Bill Amendment: IL SB2568 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: SCH CD-RETIREMENT SAVINGS PLAN

Status: 2024-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB2568 Detail]

Download: Illinois-2023-SB2568-Senate_Amendment_003.html

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Sen. Karina Villa

Filed: 4/16/2024

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AMENDMENT TO SENATE BILL 2568
AMENDMENT NO. ______. Amend Senate Bill 2568, AS AMENDED,
by replacing everything after the enacting clause with the
following:
"Section 5. The School Code is amended by adding Section
22-100 as follows:
(105 ILCS 5/22-100 new)
Sec. 22-100. Retirement savings plans; requirements.
(a) This Section applies to contracts entered into,
extended, or renewed on or after the effective date of this
amendatory Act of the 103rd General Assembly.
(b) By July 1, 2026, the school board of each school
district in the State that offers its employees a retirement
savings plan established under Section 403(b) of the Internal
Revenue Code of 1986 may enter into a contract with one or more
vendors to provide participants with plan investments options.

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The school board shall choose its vendors based solely on the
best interests of the plan's participants and beneficiaries.
A vendor selected under this Section after the effective
date of this amendatory Act of the 103rd General Assembly must
be mutually agreed upon by the affected collective bargaining
unit or units and the school board and must ensure that:
(1) neither it nor the plan investment options it
provides impose an administrative asset-based fee in
excess of 0.50%;
(2) neither it nor the plan investment options it
provides impose front-end sales or advisory charges;
(3) neither it nor the plan investment options it
provides impose surrender charges;
(4) the provided plan investment options offer access
to all of the following types of funds:
(A) a target-date index fund with an expense ratio
that is less than or equal to 0.25%;
(B) a broad-based domestic index fund with an
expense ratio that is less than or equal to 0.10%;
(C) a broad-based bond index fund with an expense
ratio that is less than or equal to 0.10%; and
(D) an international index fund with an expense
ratio that is less than or equal to 0.10%.
(c) A vendor offering a plan under this Section may charge
an investment advisory representative fee not to exceed 0.50%
annually.

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