IL SB1454

Requires automatic enrollment of new Chicago police officers, firefighters, and municipal employees hired on or after January 1, 2026 into a federal tax-qualified pre-tax retirement plan (such as a 457 or 401(a) plan)

Sets the default employee contribution at 3% of salary if no other option is selected by the member

Allows plan administrators to automatically increase member contributions by up to 1% per year

Requires employees be notified of their option to opt out of the plan within 30 days of being hired, and permits opting out of automatic contribution increases

Exempts the State from reimbursing local governments for implementing this mandate under the State Mandates Act