SB1454 mandates automatic enrollment of new Chicago police, firefighter, and municipal employees into a federal tax-qualified retirement plan.
SB1454 amends the Illinois Pension Code to automatically enroll new Chicago police, firefighter, and municipal employees into a federal tax-qualified pre-tax retirement plan starting January 1, 2026. Employees have the option to opt out within 30 days of being hired. If no other option is chosen, the default contribution is 3% of the employee's salary. The plan administrator may increase contributions by up to 1% annually, which employees can opt out of. The State Mandates Act is also amended to exempt this mandate from requiring state reimbursement.
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