Sen. Karina Villa
Filed: 4/30/2024
 
 
 




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1
AMENDMENT TO SENATE BILL 2568


2 AMENDMENT NO. ______. Amend Senate Bill 2568, AS AMENDED, 
3by replacing everything after the enacting clause with the 
4following:

5 "Section 5. The School Code is amended by adding Section 
622-100 as follows:

7 (105 ILCS 5/22-100 new)
8 Sec. 22-100. Retirement savings plans; requirements. 
9 (a) This Section applies to contracts entered into or 
10renewed on or after the effective date of this amendatory Act 
11of the 103rd General Assembly.
12 (b) By July 1, 2026, the school board of each school 
13district in the State that offers its employees a retirement 
14savings plan established under Section 403(b) of the Internal 
15Revenue Code of 1986 may enter into a contract with one or more 
16vendors to provide participants with plan investments options.
 
 
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1 Any vendor selected under this Section after the effective 
2date of this amendatory Act of the 103rd General Assembly must 
3be mutually agreed upon by the affected collective bargaining 
4unit or units and the school board and must ensure that:
5  (1) neither it nor the plan investment options it 
6 provides impose an administrative asset-based fee in 
7 excess of 0.50%;
8  (2) neither it nor the plan investment options it 
9 provides impose front-end sales or advisory charges;
10  (3) neither it nor the plan investment options it 
11 provides impose surrender charges;
12  (4) the provided plan investment options offer access 
13 to all of the following types of funds:
14   (A) a target-date index fund with an expense ratio 
15 that is less than or equal to 0.25%;
16   (B) a broad-based domestic index fund with an 
17 expense ratio that is less than or equal to 0.10%;
18   (C) a broad-based bond index fund with an expense 
19 ratio that is less than or equal to 0.10%; and
20   (D) an international index fund with an expense 
21 ratio that is less than or equal to 0.10%.
22 (c) Any vendor offering a plan under this Section may 
23charge an investment advisory representative fee not to exceed 
240.50% annually.
25 (d) If any new vendor is chosen to administer a retirement 
26savings plan that is offered by the school board of a school 
 
 
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