Bill Text: IL SB1233 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Reinserts the contents of the engrossed bill with the following changes. Provides that the amendatory provisions do not apply to the Chicago school district. Provides that the amendatory provisions apply to a school district with a population of 575 or more teachers that maintain a 457 plan, including a plan established under provisions of the Illinois Pension Code concerning an optional defined contribution benefit. 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 (instead of established or maintained by a school district). Provides that each school district that offers (instead of provides) 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 (instead of that has not entered into a written agreement and that provides services to the school district's 457 plan). Provides that a financial institution or investment provider shall cover all plan administration costs relating to the administration of the 457 plan (instead of relating to 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. Makes grammatical and typographical corrections.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2023-06-26 - House Floor Amendment No. 2 Motion to Concur Referred to Assignments [SB1233 Detail]

Download: Illinois-2023-SB1233-Engrossed.html

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SB1233 Engrossed LRB103 25480 RJT 51829 b
AN ACT concerning education.
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 with a
full-time licensed teacher population of 525 teachers or more.
(b) A financial institution or investment provider, by
entering into a written agreement, may offer or provide
services to a plan 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 a school
district's 457 plan.
Each school district that provides 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 under this subsection (b) and that provides services
to the school district's 457 plan.
(c) A financial institution or investment provider

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providing services for any plan 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 457 plan.
(d) A school district that establishes or maintains a plan
under Section 457 of the Internal Revenue Code of 1986 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 in an agreement in accordance with

SB1233 Engrossed - 3 - LRB103 25480 RJT 51829 b
subsection (c)
(e) A school district shall have one year from the
effective date of this amendatory Act of the 103rd General
Assembly to find a 457 plan provider under this Section.