SB3019 101ST GENERAL ASSEMBLY

LRB101 19667 RPS 69157 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3019

Introduced 2/5/2020, by Sen. Robert F. Martwick

SYNOPSIS AS INTRODUCED:

40 ILCS 5/15-202

Amends the State Universities Article of the Illinois Pension Code. Provides that as soon as practicable after the effective date of the amendatory Act, the optional defined contribution plan shall provide for an eligible automatic contribution arrangement that permits a withdrawal of default elective contributions in accordance with a specified provision of the Internal Revenue Code of 1986, as amended, and United States Department of Treasury regulations promulgated thereunder. Changes references from "defined contribution benefit" to "defined contribution plan". Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

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 changing Section 15-202 as follows:

(40 ILCS 5/15-202)

Sec. 15-202. Optional defined contribution plan benefit. As soon as practicable after the effective date of this amendatory Act of the 100th General Assembly, the System shall offer a defined contribution plan benefit to active members of the System. The defined contribution plan benefit shall be an optional benefit to any member who chooses to participate. As soon as practicable after the effective date of this amendatory Act of the 101st General Assembly, the defined contribution plan shall provide for an eligible automatic contribution arrangement that permits a withdrawal of default elective contributions in accordance with Section 414(w) of the Internal Revenue Code of 1986, as amended, and United States Department of Treasury regulations promulgated thereunder. The defined contribution plan benefit shall collect optional employee and optional employer contributions into an account and shall offer investment options to the participant. The plan benefit under this Section shall be operated in full compliance with any applicable State and federal laws, and the System shall utilize generally accepted practices in creating and maintaining the plan benefit for the best interest of the participants. The System may use funds from the employee and employer contributions to defray any and all costs of creating and maintaining the plan benefit. The System shall produce an annual report on the participation in the plan benefit and shall make the report public.

(Source: P.A. 100-769, eff. 8-10-18.)

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