Illinois General Assembly - Full Text of HB0153
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Full Text of HB0153  97th General Assembly


Sen. Susan Garrett

Filed: 5/4/2012





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2    AMENDMENT NO. ______. Amend House Bill 153 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 24-107 as follows:
6    (40 ILCS 5/24-107)  (from Ch. 108 1/2, par. 24-107)
7    Sec. 24-107. Local government plans.
8    (a) Any unit of local government or school district may
9establish for its employees a deferred compensation or tax
10sheltered annuity plan program. Participation shall be by
11written agreement between each employee and the legislative
12authority of the unit of local government or school district
13providing for the deferral of such compensation and the
14subsequent investment and administration of such funds.
15    (a-5) Beginning January 1, 2013, any investment provider to
16a deferred compensation or tax sheltered annuity plan offered



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1by a unit of local government or school district to its
2employees shall disclose information in a summary form to plan
3participants for each investment product that the provider
4makes available to plan participants. The summary form shall:
5        (1) be in a format developed in conjunction with
6    organizations representing employees of units of local
7    government and employees of school districts;
8        (2) identify all services, including how those
9    services will be provided and whether they will be provided
10    by a licensed advisor or licensed agent;
11        (3) identify all fees that may be paid by a plan
12    participant;
13        (4) provide the investment-related information that
14    the U.S. Department of Labor requires to be disclosed in
15    its model comparative chart for plans that are subject to
16    the Employee Retirement Income Security Act of 1974
17    (ERISA), in the format specified by the U.S. Department of
18    Labor for the disclosure of that information; and
19        (5) identify (i) all payments that are made to third
20    parties, including all recipients of commissions, other
21    payments, or both, and that are related to the purchase or
22    deposit of the product, (ii) the types of payments those
23    parties are eligible to receive, and (iii) all payments
24    that have been promised to those parties for endorsements,
25    marketing, or promoting the product and that have not been
26    disclosed.



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1    (b) Any unit of local government may establish an
2employer-funded money purchase retirement plan for those of its
3full time employees who are not eligible to participate in any
4pension fund or retirement system established under Articles 2
5through 18 of this Code. Contributions to the plan shall be
6made by the unit of local government only from general purpose
7funds not derived from real property taxes imposed by the unit,
8at a rate to be determined from time to time by the unit of
9local government. However, the rate of employer contribution
10shall be (i) the same for all employees participating in the
11plan, and (ii) not more than 10% of the employee's salary.
12    Any benefits accruing to the participants in a retirement
13plan established under this subsection shall be protected from
14impairment in accordance with Article XIII, Section 5 of the
15Illinois Constitution. However, the unit of local government
16establishing such a plan may terminate it at any time, unless
17it has otherwise contractually agreed with its participating
19    (c) The agency or department designated by the unit of
20local government or school district to establish and administer
21a plan or program authorized under subsection (a) or (b) of
22this Section may invest the assets of the plan in investments
23deemed appropriate by the agency or department, including but
24not limited to life insurance or annuity contracts, and share
25or share certificate accounts of State or federal credit
26unions, the accounts of which are insured as required by the



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1Illinois Credit Union Act or the Federal Credit Union Act,
2whichever is applicable. The payment of employer contributions
3to a retirement plan established under subsection (b), and
4investment and payment to a participant of deferred
5compensation and income or gain thereon, if any, shall not be
6construed to be prohibited uses of the general assets of the
7unit of local government or school district.
8    This Section does not limit the power or authority of any
9unit of local government, school district or any institution
10supported in whole or in part by public funds to establish and
11administer any other deferred compensation plans that may be
12authorized by law and deemed appropriate by the officials of
13such subdivisions or institutions.
14(Source: P.A. 87-794.)
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".