summary
Introduced
02/06/2025
02/06/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that the System shall offer a defined contribution benefit to active full-time and part-time contractual members of the System who are employed by an employer eligible to participate in the defined contribution benefit under applicable law (instead of offering a defined contribution benefit to active members of the System). Makes conforming changes. Provides that a member who is automatically enrolled shall have 3% of his or her pre-tax compensation (instead of pre-tax gross compensation for each compensation period) deferred into his or her deferred compensation account. Provides that a member shall be automatically enrolled in the defined contribution benefit beginning the first day of the pay period following the close of the notice period, or as soon as practicable, unless the employee elects otherwise within the notice period (instead of the member's 30th day of employment). Defines "notice period". Makes changes concerning withdrawal of contributions and forfeiture of employer matching contributions. Provides that active members eligible to participate in the defined contribution benefit do not include employees of a department as defined in the State Employees Article.
AI Summary
This bill amends the Illinois Pension Code to modify the defined contribution benefit for certain teachers in the state's pension system. Specifically, the bill changes who is eligible for the optional defined contribution benefit, restricting it to full-time and part-time contractual members employed by eligible employers. The bill adjusts the automatic enrollment process, reducing the waiting period from 30 days to the first pay period after a "notice period" (a reasonable timeframe for employees to receive and respond to an automatic enrollment notice). For automatically enrolled members, 3% of their pre-tax compensation will be deferred into a deferred compensation account unless the employee opts out or adjusts the contribution amount. The bill also includes provisions to prevent recordkeepers from using participant information for cross-selling financial products and requires the pension system to produce an annual report on benefit participation. An important context is that this is part of ongoing efforts to provide more flexible retirement benefit options for public employees, giving teachers more control over their retirement savings while maintaining system transparency and participant protections.
Committee Categories
Labor and Employment
Sponsors (1)
Last Action
Rule 3-9(a) / Re-referred to Assignments (on 03/21/2025)
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=1933&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1933.htm |
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