HB4926sam001 102ND GENERAL ASSEMBLY

Sen. Robert F. Martwick

Filed: 3/29/2022

10200HB4926sam001 LRB102 24854 RPS 38287 a

AMENDMENT TO HOUSE BILL 4926

AMENDMENT NO. ______. Amend House Bill 4926 on page 1, line 5, by replacing "and 14-152.1" with "14-152.1, and 24-105.2 and adding Section 24-105.3"; and

on page 42, immediately below line 18, by inserting the following:

"(40 ILCS 5/24-105.2)

Sec. 24-105.2. Automatic enrollment for certain employees.

The Department of Central Management Services shall automatically enroll in the State Employees Deferred Compensation Plan any employee who, on or after July 1, 2020, becomes an active member or participant of a retirement system created under Article 2, 14, or 18. Any agency with employees subject to automatic enrollment must systematically provide the employee data necessary for enrollment to the Department of Central Management Services or its designee. 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. The Board may increase the default percentage amount of compensation deferred into employee accounts.

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, plus or minus any applicable earnings, investment fees, and administrative fees. 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.

As soon as practicable, the Board shall establish a plan for annual, automatic increases to employee contribution rates for employees who are automatically enrolled in the Plan pursuant to this Section. The amount of automatic annual increases in any 12-month period shall not exceed 1% of compensation. Employees may elect to not receive automatic annual increases in a manner described by the Board.

(Source: P.A. 101-277, eff. 1-1-20; 102-219, eff. 7-30-21.)

(40 ILCS 5/24-105.3 new)

Sec. 24-105.3. One-time automatic enrollment for certain employees. As soon as practicable, but no later than January 1, 2024, the Department of Central Management Services shall automatically enroll into the State Employees Deferred Compensation Plan all current State employees who are active members of a retirement system created under Article 2, 14, or 18 and who are not contributing to the Plan on the date of automatic enrollment under this Section. Any agency with employees subject to automatic enrollment must systematically provide the employee data necessary for enrollment to the Department of Central Management Services or its designee. An employee automatically enrolled under this Section shall have 3%, or any other percentage determined by the Board pursuant to Section 24-105.2, of his or her pretax gross compensation for each compensation period deferred into his or her deferred compensation account.

An employee shall have a one-calendar-month opt-out period prior to being automatically enrolled in the Plan, during which the employee may elect to not participate in the Plan or elect to increase or reduce the amount of pretax gross compensation deferred. An employee who does not opt out during the one-calendar-month period shall be automatically enrolled in the Plan beginning the first day of the pay period of the month following the end of the opt-out period. An employee who has been automatically enrolled in the Plan may elect, within 90 days after enrollment, to withdraw from the Plan and receive a refund of the amounts deferred, plus or minus any applicable earnings, investment fees, and administrative fees. 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.

Beginning one year after the date of automatic enrollment under this Section, or as soon as practicable thereafter, the Board shall establish a plan for automatic increases to employee contribution rates for employees who are automatically enrolled in the Plan pursuant to this Section. The amount of automatic increases in any 12-month period shall not exceed 1% of compensation. Employees may elect to not receive automatic increases in a manner described by the Board."; and

on page 42, line 20, after "law", by inserting ", except that the changes to the Illinois Pension Code amending Section 24-105.2 and adding Section 24-105.3 take effect July 1, 2022".