Bill Text: IL SB1233 | 2023-2024 | 103rd General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
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1 | AN ACT concerning education.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The School Code is amended by adding Section | |||||||||||||||||||
5 | 22-95 as follows:
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6 | (105 ILCS 5/22-95 new) | |||||||||||||||||||
7 | Sec. 22-95. Retirement and deferred compensation plans. | |||||||||||||||||||
8 | (a) This Section applies only to school districts with an | |||||||||||||||||||
9 | enrollment of at least 1,000 students. | |||||||||||||||||||
10 | (b) A financial institution or investment provider, by | |||||||||||||||||||
11 | entering into a written agreement, may offer or provide | |||||||||||||||||||
12 | services to a plan established or maintained by a school | |||||||||||||||||||
13 | district under Section 457 of the Internal Revenue Code of | |||||||||||||||||||
14 | 1986 if the written agreement is not combined with any other | |||||||||||||||||||
15 | written agreement for the administration of a school | |||||||||||||||||||
16 | district's 457 plan. | |||||||||||||||||||
17 | Each school district that provides a 457 plan shall make | |||||||||||||||||||
18 | available to participants, in the manner provided in | |||||||||||||||||||
19 | subsection (d), a minimum of 4 financial institutions or | |||||||||||||||||||
20 | investment providers that have not entered into a written | |||||||||||||||||||
21 | agreement under this subsection (b) and that provide services | |||||||||||||||||||
22 | to the school district's 457 plan. | |||||||||||||||||||
23 | (c) A financial institution or investment provider |
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1 | providing services for any plan established or maintained by a | ||||||
2 | school district under Section 457 of the Internal Revenue Code | ||||||
3 | of 1986 shall: | ||||||
4 | (1) enter into an agreement with the school district | ||||||
5 | or the school district's independent compliance | ||||||
6 | administrator that requires the financial institution or | ||||||
7 | investment provider to provide, in an electronic format, | ||||||
8 | all data necessary for the administration of the 457 plan, | ||||||
9 | as determined by the school district or the school | ||||||
10 | district's compliance administrator; | ||||||
11 | (2) provide all data required by the school district | ||||||
12 | or the school district's compliance administrator to | ||||||
13 | facilitate disclosure of all fees, charges, expenses, | ||||||
14 | commissions, compensation, and payments to third parties | ||||||
15 | related to investments offered under the 457 plan; and | ||||||
16 | (3) cover all plan administration costs agreed to by | ||||||
17 | the school district relating to the 457 plan. | ||||||
18 | (d) A school district that establishes or maintains a plan | ||||||
19 | under Section 457 of the Internal Revenue Code of 1986 shall | ||||||
20 | select a minimum of 4 financial institutions or investment | ||||||
21 | providers, in addition to the financial institution or | ||||||
22 | investment provider that has entered into a written agreement | ||||||
23 | under subsection (b), to provide services to the 457 plan. If | ||||||
24 | fewer than 4 such additional financial institutions or | ||||||
25 | investment providers are determined to be available or able to | ||||||
26 | meet the requirements established in this Section, then the |
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1 | school district shall select the number of available financial | ||||||
2 | institutions or investment providers able to meet the school | ||||||
3 | district's requirements. A financial institution or investment | ||||||
4 | provider shall be designated a 457 plan provider if the | ||||||
5 | financial institution or investment provider enters into an | ||||||
6 | agreement in accordance with subsection (c).
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