IL SB3462

Requires the Department of Central Management Services to automatically enroll all current state employees who are active members of the General Assembly, State Employees, or Judges retirement systems into the State Employees Deferred Compensation Plan by January 1, 2024, if they are not already contributing

Sets the default contribution rate at 3% of pretax gross compensation, with the Illinois State Board of Investment authorized to increase this percentage

Provides employees a one-calendar-month opt-out period before automatic enrollment takes effect, plus 90 days after enrollment to withdraw and receive a refund of deferred amounts (minus fees and earnings adjustments)

Employees who withdraw within 90 days forfeit any employer matching contributions, and refunded amounts are included in gross income for that tax year

Establishes automatic contribution rate increases of up to 1% per 12-month period beginning one year after enrollment, with employees able to opt out of the automatic increases