Full Text of SB0734 103rd General Assembly
SB0734enr 103RD GENERAL ASSEMBLY |
| | SB0734 Enrolled | | LRB103 03178 RPS 48184 b |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 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 | 17 | | services to a plan offered, established, or maintained by a | 18 | | school district under Section 457 of the Internal Revenue Code | 19 | | of 1986 if the written agreement is not combined with any other | 20 | | written agreement for the administration of the school | 21 | | district's 457 plan. | 22 | | Each school district that offers a 457 plan shall make | 23 | | available to participants, in the manner provided in |
| | | SB0734 Enrolled | - 2 - | LRB103 03178 RPS 48184 b |
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| 1 | | subsection (d), more than one financial institution or | 2 | | investment provider that has not entered into a written | 3 | | agreement to provide administration services and that provides | 4 | | services to a 457 plan offered to school districts. | 5 | | (c) A financial institution or investment provider | 6 | | providing services for any plan offered, established, or | 7 | | maintained by a school district under Section 457 of the | 8 | | Internal Revenue Code of 1986 shall: | 9 | | (1) enter into an agreement with the school district | 10 | | or the school district's independent compliance | 11 | | administrator that requires the financial institution or | 12 | | investment provider to provide, in an electronic format, | 13 | | all data necessary for the administration of the 457 plan, | 14 | | as determined by the school district or the school | 15 | | district's compliance administrator; | 16 | | (2) provide all data required by the school district | 17 | | or the school district's compliance administrator to | 18 | | facilitate disclosure of all fees, charges, expenses, | 19 | | commissions, compensation, and payments to third parties | 20 | | related to investments offered under the 457 plan; and | 21 | | (3) cover all plan administration costs agreed to by | 22 | | the school district relating to the administration of the | 23 | | 457 plan. | 24 | | (d) A school district that offers, establishes, or | 25 | | maintains a plan under Section 457 of the Internal Revenue | 26 | | Code of 1986, except for a plan established under Section |
| | | SB0734 Enrolled | - 3 - | LRB103 03178 RPS 48184 b |
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| 1 | | 16-204 of the Illinois Pension Code, shall select more than | 2 | | one financial institution or investment provider, in addition | 3 | | to the financial institution or investment provider that has | 4 | | entered into a written agreement under subsection (b), to | 5 | | provide services to the 457 plan. A financial institution or | 6 | | investment provider shall be designated a 457 plan provider if | 7 | | the financial institution or investment provider enters into | 8 | | an agreement in accordance with subsection (c). | 9 | | (e) A school district shall have one year after the | 10 | | effective date of this amendatory Act of the 103rd General | 11 | | Assembly to find a 457 plan provider under this Section. | 12 | | (f) Nothing in this Section shall apply to or impact the
| 13 | | optional defined contribution benefit established by the | 14 | | Teachers' Retirement System of the State of Illinois under | 15 | | Section 16-204 of the Illinois Pension Code.
Notwithstanding | 16 | | the foregoing, the Teachers' Retirement System may elect to | 17 | | share plan data for
the 457 plan established pursuant to | 18 | | Section 16-204 of the Illinois Pension Code with the school | 19 | | district, upon request by the school district, in
order to | 20 | | facilitate school districts' compliance with this
Section and | 21 | | Section 457 of the Internal Revenue Code of 1986. If a
school | 22 | | district requests that the Teachers' Retirement System share | 23 | | plan information for the 457 plan established pursuant to | 24 | | Section 16-204 of the Illinois Pension Code, the Teachers' | 25 | | Retirement System may assess a fee on the applicable school
| 26 | | district.
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