SB1233eng 103RD GENERAL ASSEMBLY

SB1233 Engrossed LRB103 25480 RJT 51829 b

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The School Code is amended by adding Section 22-95 as follows:

(105 ILCS 5/22-95 new)

Sec. 22-95. Retirement and deferred compensation plans.

(a) This Section applies only to school districts with a full-time licensed teacher population of 525 teachers or more.

(b) A financial institution or investment provider, by entering into a written agreement, may offer or provide services to a plan established or maintained by a school district under Section 457 of the Internal Revenue Code of 1986 if the written agreement is not combined with any other written agreement for the administration of a school district's 457 plan.

Each school district that provides a 457 plan shall make available to participants, in the manner provided in subsection (d), more than one financial institution or investment provider that has not entered into a written agreement under this subsection (b) and that provides services to the school district's 457 plan.

(c) A financial institution or investment provider providing services for any plan established or maintained by a school district under Section 457 of the Internal Revenue Code of 1986 shall:

(1) enter into an agreement with the school district or the school district's independent compliance administrator that requires the financial institution or investment provider to provide, in an electronic format, all data necessary for the administration of the 457 plan, as determined by the school district or the school district's compliance administrator;

(2) provide all data required by the school district or the school district's compliance administrator to facilitate disclosure of all fees, charges, expenses, commissions, compensation, and payments to third parties related to investments offered under the 457 plan; and

(3) cover all plan administration costs agreed to by the school district relating to the 457 plan.

(d) A school district that establishes or maintains a plan under Section 457 of the Internal Revenue Code of 1986 shall select more than one financial institution or investment provider, in addition to the financial institution or investment provider that has entered into a written agreement under subsection (b), to provide services to the 457 plan. A financial institution or investment provider shall be designated a 457 plan provider if the financial institution or investment provider enters in an agreement in accordance with subsection (c)

(e) A school district shall have one year from the effective date of this amendatory Act of the 103rd General Assembly to find a 457 plan provider under this Section.