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| Public Act 101-0277 | ||||
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing | ||||
Section 24-105 and by adding Section 24-105.2 as follows:
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(40 ILCS 5/24-105) (from Ch. 108 1/2, par. 24-105)
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Sec. 24-105.
The State Employees Deferred Compensation | ||||
Plan shall be
administered by the Department of Central | ||||
Management Services
subject to the general
supervision of the | ||||
Illinois State Board of Investment. Participation in
such plan | ||||
shall be by a specific written agreement between each such
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employee and the State which agreement shall provide for the | ||||
deferral of
such amount of compensation as requested by the | ||||
employee. With each
distribution of compensation to a | ||||
participating employee, the employee
shall receive a | ||||
memorandum of the amount by which his gross compensation
for | ||||
the period involved is reduced by reason of the deferment of
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compensation, which amount shall not be included as a part of | ||||
his gross
compensation as to that period.
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Funds retained by the State as deferred compensation | ||||
pursuant to a
written deferred compensation agreement between | ||||
the State and
participating employees, may be invested in such | ||||
investments as are
deemed acceptable by the Illinois State | ||||
Board of Investment including,
but not limited to, life | ||
insurance or annuity contracts or mutual funds.
All such | ||
insurance, annuities, mutual funds, or other such investments
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utilized under this Plan shall have been reviewed and selected | ||
by the
Board based on a competitive bidding process as | ||
established by such
specifications and considerations as are | ||
deemed appropriate by the
Board. Nothing in this Section should | ||
be construed as requiring a
limitation on the number and | ||
variety of insurance, annuity or mutual
fund contracts which | ||
may be selected as a result of this bidding
process. The State | ||
Board of Investment may also invest any funds retained
by the | ||
State pursuant to a written deferred compensation agreement | ||
between
the State and participating employees in share accounts | ||
or share certificate
accounts of State or federal credit | ||
unions, the accounts of which are insured
as required by The | ||
Illinois Credit Union Act or the Federal Credit Union
Act, as | ||
applicable. If a participating employee fails to direct the | ||
investment of amounts deferred into the various investment | ||
options offered to the participant, the amounts deferred shall | ||
be invested in the Plan's default investment fund and the | ||
investment shall be deemed to have been made at the | ||
participant's investment direction. Any income and gain | ||
resulting from the investment of
a deferred compensation | ||
account may be paid to the participant as additional
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compensation
for continued service during the period of | ||
participation or be used in part
for administrative expenses, | ||
all in accordance with the plan. Such investments
and payments | ||
shall not be construed to be prohibited uses of the general
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assets of the State.
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(Source: P.A. 82-789.)
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(40 ILCS 5/24-105.2 new) | ||
Sec. 24-105.2. Automatic enrollment for certain members. | ||
The Department of Central Management Services shall | ||
automatically enroll in the State Employees Deferred | ||
Compensation Plan any employee who, on or after 6 months after | ||
the effective date of this amendatory Act of the 101st General | ||
Assembly, first becomes a member or participant of a retirement | ||
system created under Article 2, 14, or 18. An employee | ||
automatically enrolled under this Section shall have 3% of his | ||
or her pre-tax gross compensation for each compensation period | ||
deferred into his or her deferred compensation account. | ||
An employee shall have 30 days from the start date of | ||
employment to elect to not participate in the deferred | ||
compensation plan or to elect to increase or reduce the amount | ||
of pre-tax gross compensation deferred. An employee shall be | ||
automatically enrolled in the Plan beginning the first day of | ||
the pay period following the employee's thirtieth day of | ||
employment. An employee who has been automatically enrolled in | ||
the Plan may elect, within 90 days of enrollment, to withdraw | ||
from the Plan and receive a refund of amounts deferred. An | ||
employee making such an election shall forfeit all employer | ||
matching contributions, if any, made prior to the election. Any | ||
refunded amount shall be included in the employee's gross | ||
income for the taxable year in which the refund is issued.
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