IL
Illinois Senate Bill SB3683

Illinois 2023-2024 Regular Session

Illinois Senate Bill SB3683 Compare Versions

Only one version of the bill is available at this time.
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11 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 new40 ILCS 5/10-110 new40 ILCS 5/13-314.5 new30 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. LRB103 39183 RPS 69329 b A BILL FOR 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 new40 ILCS 5/10-110 new40 ILCS 5/13-314.5 new30 ILCS 805/8.48 new 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. LRB103 39183 RPS 69329 b LRB103 39183 RPS 69329 b A BILL FOR
22 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3683 Introduced 2/9/2024, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
33 40 ILCS 5/9-242 new40 ILCS 5/10-110 new40 ILCS 5/13-314.5 new30 ILCS 805/8.48 new 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
44 40 ILCS 5/9-242 new
55 40 ILCS 5/10-110 new
66 40 ILCS 5/13-314.5 new
77 30 ILCS 805/8.48 new
88 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.
99 LRB103 39183 RPS 69329 b LRB103 39183 RPS 69329 b
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1111 A BILL FOR
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1414 1 AN ACT concerning public employee benefits.
1515 2 Be it enacted by the People of the State of Illinois,
1616 3 represented in the General Assembly:
1717 4 Section 5. The Illinois Pension Code is amended by adding
1818 5 Sections 9-242, 10-110, and 13-314.5 as follows:
1919 6 (40 ILCS 5/9-242 new)
2020 7 Sec. 9-242. Automatic enrollment in optional savings plan.
2121 8 (a) On and after January 1, 2025, the county must provide a
2222 9 federal tax qualified pre-tax retirement plan otherwise
2323 10 allowed by State and federal law for each employee. Any
2424 11 employee who becomes an employee on or after January 1, 2025
2525 12 must be automatically enrolled in the federal tax qualified
2626 13 pre-tax retirement plan established under this Section;
2727 14 however, an employee may opt out of the federal tax qualified
2828 15 pre-tax retirement plan, as provided in this Section.
2929 16 (b) If another option is not chosen by the employee,
3030 17 collective bargaining unit, or a retirement savings committee,
3131 18 the default employee contribution to this account shall be 2%
3232 19 of salary. Any employee may terminate participation in the
3333 20 benefit at any time, subject to any restrictions posted within
3434 21 the plan document. The plan shall be designed to receive
3535 22 employee contributions, but may also receive employer
3636 23 contributions based on the decision of the county. The
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4040 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3683 Introduced 2/9/2024, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
4141 40 ILCS 5/9-242 new40 ILCS 5/10-110 new40 ILCS 5/13-314.5 new30 ILCS 805/8.48 new 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
4242 40 ILCS 5/9-242 new
4343 40 ILCS 5/10-110 new
4444 40 ILCS 5/13-314.5 new
4545 30 ILCS 805/8.48 new
4646 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.
4747 LRB103 39183 RPS 69329 b LRB103 39183 RPS 69329 b
4848 LRB103 39183 RPS 69329 b
4949 A BILL FOR
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5757 40 ILCS 5/13-314.5 new
5858 30 ILCS 805/8.48 new
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7777 1 administration of this benefit shall be a permissive subject
7878 2 of collective bargaining; however, if the county offers the
7979 3 same benefit to employees under multiple collective bargaining
8080 4 units, then the county may create a retirement savings
8181 5 committee that shall include one representative appointed by
8282 6 each collective bargaining unit and one representative
8383 7 appointed by the president of the county. If there is a
8484 8 retirement savings committee, the committee shall approve of
8585 9 the administration of this benefit by affirmative vote prior
8686 10 to the creation or change of the benefit. The county may
8787 11 contract with outside parties to administer or offer this
8888 12 benefit. The cost of offering this benefit shall be borne by
8989 13 the participants in the benefit; however, the county may
9090 14 absorb incidental and normal costs, including, but not limited
9191 15 to, staff time, information technology, meeting space, or
9292 16 minor administrative costs.
9393 17 (c) The county shall create or cause to be created a
9494 18 benefit plan document, which shall have, at a minimum, an
9595 19 overview of the costs for participants under the plan, the
9696 20 name of the administrator of the plan, an overview of the
9797 21 benefits of the plan, and all options allowed under the plan.
