Illinois General Assembly - Full Text of SB1218
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Full Text of SB1218  98th General Assembly

SB1218 98TH GENERAL ASSEMBLY

  
  

 


 
98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1218

 

Introduced 1/30/2013, by Sen. Daniel Biss

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/10-20.55 new
30 ILCS 805/8.37 new

    Amends the School Code. Provides that, beginning January 1, 2015, if a school board other than the Chicago Board of Schools offers a 403(b) plan to its officers, employees, or both, or makes contributions to such a plan on behalf of its officers, employees, or both, then the plan sponsor must act in accordance with the prudent investor rule when making plan-related decisions. Amends the State Mandates Act to require implementation without reimbursement.


LRB098 06370 HLH 36412 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1218LRB098 06370 HLH 36412 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by adding Section
510-20.55 as follows:
 
6    (105 ILCS 5/10-20.55 new)
7    Sec. 10-20.55. Application of the prudent investor rule to
8403(b) plans.
9    (a) Beginning January 1, 2015, if a school board other than
10the Chicago Board of Schools offers a 403(b) plan to its
11officers, employees, or both, or makes contributions to such a
12plan on behalf of its officers, employees, or both, then the
13plan sponsor must act in accordance with the prudent investor
14rule when making plan-related decisions.
15    (b) For the purposes of this Section, a plan sponsor acts
16in accordance with the prudent investor rule if he or she acts
17in good faith and with the care, skill, prudence, diligence,
18and degree of judgment that an investor of prudence,
19discretion, and sound judgment would exercise in the management
20of his or her own affairs, taking into account all aspects of
21plan design, including, but not limited to, total delivered
22fees, surrender charges, and third-party administrator fees.
23    (c) This Section does not apply to any plan authorized or

 

 

SB1218- 2 -LRB098 06370 HLH 36412 b

1created under the Illinois Pension Code.
 
2    Section 90. The State Mandates Act is amended by adding
3Section 8.37 as follows:
 
4    (30 ILCS 805/8.37 new)
5    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8
6of this Act, no reimbursement by the State is required for the
7implementation of any mandate created by this amendatory Act of
8the 98th General Assembly. Nothing in this amendatory Act of
9the 98th General Assembly shall override the process
10established under Section 22-60 of the School Code.