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| Public Act 102-0219 | ||||
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by | ||||
changing Section 24-105.2 as follows: | ||||
(40 ILCS 5/24-105.2) | ||||
Sec. 24-105.2. Automatic enrollment for certain employees | ||||
members. 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, 6 | ||||
months after the effective date of this amendatory Act of the | ||||
101st General Assembly, first becomes an active a 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.
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As soon as practicable, the Board shall establish 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.)
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Section 99. Effective date. This Act takes effect July 1, | ||
2021.
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