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Public Act 101-0277
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| HB3082 Enrolled | LRB101 10487 RPS 55593 b |
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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 |
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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, |
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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 |