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 | |
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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.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | | SB1218 | | LRB098 06370 HLH 36412 b |
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| 1 | | AN ACT concerning local government.
| 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 | | 10-20.55 as follows: | 6 | | (105 ILCS 5/10-20.55 new) | 7 | | Sec. 10-20.55. Application of the prudent investor rule to | 8 | | 403(b) plans. | 9 | | (a) Beginning January 1, 2015, if a school board other than | 10 | | the Chicago Board of Schools offers a 403(b) plan to its | 11 | | officers, employees, or both, or makes contributions to such a | 12 | | plan on behalf of its officers, employees, or both, then the | 13 | | plan sponsor must act in accordance with the prudent investor | 14 | | rule when making plan-related decisions. | 15 | | (b) For the purposes of this Section, a plan sponsor acts | 16 | | in accordance with the prudent investor rule if he or she acts | 17 | | in good faith and with the care, skill, prudence, diligence, | 18 | | and degree of judgment that an investor of prudence, | 19 | | discretion, and sound judgment would exercise in the management | 20 | | of his or her own affairs, taking into account all aspects of | 21 | | plan design, including, but not limited to, total delivered | 22 | | fees, 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 |
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| 1 | | created under the Illinois Pension Code.
| 2 | | Section 90. The State Mandates Act is amended by adding | 3 | | Section 8.37 as follows: | 4 | | (30 ILCS 805/8.37 new) | 5 | | Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 | 6 | | of this Act, no reimbursement by the State is required for the | 7 | | implementation of any mandate created by this amendatory Act of | 8 | | the 98th General Assembly. Nothing in this amendatory Act of | 9 | | the 98th General Assembly shall override the process | 10 | | established under Section 22-60 of the School Code. |
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