Full Text of SB0734 103rd General Assembly
SB0734ham001 103RD GENERAL ASSEMBLY | Rep. Stephanie A. Kifowit Filed: 5/19/2023
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| 1 | | AMENDMENT TO SENATE BILL 734
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 734 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The School Code is amended by adding Section | 5 | | 22-95 as follows: | 6 | | (105 ILCS 5/22-95 new) | 7 | | Sec. 22-95. Retirement and deferred compensation plans. | 8 | | (a) This Section applies only to school districts, other | 9 | | than a school district organized under Article 34, with a | 10 | | full-time licensed teacher population of 575 or more teachers | 11 | | that maintain a 457 plan. Every applicable school district | 12 | | shall make available
to participants more than one financial | 13 | | institution or investment
provider to provide services to the | 14 | | school district's 457 plan. | 15 | | (b) A financial institution or investment provider, by | 16 | | entering into a written agreement, may offer or provide |
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| 1 | | services to a plan offered, established, or maintained by a | 2 | | school district under Section 457 of the Internal Revenue Code | 3 | | of 1986 if the written agreement is not combined with any other | 4 | | written agreement for the administration of the school | 5 | | district's 457 plan. | 6 | | Each school district that offers a 457 plan shall make | 7 | | available to participants, in the manner provided in | 8 | | subsection (d), more than one financial institution or | 9 | | investment provider that has not entered into a written | 10 | | agreement to provide administration services and that provides | 11 | | services to a 457 plan offered to school districts. | 12 | | (c) A financial institution or investment provider | 13 | | providing services for any plan offered, established, or | 14 | | maintained by a school district under Section 457 of the | 15 | | Internal Revenue Code of 1986 shall: | 16 | | (1) enter into an agreement with the school district | 17 | | or the school district's independent compliance | 18 | | administrator that requires the financial institution or | 19 | | investment provider to provide, in an electronic format, | 20 | | all data necessary for the administration of the 457 plan, | 21 | | as determined by the school district or the school | 22 | | district's compliance administrator; | 23 | | (2) provide all data required by the school district | 24 | | or the school district's compliance administrator to | 25 | | facilitate disclosure of all fees, charges, expenses, | 26 | | commissions, compensation, and payments to third parties |
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| 1 | | related to investments offered under the 457 plan; and | 2 | | (3) cover all plan administration costs agreed to by | 3 | | the school district relating to the administration of the | 4 | | 457 plan. | 5 | | (d) A school district that offers, establishes, or | 6 | | maintains a plan under Section 457 of the Internal Revenue | 7 | | Code of 1986 shall select more than one financial institution | 8 | | or investment provider, in addition to the financial | 9 | | institution or investment provider that has entered into a | 10 | | written agreement under subsection (b), to provide services to | 11 | | the 457 plan. A financial institution or investment provider | 12 | | shall be designated a 457 plan provider if the financial | 13 | | institution or investment provider enters into an agreement in | 14 | | accordance with subsection (c). | 15 | | (e) A school district shall have one year after the | 16 | | effective date of this amendatory Act of the 103rd General | 17 | | Assembly to find a 457 plan provider under this Section. | 18 | | (f) Nothing in this Section shall apply to or impact the
| 19 | | optional defined contribution benefit established by the | 20 | | Teachers' Retirement System of the State of Illinois under | 21 | | Section 16-204 of the Illinois Pension Code.
Notwithstanding | 22 | | the foregoing, the Teachers' Retirement System may elect to | 23 | | share plan data for
the 457 plan established pursuant to | 24 | | Section 16-204 of the Illinois Pension Code with the school | 25 | | district, upon request by the school district, in
order to | 26 | | facilitate school districts' compliance with this
Section and |
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| 1 | | Section 457 of the Internal Revenue Code of 1986. If a
school | 2 | | district requests that the Teachers' Retirement System share | 3 | | plan information for the 457 plan established pursuant to | 4 | | Section 16-204 of the Illinois Pension Code, the Teachers' | 5 | | Retirement System may assess a fee on the applicable school
| 6 | | district. ".
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