9898 22 (d) The county shall distribute the plan document to
9999 23 participants or possible participants as well as to the Public
100100 24 Pension Division of the Department of Insurance by February 1
101101 25 of each year. The Public Pension Division of the Department of
102102 26 Insurance shall review the plan document to determine whether
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113113 1 the plan document represents best practices. If the Public
114114 2 Pension Division of the Department of Insurance determines
115115 3 that an aspect of the plan document does not represent best
116116 4 practices, the Public Pension Division of the Department of
117117 5 Insurance shall inform the county and the employees of the
118118 6 county covered under this Section. The Public Pension Division
119119 7 of the Department of Insurance shall create an annual report
120120 8 of any plan that does not use best practices. The Department of
121121 9 Insurance shall adopt rules to implement and administer this
122122 10 Section. The Public Pension Division of the Department of
123123 11 Insurance may charge fees to the county to administer this
124124 12 Section. The Public Pension Division of the Department of
125125 13 Insurance may charge the extra costs associated with the
126126 14 county's failure to use best practices directly to the county.
127127 15 (40 ILCS 5/10-110 new)
128128 16 Sec. 10-110. Automatic enrollment in optional savings
129129 17 plan.
130130 18 (a) On and after January 1, 2025, the District must
131131 19 provide a federal tax qualified pre-tax retirement plan
132132 20 otherwise allowed by State and federal law for each employee.
133133 21 Any employee who becomes an employee on or after January 1,
134134 22 2025 must be automatically enrolled in the federal tax
135135 23 qualified pre-tax retirement plan established under this
136136 24 Section; however, an employee may opt out of the federal tax
137137 25 qualified pre-tax retirement plan, as provided in this
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148148 1 Section.
149149 2 (b) If another option is not chosen by the employee,
150150 3 collective bargaining unit, or a retirement savings committee,
151151 4 the default employee contribution to this account shall be 2%
152152 5 of salary. Any employee may terminate participation in the
153153 6 benefit at any time, subject to any restrictions posted within
154154 7 the plan document. The plan shall be designed to receive
155155 8 employee contributions, but may also receive employer
156156 9 contributions based on the decision of the District. The
157157 10 administration of this benefit shall be a permissive subject
158158 11 of collective bargaining; however, if the District offers the
159159 12 same benefit to employees under multiple collective bargaining
160160 13 units, then the District may create a retirement savings
161161 14 committee that shall include one representative appointed by
162162 15 each collective bargaining unit and one representative
163163 16 appointed by the president of the county. If there is a
164164 17 retirement savings committee, the committee shall approve of
165165 18 the administration of this benefit by affirmative vote prior
166166 19 to the creation or change of the benefit. The District may
167167 20 contract with outside parties to administer or offer this
168168 21 benefit. The cost of offering this benefit shall be borne by
169169 22 the participants in the benefit; however, the District may
170170 23 absorb incidental and normal costs, including, but not limited
171171 24 to, staff time, information technology, meeting space, or
172172 25 minor administrative costs.
173173 26 (c) The District shall create or cause to be created a
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184184 1 benefit plan document, which shall have, at a minimum, an
185185 2 overview of the costs for participants under the plan, the
186186 3 name of the administrator of the plan, an overview of the
187187 4 benefits of the plan, and all options allowed under the plan.
188188 5 (d) The District shall distribute the plan document to
189189 6 participants or possible participants as well as to the Public
190190 7 Pension Division of the Department of Insurance by February 1
191191 8 of each year. The Public Pension Division of the Department of
192192 9 Insurance shall review the plan document to determine whether
193193 10 the plan document represents best practices. If the Public
194194 11 Pension Division of the Department of Insurance determines
195195 12 that an aspect of the plan document does not represent best
196196 13 practices, the Public Pension Division of the Department of
197197 14 Insurance shall inform the District and the employees of the
198198 15 District covered under this Section. The Public Pension
199199 16 Division of the Department of Insurance shall create an annual
200200 17 report of any plan that does not use best practices. The
201201 18 Department of Insurance shall adopt rules to implement and
202202 19 administer this Section. The Public Pension Division of the
203203 20 Department of Insurance may charge fees to the District to
204204 21 administer this Section. The Public Pension Division of the
205205 22 Department of Insurance may charge the extra costs associated
206206 23 with the District's failure to use best practices directly to
207207 24 the District.
