summary
Introduced
01/31/2025
01/31/2025
In Committee
01/31/2025
01/31/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Chicago Police, Chicago Firefighter, and Chicago Municipal Articles of the Illinois Pension Code. Provides that a person who becomes a member on or after January 1, 2026 shall be automatically enrolled into a federal tax qualified pre-tax retirement plan that is otherwise allowed by State and federal law. Provides that a member subject to automatic enrollment shall have the option to opt out of the plan and shall be informed of that option within 30 days after being hired. Provides that if another option is not chosen by the member, the default employee contribution to the account shall be 3% of the member's salary. Provides that the plan administrator may automatically increase members contributions by no more than 1% per year, and a member may choose to opt out of the automatic increases. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
AI Summary
This bill amends the Illinois Pension Code to establish automatic enrollment in a pre-tax retirement plan for new employees in the Chicago Police, Chicago Firefighter, and Chicago Municipal pension systems starting January 1, 2026. Under this legislation, newly hired employees will be automatically enrolled in a federal tax-qualified retirement plan, with a default contribution of 3% of their salary unless they choose otherwise. Employees will have the right to opt out of the plan within 30 days of being hired and can also opt out of automatic annual contribution increases of up to 1%. The bill aims to help employees save for retirement by creating a streamlined, default participation approach while maintaining individual choice. Additionally, the bill modifies the State Mandates Act to specify that the implementation of these changes does not require state reimbursement. The provisions are identical for police officers, firefighters, and municipal employees, ensuring consistent treatment across these public sector groups.
Sponsors (1)
Last Action
Referred to Assignments (on 01/31/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1454&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1454.htm |
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