Full Text of HB4926 102nd General Assembly
HB4926sam002 102ND GENERAL ASSEMBLY | Sen. Robert F. Martwick Filed: 3/31/2022
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| 1 | | AMENDMENT TO HOUSE BILL 4926
| 2 | | AMENDMENT NO. ______. Amend House Bill 4926 on page 1, | 3 | | line 5, by replacing "and 14-152.1" with "14-152.1, and | 4 | | 24-105.2 and adding Section 24-105.3"; and
| 5 | | on page 42, immediately below line 18, by inserting the | 6 | | following: | 7 | | "(40 ILCS 5/24-105.2) | 8 | | Sec. 24-105.2. Automatic enrollment for certain employees. | 9 | | The Department of Central Management Services shall | 10 | | automatically enroll in the State Employees Deferred | 11 | | Compensation Plan any employee who, on or after July 1, 2020, | 12 | | becomes an active member or participant of a retirement system | 13 | | created under Article 2, 14, or 18. Any agency with employees | 14 | | subject to automatic enrollment must systematically provide | 15 | | the employee data necessary for enrollment to the Department | 16 | | of Central Management Services or its designee. An employee |
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| 1 | | automatically enrolled under this Section shall have 3% of his | 2 | | or her pre-tax gross compensation for each compensation period | 3 | | deferred into his or her deferred compensation account. The | 4 | | Board may increase the default percentage amount of | 5 | | compensation deferred into employee accounts. | 6 | | An employee shall have 30 days from the start date of | 7 | | employment to elect to not participate in the deferred | 8 | | compensation plan or to elect to increase or reduce the amount | 9 | | of pre-tax gross compensation deferred. An employee shall be | 10 | | automatically enrolled in the Plan beginning the first day of | 11 | | the pay period following the employee's thirtieth day of | 12 | | employment. An employee who has been automatically enrolled in | 13 | | the Plan may elect, within 90 days of enrollment, to withdraw | 14 | | from the Plan and receive a refund of amounts deferred, plus or | 15 | | minus any applicable earnings, investment fees, and | 16 | | administrative fees. An employee making such an election shall | 17 | | forfeit all employer matching contributions, if any, made | 18 | | prior to the election. Any refunded amount shall be included | 19 | | in the employee's gross income for the taxable year in which | 20 | | the refund is issued.
| 21 | | As soon as practicable, the Board shall establish a plan | 22 | | for annual, automatic increases to employee contribution rates | 23 | | for employees who are automatically enrolled in the Plan | 24 | | pursuant to this Section. The amount of automatic annual | 25 | | increases in any 12-month period shall not exceed 1% of | 26 | | compensation. Employees may elect to not receive automatic |
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| 1 | | annual increases in a manner described by the Board. | 2 | | (Source: P.A. 101-277, eff. 1-1-20; 102-219, eff. 7-30-21.) | 3 | | (40 ILCS 5/24-105.3 new) | 4 | | Sec. 24-105.3. One-time automatic enrollment for certain | 5 | | employees. As soon as practicable, but no later than January | 6 | | 1, 2024, the Department of Central Management Services shall | 7 | | automatically enroll into the State Employees Deferred | 8 | | Compensation Plan all current State employees who are active | 9 | | members of a retirement system created under Article 2, 14, or | 10 | | 18 and who are not contributing to the Plan on the date of | 11 | | automatic enrollment under this Section. Any agency with | 12 | | employees subject to automatic enrollment must systematically | 13 | | provide the employee data necessary for enrollment to the | 14 | | Department of Central Management Services or its designee. An | 15 | | employee automatically enrolled under this Section shall have | 16 | | 3%, or any other percentage determined by the Board pursuant | 17 | | to Section 24-105.2, of his or her pretax gross compensation | 18 | | for each compensation period deferred into his or her deferred | 19 | | compensation account. | 20 | | An employee shall have a one-calendar-month opt-out period | 21 | | prior to being automatically enrolled in the Plan, during | 22 | | which the employee may elect to not participate in the Plan or | 23 | | elect to increase or reduce the amount of pretax gross | 24 | | compensation deferred. An employee who does not opt out during | 25 | | the one-calendar-month period shall be automatically enrolled |
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| 1 | | in the Plan beginning the first day of the pay period of the | 2 | | month following the end of the opt-out period. An employee who | 3 | | has been automatically enrolled in the Plan may elect, within | 4 | | 90 days after enrollment, to withdraw from the Plan and | 5 | | receive a refund of the amounts deferred, plus or minus any | 6 | | applicable earnings, investment fees, and administrative fees. | 7 | | An employee making such an election shall forfeit all employer | 8 | | matching contributions, if any, made prior to the election. | 9 | | Any refunded amount shall be included in the employee's gross | 10 | | income for the taxable year in which the refund is issued. | 11 | | Beginning one year after the date of automatic enrollment | 12 | | under this Section, or as soon as practicable thereafter, the | 13 | | Board shall establish a plan for automatic increases to | 14 | | employee contribution rates for employees who are | 15 | | automatically enrolled in the Plan pursuant to this Section. | 16 | | The amount of automatic increases in any 12-month period shall | 17 | | not exceed 1% of compensation. Employees may elect to not | 18 | | receive automatic increases in a manner described by the | 19 | | Board. "; and | 20 | | on page 42, line 20, after "law", by inserting ", except that | 21 | | the changes to the Illinois Pension Code amending Section | 22 | | 24-105.2 and adding Section 24-105.3 take effect July 1, | 23 | | 2022".
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