Full Text of SB3683 103rd General Assembly
SB3683 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB3683 Introduced 2/9/2024, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: | | 40 ILCS 5/9-242 new | | 40 ILCS 5/10-110 new | | 40 ILCS 5/13-314.5 new | | 30 ILCS 805/8.48 new | |
| Amends the Cook County, Cook County Forest Preserve District, and Metropolitan Water Reclamation District (MWRD) Articles of the Illinois Pension Code. Provides that the employer shall provide a federal tax qualified pre-tax retirement plan otherwise allowed by State and federal law for each employee. Provides that the employer shall automatically enroll employees who become employees or after January 1, 2025 into a federal tax qualified pre-tax retirement plan. Provides for a default contribution amount; collective bargaining; a retirement savings committee; plan document; review of the plan document by the Public Pension Division of the Department of Insurance; and fees charged by the Public Pension Division of the Department of Insurance to the municipality. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. |
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| | A BILL FOR |
| | | | SB3683 | | LRB103 39183 RPS 69329 b |
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| 1 | | AN ACT concerning public employee benefits. | 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly: | 4 | | Section 5. The Illinois Pension Code is amended by adding | 5 | | Sections 9-242, 10-110, and 13-314.5 as follows: | 6 | | (40 ILCS 5/9-242 new) | 7 | | Sec. 9-242. Automatic enrollment in optional savings plan. | 8 | | (a) On and after January 1, 2025, the county must provide a | 9 | | federal tax qualified pre-tax retirement plan otherwise | 10 | | allowed by State and federal law for each employee. Any | 11 | | employee who becomes an employee on or after January 1, 2025 | 12 | | must be automatically enrolled in the federal tax qualified | 13 | | pre-tax retirement plan established under this Section; | 14 | | however, an employee may opt out of the federal tax qualified | 15 | | pre-tax retirement plan, as provided in this Section. | 16 | | (b) If another option is not chosen by the employee, | 17 | | collective bargaining unit, or a retirement savings committee, | 18 | | the default employee contribution to this account shall be 2% | 19 | | of salary. Any employee may terminate participation in the | 20 | | benefit at any time, subject to any restrictions posted within | 21 | | the plan document. The plan shall be designed to receive | 22 | | employee contributions, but may also receive employer | 23 | | contributions based on the decision of the county. The |
| | | SB3683 | - 2 - | LRB103 39183 RPS 69329 b |
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| 1 | | administration of this benefit shall be a permissive subject | 2 | | of collective bargaining; however, if the county offers the | 3 | | same benefit to employees under multiple collective bargaining | 4 | | units, then the county may create a retirement savings | 5 | | committee that shall include one representative appointed by | 6 | | each collective bargaining unit and one representative | 7 | | appointed by the president of the county. If there is a | 8 | | retirement savings committee, the committee shall approve of | 9 | | the administration of this benefit by affirmative vote prior | 10 | | to the creation or change of the benefit. The county may | 11 | | contract with outside parties to administer or offer this | 12 | | benefit. The cost of offering this benefit shall be borne by | 13 | | the participants in the benefit; however, the county may | 14 | | absorb incidental and normal costs, including, but not limited | 15 | | to, staff time, information technology, meeting space, or | 16 | | minor administrative costs. | 17 | | (c) The county shall create or cause to be created a | 18 | | benefit plan document, which shall have, at a minimum, an | 19 | | overview of the costs for participants under the plan, the | 20 | | name of the administrator of the plan, an overview of the | 21 | | benefits of the plan, and all options allowed under the plan. | 22 | | (d) The county shall distribute the plan document to | 23 | | participants or possible participants as well as to the Public | 24 | | Pension Division of the Department of Insurance by February 1 | 25 | | of each year. The Public Pension Division of the Department of | 26 | | Insurance shall review the plan document to determine whether |
| | | SB3683 | - 3 - | LRB103 39183 RPS 69329 b |
