Full Text of SB3713 097th General Assembly
SB3713 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB3713 Introduced 2/10/2012, by Sen. Don Harmon - Heather A. Steans - Suzi Schmidt and Carole Pankau SYNOPSIS AS INTRODUCED: |
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Amends the State Comptroller Act. Authorizes the State Comptroller to create, administer, manage, and operate a supplemental employee deferral plan to supplement and enhance the retirement income of employees of public school districts and community colleges. Sets forth the requirements for a supplemental employee deferral plan.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | | SB3713 | | LRB097 19733 JDS 64993 b |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Comptroller Act is amended by adding | 5 | | Section 26 as follows: | 6 | | (15 ILCS 405/26 new) | 7 | | Sec. 26. Supplemental Employee Deferral Plan. The | 8 | | Comptroller may establish, administer, manage, and operate a | 9 | | supplemental employee deferral plan to supplement and enhance | 10 | | the retirement income of employees of public school districts | 11 | | and community colleges. As used in this Section, "supplemental | 12 | | employee deferral plan" means a tax deferred annuity described | 13 | | in Section 403(b) of the Internal Revenue Code of 1986, as | 14 | | amended, including a custodial account described in Section | 15 | | 403(b)(7) of the Internal Revenue Code of 1986, as amended. The | 16 | | supplemental employee deferral plan shall comply with all | 17 | | applicable provisions of Section 403(b) of the Internal Revenue | 18 | | Code of 1986, as amended. If a school district or community | 19 | | college elects to participate in the supplemental employee | 20 | | deferral plan, any employee of the school district or community | 21 | | college who meets the eligibility requirements prescribed by | 22 | | the Comptroller may participate in the plan. | 23 | | Notwithstanding any law to the contrary, participation in |
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| 1 | | the supplemental employee deferral plan authorizes the | 2 | | participant's employer to make salary reductions from the | 3 | | participant's compensation and contribute the salary | 4 | | reductions to the plan. An employer may make employer | 5 | | contributions to the supplemental employee deferral plan if the | 6 | | plan permits. Any compensation deferred under a supplemental | 7 | | employee deferral plan shall continue to be included as regular | 8 | | compensation for the purpose of computing the retirement and | 9 | | pension benefits earned by an employee. As used in this | 10 | | Section, "compensation" includes compensation received in a | 11 | | lump sum for accumulated unused vacation time, personal leave, | 12 | | or sick leave. Employee contributions and earnings on employee | 13 | | contributions are immediately vested. Employer contributions, | 14 | | if any, and the earnings on employer contributions shall vest | 15 | | according to the schedule established in the plan. | 16 | | The supplemental employee deferral plan shall provide for | 17 | | the recovery of any administrative expenses against the | 18 | | earnings from investments or by charging fees equitably | 19 | | prorated among the participants or by any other appropriate and | 20 | | equitable method as the Comptroller shall determine. Different | 21 | | methods for recovery of administrative expenses may be provided | 22 | | in relation to the different types of investment programs, and | 23 | | the Comptroller may provide for the allocation of | 24 | | administration expenses among varying types of programs for | 25 | | this purpose. | 26 | | The Comptroller may employ services that he or she deems |
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| 1 | | necessary for the operation and administration of the plan and | 2 | | may administer the plan thorough a third-party vendor. The | 3 | | supplemental employee deferral plan may be invested in any | 4 | | investments that are deemed acceptable by the Comptroller | 5 | | including, but not limited to, life insurance or annuity | 6 | | contracts or mutual funds. All insurance, annuities, mutual | 7 | | funds, or other investments used under the plan must be | 8 | | reviewed and selected by the Comptroller based on a competitive | 9 | | bidding process as established by such specifications and | 10 | | considerations as are deemed appropriate by the Comptroller. | 11 | | However, the plan shall permit a school district or | 12 | | community college that elects to participate in the | 13 | | supplemental employee deferral plan to offer to its employees | 14 | | additional investments, as determined by the school district or | 15 | | community college, not selected by the Comptroller, provided | 16 | | that the additional investments contribute to the recovery of | 17 | | administrative expenses and satisfy fee disclosure | 18 | | requirements pursuant to terms no more onerous than those | 19 | | applicable to the investments selected by the Comptroller. | 20 | | Upon creating the supplemental employee deferral plan, the | 21 | | Comptroller shall give bond with 2 or more sufficient sureties, | 22 | | payable to and for the benefit of the participants in the | 23 | | supplemental employee deferral plan, in the penal sum of | 24 | | $1,000,000, conditioned upon the faithful discharge of his or | 25 | | her duties in relation to the supplemental employee deferral | 26 | | plan.
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