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_006.html

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Sen. Karina Villa

Filed: 5/7/2024

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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 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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Any 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) Any vendor offering a plan under this Section may
charge an investment advisory representative fee not to exceed
0.50% annually.
(d) If any new vendor is chosen to administer a retirement
savings plan that is offered by the school board of a school

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district under this Section, an employee of the school
district may opt out of having the employee's individual
403(b) mutual fund custodial account or annuity contract
transferred to that new vendor. This subsection does not apply
to assets held by the employer in a group contract.
(e) A participant who is contributing to a 403(b)
retirement savings plan account through a salary reduction
agreement on or before the effective date of this amendatory
Act of the 103rd General Assembly may continue to make
contributions even if the account does not meet the
requirements provided in this Section.
(f) If a participant stops contributing to a 403(b)
retirement savings plan account that does not meet the
requirements of this Section, then the participant is no
longer eligible to make salary reduction contributions to the
403(b) retirement savings plan account that does not meet the
requirements of this Section.
(g) A collective bargaining unit is not liable in the
selection of a vendor under this Section.
(h) Nothing in this Section may cause or be used to support
liability against a school board or any of a school board's
employees under any theory of law or equity, including, but
not limited to, contract law.
(i) Nothing in this Section may be interpreted to require
a school board to violate any laws, the terms of an existing
403(b) plan document, or the terms of any collective

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