208208 25 (40 ILCS 5/13-314.5 new)
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219219 1 Sec. 13-314.5. Automatic enrollment in optional savings
220220 2 plan.
221221 3 (a) On and after January 1, 2025, the Employer must
222222 4 provide a federal tax qualified pre-tax retirement plan
223223 5 otherwise allowed by State and federal law for each employee.
224224 6 Any employee who becomes an employee on or after January 1,
225225 7 2025 must be automatically enrolled in the federal tax
226226 8 qualified pre-tax retirement plan established under this
227227 9 Section; however, an employee may opt out of the federal tax
228228 10 qualified pre-tax retirement plan, as provided in this
229229 11 Section.
230230 12 (b) If another option is not chosen by the employee,
231231 13 collective bargaining unit, or a retirement savings committee,
232232 14 the default employee contribution to this account shall be 2%
233233 15 of salary. Any employee may terminate participation in the
234234 16 benefit at any time, subject to any restrictions posted within
235235 17 the plan document. The plan shall be designed to receive
236236 18 employee contributions, but may also receive employer
237237 19 contributions based on the decision of the Employer. The
238238 20 administration of this benefit shall be a permissive subject
239239 21 of collective bargaining; however, if the Employer offers the
240240 22 same benefit to employees under multiple collective bargaining
241241 23 units, then the Employer may create a retirement savings
242242 24 committee that shall include one representative appointed by
243243 25 each collective bargaining unit and one representative
244244 26 appointed by the President of the Metropolitan Water
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255255 1 Reclamation District Board of Commissioners. If there is a
256256 2 retirement savings committee, the committee shall approve of
257257 3 the administration of this benefit by affirmative vote prior
258258 4 to the creation or change of the benefit. The Employer may
259259 5 contract with outside parties to administer or offer this
260260 6 benefit. The cost of offering this benefit shall be borne by
261261 7 the participants in the benefit; however, the Employer may
262262 8 absorb incidental and normal costs, including, but not limited
263263 9 to, staff time, information technology, meeting space, or
264264 10 minor administrative costs.
265265 11 (c) The Employer shall create or cause to be created a
266266 12 benefit plan document, which shall have, at a minimum, an
267267 13 overview of the costs for participants under the plan, the
268268 14 name of the administrator of the plan, an overview of the
269269 15 benefits of the plan, and all options allowed under the plan.
270270 16 (d) The Employer shall distribute the plan document to
271271 17 participants or possible participants as well as to the Public
272272 18 Pension Division of the Department of Insurance by February 1
273273 19 of each year. The Public Pension Division of the Department of
274274 20 Insurance shall review the plan document to determine whether
275275 21 the plan document represents best practices. If the Public
276276 22 Pension Division of the Department of Insurance determines
277277 23 that an aspect of the plan document does not represent best
278278 24 practices, the Public Pension Division of the Department of
279279 25 Insurance shall inform the Employer and the employees covered
280280 26 under this Section. The Public Pension Division of the
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291291 1 Department of Insurance shall create an annual report of any
292292 2 plan that does not use best practices. The Department of
293293 3 Insurance shall adopt rules to implement and administer this
294294 4 Section. The Public Pension Division of the Department of
295295 5 Insurance may charge fees to the Employer to administer this
296296 6 Section. The Public Pension Division of the Department of
297297 7 Insurance may charge the extra costs associated with the
298298 8 Employer's failure to use best practices directly to the
299299 9 Employer.
300300 10 Section 90. The State Mandates Act is amended by adding
301301 11 Section 8.48 as follows:
302302 12 (30 ILCS 805/8.48 new)
303303 13 Sec. 8.48. Exempt mandate. Notwithstanding Sections 6 and
304304 14 8 of this Act, no reimbursement by the State is required for
305305 15 the implementation of any mandate created by this amendatory
306306 16 Act of the 103rd General Assembly.
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