Full Text of HB3865 97th General Assembly
HB3865sam001 97TH GENERAL ASSEMBLY | Sen. Susan Garrett Filed: 4/27/2012
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| 1 | | AMENDMENT TO HOUSE BILL 3865
| 2 | | AMENDMENT NO. ______. Amend House Bill 3865 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing 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
| 9 | | establish for its employees a deferred compensation or tax | 10 | | sheltered annuity plan program .
Participation shall be by | 11 | | written agreement between each employee and
the legislative | 12 | | authority of the unit of local government or school
district | 13 | | providing for the deferral of such compensation and the
| 14 | | subsequent investment and administration of such funds.
| 15 | | (a-5) Beginning January 1, 2013, any investment provider to | 16 | | a deferred compensation or tax sheltered annuity plan offered |
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| 1 | | by a unit of local government or school district to its | 2 | | employees shall disclose information in a summary form to plan | 3 | | participants for each investment product that the provider | 4 | | makes 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 | 2 | | employer-funded
money purchase retirement plan for those of its | 3 | | full time employees who are
not eligible to participate in any | 4 | | pension fund or retirement system
established under Articles 2 | 5 | | through 18 of this Code. Contributions to the
plan shall be | 6 | | made by the unit of local government only from general
purpose | 7 | | funds not derived from real property taxes imposed by the unit, | 8 | | at
a rate to be determined from time to time by the unit of | 9 | | local government.
However, the rate of employer contribution | 10 | | shall be (i) the same for all
employees participating in the | 11 | | plan, and (ii) not more than 10% of the
employee's salary.
| 12 | | Any benefits accruing to the participants in a retirement | 13 | | plan
established under this subsection shall be protected from | 14 | | impairment in
accordance with Article XIII, Section 5 of the | 15 | | Illinois Constitution.
However, the unit of local government | 16 | | establishing such a plan may
terminate it at any time, unless | 17 | | it has otherwise contractually agreed
with its participating | 18 | | employees.
| 19 | | (c) The agency or department designated by the unit of | 20 | | local government
or school district to establish and administer | 21 | | a plan or program authorized
under subsection (a) or (b) of | 22 | | this Section may invest the assets of the
plan in investments | 23 | | deemed appropriate by the agency or
department, including but | 24 | | not limited to life insurance or annuity
contracts, and share | 25 | | or share certificate accounts of State or federal
credit | 26 | | unions, the accounts of which are insured as required by the
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| 1 | | Illinois Credit Union Act or the Federal Credit Union Act, | 2 | | whichever is
applicable. The payment of employer contributions | 3 | | to a retirement
plan established under subsection (b), and | 4 | | investment and
payment to a participant of deferred | 5 | | compensation and income or gain
thereon, if any, shall not be | 6 | | construed to be prohibited uses of the
general assets of the | 7 | | unit of local government or school district.
| 8 | | This Section does not limit the power or authority of any | 9 | | unit of
local government, school district or any institution | 10 | | supported in whole
or in part by public funds to establish and | 11 | | administer any other
deferred compensation plans that may be | 12 | | authorized by law and deemed
appropriate by the officials of | 13 | | such subdivisions or institutions.
| 14 | | (Source: P.A. 87-794.)
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.".
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