Illinois General Assembly - Illinois Compiled Statutes

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40 ILCS 5/24-107

(40 ILCS 5/24-107) (from Ch. 108 1/2, par. 24-107)

Sec. 24-107. Local government plans.

(a) Any unit of local government or school district may
establish for its employees a deferred compensation plan.
Participation shall be by written agreement between each employee and
the legislative authority of the unit of local government or school
district providing for the deferral of such compensation and the
subsequent investment and administration of such funds.

(b) Any unit of local government may establish an employer-funded
money purchase retirement plan for those of its full time employees who are
not eligible to participate in any pension fund or retirement system
established under Articles 2 through 18 of this Code.  Contributions to the
plan shall be made by the unit of local government only from general
purpose funds not derived from real property taxes imposed by the unit, at
a rate to be determined from time to time by the unit of local government.
However, the rate of employer contribution shall be (i) the same for all
employees participating in the plan, and (ii) not more than 10% of the
employee's salary.

Any benefits accruing to the participants in a retirement plan
established under this subsection shall be protected from impairment in
accordance with Article XIII, Section 5 of the Illinois Constitution.
However, the unit of local government establishing such a plan may
terminate it at any time, unless it has otherwise contractually agreed
with its participating employees.

(c) The agency or department designated by the unit of local government
or school district to establish and administer a plan or program authorized
under subsection (a) or (b) of this Section may invest the assets of the
plan in investments deemed appropriate by the agency or
department, including but not limited to life insurance or annuity
contracts, and share or share certificate accounts of State or federal
credit unions, the accounts of which are insured as required by the
Illinois Credit Union Act or the Federal Credit Union Act, whichever is
applicable.  The payment of employer contributions to a retirement
plan established under subsection (b), and investment and
payment to a participant of deferred compensation and income or gain
thereon, if any, shall not be construed to be prohibited uses of the
general assets of the unit of local government or school district.

This Section does not limit the power or authority of any unit of
local government, school district or any institution supported in whole
or in part by public funds to establish and administer any other
deferred compensation plans that may be authorized by law and deemed
appropriate by the officials of such subdivisions or institutions.

(d) In administering the deferred compensation plans authorized under this Section, the governing board or administrators of the sponsoring unit of local government or school district shall require that the deferred compensation plan recordkeeper agree that, in performing services with respect to the deferred compensation plan, the recordkeeper: (i) will not use information received as a result of providing services with respect to the deferred compensation plan or the deferred compensation plan's participants to solicit the participants in the deferred compensation plan for the purpose of cross-selling nonplan products and services, unless in response to a request by a participant in the deferred compensation plan; and (ii) will not promote, recommend, endorse, or solicit participants in the deferred compensation plan to purchase any financial products or services outside of the deferred compensation plan, except that links to parts of the recordkeeper's website that are generally available to the public, are about commercial products, and may be encountered by a Plan participant in the regular course of navigating the recordkeeper's website will not constitute a violation of this item (ii).

(Source: P.A. 103-552, eff. 8-11-23.)