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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Engrossed.html

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SB0734 Engrossed 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 Illinois Pension Code is amended by
changing Section 8-230.1 as follows:
(40 ILCS 5/8-230.1) (from Ch. 108 1/2, par. 8-230.1)
Sec. 8-230.1. Right of employees to contribute for certain
other service. Any employee in the service, after having made
contributions covering a period of 10 or more years to the
annuity and benefit fund herein provided for, may elect to pay
for and receive credit for all annuity purposes for service
theretofore rendered by the employee to the Chicago Transit
Authority created by the Metropolitan Transit Authority Act or
its predecessor public utilities; provided that the last 5
years of service prior to retirement on annuity shall have
been as an employee of the City and a contributor to this Fund.
Such service credit may be paid for and granted on the same
basis and conditions as are applicable in the case of
employees who make payment for past service under the
provisions of Section 8-230, but on the assumption that the
employee's salary throughout all of his or her service with
the Authority or its predecessor public utilities was at the
rate of the employee's salary at the later of the date of his

SB0734 Engrossed - 2 - LRB103 03178 RPS 48184 b
or her entrance or reentrance into the service as a municipal
employee, as applicable. In no event, however, shall such
service be credited if the employee has not forfeited and
relinquished pension credit for service covering such period
under any pension or retirement plan applicable to the
Authority or its predecessor public utilities and instituted
and maintained by the Authority or its predecessor public
utilities for the benefit of its employees.
(Source: P.A. 90-655, eff. 7-30-98.)
Section 90. The State Mandates Act is amended by adding
Section 8.47 as follows:
(30 ILCS 805/8.47 new)
Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 103rd General Assembly.