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| 1 | | the plan document represents best practices. If the Public | 2 | | Pension Division of the Department of Insurance determines | 3 | | that an aspect of the plan document does not represent best | 4 | | practices, the Public Pension Division of the Department of | 5 | | Insurance shall inform the county and the employees of the | 6 | | county covered under this Section. The Public Pension Division | 7 | | of the Department of Insurance shall create an annual report | 8 | | of any plan that does not use best practices. The Department of | 9 | | Insurance shall adopt rules to implement and administer this | 10 | | Section. The Public Pension Division of the Department of | 11 | | Insurance may charge fees to the county to administer this | 12 | | Section. The Public Pension Division of the Department of | 13 | | Insurance may charge the extra costs associated with the | 14 | | county's failure to use best practices directly to the county. | 15 | | (40 ILCS 5/10-110 new) | 16 | | Sec. 10-110. Automatic enrollment in optional savings | 17 | | plan. | 18 | | (a) On and after January 1, 2025, the District must | 19 | | provide a federal tax qualified pre-tax retirement plan | 20 | | otherwise allowed by State and federal law for each employee. | 21 | | Any employee who becomes an employee on or after January 1, | 22 | | 2025 must be automatically enrolled in the federal tax | 23 | | qualified pre-tax retirement plan established under this | 24 | | Section; however, an employee may opt out of the federal tax | 25 | | qualified pre-tax retirement plan, as provided in this |
| | | SB3683 | - 4 - | LRB103 39183 RPS 69329 b |
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| 1 | | Section. | 2 | | (b) If another option is not chosen by the employee, | 3 | | collective bargaining unit, or a retirement savings committee, | 4 | | the default employee contribution to this account shall be 2% | 5 | | of salary. Any employee may terminate participation in the | 6 | | benefit at any time, subject to any restrictions posted within | 7 | | the plan document. The plan shall be designed to receive | 8 | | employee contributions, but may also receive employer | 9 | | contributions based on the decision of the District. The | 10 | | administration of this benefit shall be a permissive subject | 11 | | of collective bargaining; however, if the District offers the | 12 | | same benefit to employees under multiple collective bargaining | 13 | | units, then the District may create a retirement savings | 14 | | committee that shall include one representative appointed by | 15 | | each collective bargaining unit and one representative | 16 | | appointed by the president of the county. If there is a | 17 | | retirement savings committee, the committee shall approve of | 18 | | the administration of this benefit by affirmative vote prior | 19 | | to the creation or change of the benefit. The District may | 20 | | contract with outside parties to administer or offer this | 21 | | benefit. The cost of offering this benefit shall be borne by | 22 | | the participants in the benefit; however, the District may | 23 | | absorb incidental and normal costs, including, but not limited | 24 | | to, staff time, information technology, meeting space, or | 25 | | minor administrative costs. | 26 | | (c) The District shall create or cause to be created a |
| | | SB3683 | - 5 - | LRB103 39183 RPS 69329 b |
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| 1 | | benefit plan document, which shall have, at a minimum, an | 2 | | overview of the costs for participants under the plan, the | 3 | | name of the administrator of the plan, an overview of the | 4 | | benefits of the plan, and all options allowed under the plan. | 5 | | (d) The District shall distribute the plan document to | 6 | | participants or possible participants as well as to the Public | 7 | | Pension Division of the Department of Insurance by February 1 | 8 | | of each year. The Public Pension Division of the Department of | 9 | | Insurance shall review the plan document to determine whether | 10 | | the plan document represents best practices. If the Public | 11 | | Pension Division of the Department of Insurance determines | 12 | | that an aspect of the plan document does not represent best | 13 | | practices, the Public Pension Division of the Department of | 14 | | Insurance shall inform the District and the employees of the | 15 | | District covered under this Section. The Public Pension | 16 | | Division of the Department of Insurance shall create an annual | 17 | | report of any plan that does not use best practices. The | 18 | | Department of Insurance shall adopt rules to implement and | 19 | | administer this Section. The Public Pension Division of the | 20 | | Department of Insurance may charge fees to the District to | 21 | | administer this Section. The Public Pension Division of the | 22 | | Department of Insurance may charge the extra costs associated | 23 | | with the District's failure to use best practices directly to | 24 | | the District. | 25 | | (40 ILCS 5/13-314.5 new) |
