Full Text of SB1233 103rd General Assembly
SB1233ham002 103RD GENERAL ASSEMBLY | Rep. Stephanie A. Kifowit Filed: 5/5/2023
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| 1 | | AMENDMENT TO SENATE BILL 1233
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1233 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, including a plan established under | 12 | | Section 16-204 of the Illinois Pension Code. Every applicable | 13 | | school district shall make available
to participants more than | 14 | | one financial institution or investment
provider to provide | 15 | | services to the school district's 457 plan. | 16 | | (b) A financial institution or investment provider, by |
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| 1 | | entering into a written agreement, may offer or provide | 2 | | services to a plan offered, established, or maintained by a | 3 | | school district under Section 457 of the Internal Revenue Code | 4 | | of 1986 if the written agreement is not combined with any other | 5 | | written agreement for the administration of the school | 6 | | district's 457 plan. | 7 | | Each school district that offers a 457 plan shall make | 8 | | available to participants, in the manner provided in | 9 | | subsection (d), more than one financial institution or | 10 | | investment provider that has not entered into a written | 11 | | agreement to provide administration services and that provides | 12 | | services to a 457 plan offered to school districts. | 13 | | (c) A financial institution or investment provider | 14 | | providing services for any plan offered, established, or | 15 | | maintained by a school district under Section 457 of the | 16 | | Internal Revenue Code of 1986 shall: | 17 | | (1) enter into an agreement with the school district | 18 | | or the school district's independent compliance | 19 | | administrator that requires the financial institution or | 20 | | investment provider to provide, in an electronic format, | 21 | | all data necessary for the administration of the 457 plan, | 22 | | as determined by the school district or the school | 23 | | district's compliance administrator; | 24 | | (2) provide all data required by the school district | 25 | | or the school district's compliance administrator to | 26 | | facilitate disclosure of all fees, charges, expenses, |
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| 1 | | commissions, compensation, and payments to third parties | 2 | | related to investments offered under the 457 plan; and | 3 | | (3) cover all plan administration costs agreed to by | 4 | | the school district relating to the administration of the | 5 | | 457 plan. | 6 | | (d) A school district that offers, establishes, or | 7 | | maintains a plan under Section 457 of the Internal Revenue | 8 | | Code of 1986 shall select more than one financial institution | 9 | | or investment provider, in addition to the financial | 10 | | institution or investment provider that has entered into a | 11 | | written agreement under subsection (b), to provide services to | 12 | | the 457 plan. A financial institution or investment provider | 13 | | shall be designated a 457 plan provider if the financial | 14 | | institution or investment provider enters into an agreement in | 15 | | accordance with subsection (c). | 16 | | (e) A school district shall have one year from the | 17 | | effective date of this amendatory Act of the 103rd General | 18 | | Assembly to find a 457 plan provider under this Section. | 19 | | (f) Nothing in this Section shall apply to or impact the
| 20 | | optional defined contribution benefit established by the | 21 | | Teachers' Retirement System of the State of Illinois under | 22 | | Section 16-204 of the Illinois Pension Code.
Notwithstanding | 23 | | the foregoing, the Teachers' Retirement System may elect to | 24 | | share plan data for
the 457 plan established pursuant to | 25 | | Section 16-204 of the Illinois Pension Code with the school | 26 | | district, upon request by the school district, in
order to |
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| 1 | | facilitate school districts' compliance with this
Section and | 2 | | Section 457 of the Internal Revenue Code of 1986. If a
school | 3 | | district requests that the Teachers' Retirement System share | 4 | | plan information for the 457 plan established pursuant to | 5 | | Section 16-204 of the Illinois Pension Code, the Teachers' | 6 | | Retirement System may assess a fee on the applicable school
| 7 | | district. ".
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