Will County Gazette

Rep. Mark Batinick, at a hearing for HB117, suggested two tweaks in the penalty for mistakes in annuitance.

Basically, HB 117 amends the Illinois Secure Choice Savings Program Act and “provides that the Act applies to employers with at least one employee, rather than fewer than 25 employees,” according to ilga.gov/legislation.

Batinick suggested that if there have been no mistakes in the annuitance at 35 months, they would be subjected to a 3 percent penalty or none at all. He also questioned the three percent penalty which he thinks would be an added burden to the annuitant.

Lobbyist Bukola M. Bello explained that the 3 percent is viewed “as interest on benefits that would have been invested in the fund had there not been a mistake.”

Batinick was also seeking clarification on how it seems that “if somebody who had overpaid 4 years had gotten such a better deal than somebody who had overpaid 3 years.”

Rep. Will Guzzardi, the primary sponsor of HB117, addressed Batinick's concerns by suggesting further discussions and further legislation on this matter.

Guzzardi suggested to “see this bill as bringing the pension fund in line with various other funds in the state that already function this way.”

Among other changes, the bill also “provides automatic increases in contributions. Makes changes regarding penalties for employers who fail, without reasonable cause, to enroll an employee in the Program.”

Due to matters he raised that have not been resolved, Batinick did not approve of HB117.