Bill Amendment: IL SB1233 | 2023-2024 | 103rd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: SCH CD-RETIREMENT PLANS
Status: 2023-06-26 - House Floor Amendment No. 2 Motion to Concur Referred to Assignments [SB1233 Detail]
Download: Illinois-2023-SB1233-House_Amendment_002.html
Bill Title: SCH CD-RETIREMENT PLANS
Status: 2023-06-26 - House Floor Amendment No. 2 Motion to Concur Referred to Assignments [SB1233 Detail]
Download: Illinois-2023-SB1233-House_Amendment_002.html
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1 | AMENDMENT TO SENATE BILL 1233
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2 | AMENDMENT NO. ______. Amend Senate Bill 1233 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The School Code is amended by adding Section | ||||||
5 | 22-95 as follows:
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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
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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
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7 | district. ".
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