Bill > SB0690

This bill makes a technical amendment to the Illinois Pension Code, specifically Section 24-101, which concerns deferred compensation for public employees. The bill removes and replaces the word "the" in a sentence about how state, local government, and school districts can enter into written contracts with employees to defer part of their gross compensation. The provision allows public employers to invest deferred funds in a manner prescribed by their deferred compensation program, with the important limitation that the deferred compensation cannot exceed the amount that can be deferred without being subject to income tax in the year it is earned, as defined by Section 457 of the United States Internal Revenue Code. The bill emphasizes that providing public employees with a compensation deferral plan is in the public interest, as it can encourage continued public service by offering a mechanism for employees to invest and potentially grow their earnings over time.

Government Affairs

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=690&GAID=18&DocTypeID=SB&SessionID=114&GA=104