SB3612 103RD GENERAL ASSEMBLY

LRB103 39182 RPS 69328 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3612

Introduced 2/9/2024, by Sen. Robert F. Martwick

SYNOPSIS AS INTRODUCED:

40 ILCS 5/5-239 new
40 ILCS 5/6-231 new
40 ILCS 5/8-244.5 new

Amends the Chicago Police, Chicago Firefighter, and Chicago Municipal Articles of the Illinois Pension Code. Provides that a person who becomes a member on or after January 1, 2025 shall be automatically enrolled into a federal tax qualified pre-tax retirement plan that is otherwise allowed by State and federal law. Provides that a member subject to automatic enrollment shall have the option to opt out of the plan and shall be informed of that option within 30 days after being hired. Provides that if another option is not chosen by the member, the default employee contribution to the account shall be 3% of the member's salary. Provides that the plan administrator may automatically increase members contributions by no more than 1% per year, and a member may choose to opt out of the automatic increases. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by adding Sections 5-239, 6-231 and 8-244.5 as follows:

(40 ILCS 5/5-239 new)

Sec. 5-239. Automatic enrollment into a tax qualified retirement plan. Beginning on January 1, 2025, all persons who become policemen on or after January 1, 2025 shall be automatically enrolled into a federal tax qualified pre-tax retirement plan that is otherwise allowed by State and federal law. A policeman subject to automatic enrollment shall have the option to opt out of the plan and shall be informed of that option within 30 days after being hired.

If another option is not chosen by the policeman, the default employee contribution to the account shall be 3% of his or her salary. The plan administrator may automatically increase members contributions by no more than 1% per year, and a policeman may choose to opt out of the automatic increases.

(40 ILCS 5/6-231 new)

Sec. 6-231. Automatic enrollment into a tax qualified retirement plan. Beginning on January 1, 2025, all persons who become firemen on or after January 1, 2025 shall be automatically enrolled into a federal tax qualified pre-tax retirement plan that is otherwise allowed by State and federal law. A fireman subject to automatic enrollment shall have the option to opt out of the plan and shall be informed of that option within 30 days after being hired.

If another option is not chosen by the fireman, the default employee contribution to the account shall be 3% of his or her salary. The plan administrator may automatically increase firemen's contributions by no more than 1% per year, and a fireman may choose to opt out of the automatic increases.

(40 ILCS 5/8-244.5 new)

Sec. 8-244.5. Automatic enrollment into a tax qualified retirement plan. Beginning on January 1, 2025, all persons who become employees on or after January 1, 2025 shall be automatically enrolled into a federal tax qualified pre-tax retirement plan that is otherwise allowed by State and federal law. An employee subject to automatic enrollment shall have the option to opt out of the plan and shall be informed of that option within 30 days after being hired.

If another option is not chosen by the employee, the default employee contribution to the account shall be 3% of his or her salary. The plan administrator may automatically increase employees' contributions by no more than 1% per year, and an employee may choose to opt out of the automatic increases.

Section 99. Effective date. This Act takes effect upon becoming law.