PEN CD-CHICAGO-AUTO ENROLLMENT

From the Legislature

Amends the Illinois Municipal Code. Provides that, beginning January 1, 2027, a municipality with a population of 500,000 or more shall automatically enroll all employees of the municipality who first become employees of the municipality on or after January 1, 2027 and who are participants in a pension fund established under Article 5, 6, or 8 of the Illinois Pension Code into an eligible deferred compensation plan that the municipality has established for its employees. Provides that, if a municipality has not established an eligible deferred compensation plan for its employees, then the municipality shall establish an eligible deferred compensation plan for its employees on or before January 1, 2027. Provides that an employee 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 employee, the default employee contribution to the account shall be 3% of the employee's salary. Provides that the plan administrator may automatically increase employees' contributions by no more than 1% per year, and an employee may choose to opt out of the automatic increases. Limits the concurrent exercise of home rule powers. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.