| | | SB3683 | - 6 - | LRB103 39183 RPS 69329 b |
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| 1 | | Sec. 13-314.5. Automatic enrollment in optional savings | 2 | | plan. | 3 | | (a) On and after January 1, 2025, the Employer must | 4 | | provide a federal tax qualified pre-tax retirement plan | 5 | | otherwise allowed by State and federal law for each employee. | 6 | | Any employee who becomes an employee on or after January 1, | 7 | | 2025 must be automatically enrolled in the federal tax | 8 | | qualified pre-tax retirement plan established under this | 9 | | Section; however, an employee may opt out of the federal tax | 10 | | qualified pre-tax retirement plan, as provided in this | 11 | | Section. | 12 | | (b) If another option is not chosen by the employee, | 13 | | collective bargaining unit, or a retirement savings committee, | 14 | | the default employee contribution to this account shall be 2% | 15 | | of salary. Any employee may terminate participation in the | 16 | | benefit at any time, subject to any restrictions posted within | 17 | | the plan document. The plan shall be designed to receive | 18 | | employee contributions, but may also receive employer | 19 | | contributions based on the decision of the Employer. The | 20 | | administration of this benefit shall be a permissive subject | 21 | | of collective bargaining; however, if the Employer offers the | 22 | | same benefit to employees under multiple collective bargaining | 23 | | units, then the Employer may create a retirement savings | 24 | | committee that shall include one representative appointed by | 25 | | each collective bargaining unit and one representative | 26 | | appointed by the President of the Metropolitan Water |
| | | SB3683 | - 7 - | LRB103 39183 RPS 69329 b |
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| 1 | | Reclamation District Board of Commissioners. If there is a | 2 | | retirement savings committee, the committee shall approve of | 3 | | the administration of this benefit by affirmative vote prior | 4 | | to the creation or change of the benefit. The Employer may | 5 | | contract with outside parties to administer or offer this | 6 | | benefit. The cost of offering this benefit shall be borne by | 7 | | the participants in the benefit; however, the Employer may | 8 | | absorb incidental and normal costs, including, but not limited | 9 | | to, staff time, information technology, meeting space, or | 10 | | minor administrative costs. | 11 | | (c) The Employer shall create or cause to be created a | 12 | | benefit plan document, which shall have, at a minimum, an | 13 | | overview of the costs for participants under the plan, the | 14 | | name of the administrator of the plan, an overview of the | 15 | | benefits of the plan, and all options allowed under the plan. | 16 | | (d) The Employer shall distribute the plan document to | 17 | | participants or possible participants as well as to the Public | 18 | | Pension Division of the Department of Insurance by February 1 | 19 | | of each year. The Public Pension Division of the Department of | 20 | | Insurance shall review the plan document to determine whether | 21 | | the plan document represents best practices. If the Public | 22 | | Pension Division of the Department of Insurance determines | 23 | | that an aspect of the plan document does not represent best | 24 | | practices, the Public Pension Division of the Department of | 25 | | Insurance shall inform the Employer and the employees covered | 26 | | under this Section. The Public Pension Division of the |
| | | SB3683 | - 8 - | LRB103 39183 RPS 69329 b |
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| 1 | | Department of Insurance shall create an annual report of any | 2 | | plan that does not use best practices. The Department of | 3 | | Insurance shall adopt rules to implement and administer this | 4 | | Section. The Public Pension Division of the Department of | 5 | | Insurance may charge fees to the Employer to administer this | 6 | | Section. The Public Pension Division of the Department of | 7 | | Insurance may charge the extra costs associated with the | 8 | | Employer's failure to use best practices directly to the | 9 | | Employer. | 10 | | Section 90. The State Mandates Act is amended by adding | 11 | | Section 8.48 as follows: | 12 | | (30 ILCS 805/8.48 new) | 13 | | Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and | 14 | | 8 of this Act, no reimbursement by the State is required for | 15 | | the implementation of any mandate created by this amendatory | 16 | | Act of the 103rd General Assembly. | 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law. |
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