Bill Text: IL SB0734 | 2023-2024 | 103rd General Assembly | Chaptered

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Bill Title: Amends the School Code. Specifies that the provisions apply to a school district with a full-time licensed teacher population of 575 or more teachers that maintain a 457 plan, except for the Chicago school district. Provides that every applicable school district shall make available to participants more than one financial institution or investment provider to provide services to the school district's 457 plan. Provides that a financial institution or investment provider, by entering into a written agreement, may offer or provide services to a plan offered, established, or maintained by a school district. Provides that each school district that offers a 457 plan shall make available to participants more than one financial institution or investment provider that has not entered into a written agreement to provide administration services and that provides services to a 457 plan offered to school districts. Provides that a financial institution or investment provider shall cover all plan administration costs agreed to by the school district relating to the administration of the 457 plan. Provides that nothing in the amendatory provisions shall apply to or impact the optional defined contribution benefit established by the Teachers' Retirement System of the State of Illinois under the Illinois Pension Code. Sets forth provisions regarding sharing plan data.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2023-08-04 - Public Act . . . . . . . . . 103-0481 [SB0734 Detail]

Download: Illinois-2023-SB0734-Chaptered.html

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Public Act 103-0481
SB0734 Enrolled LRB103 03178 RPS 48184 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by adding Section
22-95 as follows:
(105 ILCS 5/22-95 new)
Sec. 22-95. Retirement and deferred compensation plans.
(a) This Section applies only to school districts, other
than a school district organized under Article 34, with a
full-time licensed teacher population of 575 or more teachers
that maintain a 457 plan. Every applicable school district
shall make available to participants more than one financial
institution or investment provider to provide services to the
school district's 457 plan.
(b) A financial institution or investment provider, by
entering into a written agreement, may offer or provide
services to a plan offered, established, or maintained by a
school district under Section 457 of the Internal Revenue Code
of 1986 if the written agreement is not combined with any other
written agreement for the administration of the school
district's 457 plan.
Each school district that offers a 457 plan shall make
available to participants, in the manner provided in

subsection (d), more than one financial institution or
investment provider that has not entered into a written
agreement to provide administration services and that provides
services to a 457 plan offered to school districts.
(c) A financial institution or investment provider
providing services for any plan offered, established, or
maintained by a school district under Section 457 of the
Internal Revenue Code of 1986 shall:
(1) enter into an agreement with the school district
or the school district's independent compliance
administrator that requires the financial institution or
investment provider to provide, in an electronic format,
all data necessary for the administration of the 457 plan,
as determined by the school district or the school
district's compliance administrator;
(2) provide all data required by the school district
or the school district's compliance administrator to
facilitate disclosure of all fees, charges, expenses,
commissions, compensation, and payments to third parties
related to investments offered under the 457 plan; and
(3) cover all plan administration costs agreed to by
the school district relating to the administration of the
457 plan.
(d) A school district that offers, establishes, or
maintains a plan under Section 457 of the Internal Revenue
Code of 1986, except for a plan established under Section

16-204 of the Illinois Pension Code, shall select more than
one financial institution or investment provider, in addition
to the financial institution or investment provider that has
entered into a written agreement under subsection (b), to
provide services to the 457 plan. A financial institution or
investment provider shall be designated a 457 plan provider if
the financial institution or investment provider enters into
an agreement in accordance with subsection (c).
(e) A school district shall have one year after the
effective date of this amendatory Act of the 103rd General
Assembly to find a 457 plan provider under this Section.
(f) Nothing in this Section shall apply to or impact the
optional defined contribution benefit established by the
Teachers' Retirement System of the State of Illinois under
Section 16-204 of the Illinois Pension Code. Notwithstanding
the foregoing, the Teachers' Retirement System may elect to
share plan data for the 457 plan established pursuant to
Section 16-204 of the Illinois Pension Code with the school
district, upon request by the school district, in order to
facilitate school districts' compliance with this Section and
Section 457 of the Internal Revenue Code of 1986. If a school
district requests that the Teachers' Retirement System share
plan information for the 457 plan established pursuant to
Section 16-204 of the Illinois Pension Code, the Teachers'
Retirement System may assess a fee on the applicable school
district.