Sen. Karina Villa

Filed: 4/30/2024

 

 


 

 


 
10300SB2568sam005LRB103 31865 RJT 72796 a

1
AMENDMENT TO SENATE BILL 2568

2    AMENDMENT NO. ______. Amend Senate Bill 2568, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The School Code is amended by adding Section
622-100 as follows:
 
7    (105 ILCS 5/22-100 new)
8    Sec. 22-100. Retirement savings plans; requirements.
9    (a) This Section applies to contracts entered into or
10renewed on or after the effective date of this amendatory Act
11of the 103rd General Assembly.
12    (b) By July 1, 2026, the school board of each school
13district in the State that offers its employees a retirement
14savings plan established under Section 403(b) of the Internal
15Revenue Code of 1986 may enter into a contract with one or more
16vendors to provide participants with plan investments options.

 

 

10300SB2568sam005- 2 -LRB103 31865 RJT 72796 a

1    Any vendor selected under this Section after the effective
2date of this amendatory Act of the 103rd General Assembly must
3be mutually agreed upon by the affected collective bargaining
4unit or units and the school board and must ensure that:
5        (1) neither it nor the plan investment options it
6    provides impose an administrative asset-based fee in
7    excess of 0.50%;
8        (2) neither it nor the plan investment options it
9    provides impose front-end sales or advisory charges;
10        (3) neither it nor the plan investment options it
11    provides impose surrender charges;
12        (4) the provided plan investment options offer access
13    to all of the following types of funds:
14            (A) a target-date index fund with an expense ratio
15        that is less than or equal to 0.25%;
16            (B) a broad-based domestic index fund with an
17        expense ratio that is less than or equal to 0.10%;
18            (C) a broad-based bond index fund with an expense
19        ratio that is less than or equal to 0.10%; and
20            (D) an international index fund with an expense
21        ratio that is less than or equal to 0.10%.
22    (c) Any vendor offering a plan under this Section may
23charge an investment advisory representative fee not to exceed
240.50% annually.
25    (d) If any new vendor is chosen to administer a retirement
26savings plan that is offered by the school board of a school

 

 

10300SB2568sam005- 3 -LRB103 31865 RJT 72796 a

1district under this Section, an employee of the school
2district may opt out of having the employee's individual
3403(b) mutual fund custodial account or annuity contract
4transferred to that new vendor. This subsection does not apply
5to assets held by the employer in a group contract.
6    (e) A participant who is contributing to a 403(b)
7retirement savings plan account through a salary reduction
8agreement on or before the effective date of this amendatory
9Act of the 103rd General Assembly may continue to make
10contributions even if the account does not meet the
11requirements provided in this Section.
12    (f) If a participant stops contributing to a 403(b)
13retirement savings plan account that does not meet the
14requirements of this Section, then the participant is no
15longer eligible to make salary reduction contributions to the
16403(b) retirement savings plan account that does not meet the
17requirements of this Section.
18    (g) A collective bargaining unit is not liable in the
19selection of a vendor under this Section.".