IL SB2103

Amends the Illinois Pension Code to establish a Section 457(b) deferred compensation plan for employees of eligible employers under Article 15, with plan adoption required by September 1, 2021.

Implements automatic enrollment for new participating employees hired on or after July 1, 2023, with 3% of pre-tax compensation automatically deferred unless the employee opts out within 30 days; employees may withdraw within 90 days with a refund minus fees and earnings.

Allows the System to increase automatic contribution percentages by no more than 1% annually and permits employers to make optional employer contributions that may be adjusted or eliminated at employer discretion.

Modifies Section 24-102 to exclude employees of Article 15 employers who first become participants on or after July 1, 2023 from the State Employees Deferred Compensation Plan, unless they had an active deferral election as of June 30, 2023.

Adds an exemption to the State Mandates Act stating the State is not required to reimburse local governments for implementation costs related to this Act.