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Sen. Robert F. Martwick
Filed: 3/5/2026
| | 10400SB1454sam001 | | LRB104 08300 RTM 35172 a |
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| 1 | | AMENDMENT TO SENATE BILL 1454
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| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1454 by replacing |
| 3 | | everything after the enacting clause with the following:
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| 4 | | "Section 5. The Illinois Municipal Code is amended by |
| 5 | | adding Section 10-4-3.5 as follows:
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| 6 | | (65 ILCS 5/10-4-3.5 new) |
| 7 | | Sec. 10-4-3.5. Automatic enrollment in deferred |
| 8 | | compensation plan required. |
| 9 | | (a) As used in this Section, "eligible deferred |
| 10 | | compensation plan" has the meaning given in subsection (b) of |
| 11 | | Section 457 of the federal Internal Revenue Code. |
| 12 | | (b) Beginning January 1, 2027, a municipality with a |
| 13 | | population of 500,000 or more shall automatically enroll all |
| 14 | | employees of the municipality who first become employees of |
| 15 | | the municipality on or after January 1, 2027 and who are |
| 16 | | participants in a pension fund established under Article 5, 6, |
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| | 10400SB1454sam001 | - 2 - | LRB104 08300 RTM 35172 a |
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| 1 | | or 8 of the Illinois Pension Code into an eligible deferred |
| 2 | | compensation plan that the municipality has established for |
| 3 | | its employees. If a municipality has not established an |
| 4 | | eligible deferred compensation plan for its employees, then |
| 5 | | the municipality shall establish an eligible deferred |
| 6 | | compensation plan for its employees on or before January 1, |
| 7 | | 2027. |
| 8 | | (c) An employee subject to automatic enrollment under this |
| 9 | | Section shall have the option to opt out of the plan and shall |
| 10 | | be informed of that option within 30 days after being hired. |
| 11 | | (d) If another option is not chosen by the employee, then |
| 12 | | the default employee contribution to the account shall be 3% |
| 13 | | of the employee's salary. The plan administrator may |
| 14 | | automatically increase employees' contributions by no more |
| 15 | | than 1% per year, and an employee may choose to opt out of the |
| 16 | | automatic increases. |
| 17 | | (e) Municipalities, including home rule municipalities, |
| 18 | | may not regulate deferred compensation programs in a manner |
| 19 | | inconsistent with this Section. This Section is a denial and |
| 20 | | limitation of home rule powers and functions under subsection |
| 21 | | (i) of Section 6 of Article VII of the Illinois Constitution.
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| 22 | | Section 90. The State Mandates Act is amended by adding |
| 23 | | Section 8.50 as follows:
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| 24 | | (30 ILCS 805/8.50 new) |