HB 3082

Abstract

Amends the Deferred Compensation Article of the Illinois Pension Code. Provides that the Department of Central Management Services shall automatically enroll in the deferred compensation plan any employee who, on or after 6 months after the effective date of the amendatory Act, first becomes a member or participant under the General Assembly, State Employees, or Judges Article. Provides that an employee automatically enrolled shall have 3% of his or her gross compensation for each compensation period deferred into his or her deferred compensation account. Provides that an employee automatically enrolled in the deferred compensation plan shall have 6 months from the date of enrollment to elect to not participate in the deferred compensation plan or to elect to increase or reduce the amount of gross compensation deferred. Provides that an automatically enrolled employee who elects not to participate shall receive a refund of the compensation deferred. House Committee Amendment No. 1 Adds reference to: 40 ILCS 5/24-105 from Ch. 108 1/2, par. 24-105 Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes. Provides that if a participating employee fails to direct the investment of amounts deferred into the various investment options offered to the participant, the amounts deferred shall be invested in the Plan's default investment fund and the investment shall be deemed to have been made at the participant's investment direction. Provides that an employee automatically enrolled into the deferred compensation plan shall have 3% of his or her pre-tax gross compensation (instead of gross compensation) for each compensation period deferred into his or her deferred compensation account. Provides that an employee shall have 30 days from the start date of employment (instead of 6 months from the date of enrollment) to elect to not participate in the deferred compensation plan or to elect to increase or reduce the amount of gross compensation deferred. Provides that an employee shall be automatically enrolled in the deferred compensation plan beginning the first day of the pay period following the employee's thirtieth day of employment. Makes changes to provisions concerning withdrawal from the deferred compensation plan. Provides that an employee electing to withdraw from the deferred compensation plan shall forfeit all employer matching contributions, if any, made prior to the election. Provides that any refunded amount shall be included in the employee's gross income for the taxable year in which the refund is issued.