97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3361

 

Introduced 2/24/2011, by Rep. Kevin A. McCarthy

 

SYNOPSIS AS INTRODUCED:
 
15 ILCS 405/26 new

    Amends the State Comptroller Act. Authorizes the State Comptroller to create, administer, manage, and operate a supplemental employee deferral plan to supplement and enhance the retirement income of employees of public school districts and community colleges. Sets forth the requirements for a supplemental employee deferral plan.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Comptroller Act is amended by adding
5Section 26 as follows:
 
6    (15 ILCS 405/26 new)
7    Sec. 26. Supplemental Employee Deferral Plan. The
8Comptroller may establish, administer, manage, and operate a
9supplemental employee deferral plan to supplement and enhance
10the retirement income of employees of public school districts
11and community colleges. As used in this Section, "supplemental
12employee deferral plan" means a tax deferred annuity described
13in Section 403(b) of the Internal Revenue Code, including a
14custodial account described in 403(b)(7) of the Internal
15Revenue Code. The supplemental employee deferral plan shall
16comply with all applicable provisions of Section 403(b) of the
17Internal Revenue Code. If a school district or community
18college elects to participate in the supplemental employee
19deferral plan, any employee of the school district or community
20college who meets the eligibility requirements prescribed by
21the Comptroller may participate in the plan.
22    Notwithstanding any law to the contrary, participation in
23the supplemental employee deferral plan authorizes the

 

 

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1participant's employer to make salary reductions from the
2participant's compensation and contribute the salary
3reductions to the plan. An employer may make employer
4contributions to the supplemental employee deferral plan if the
5plan permits. Any compensation deferred under a supplemental
6employee deferral plan shall continue to be included as regular
7compensation for the purpose of computing the retirement and
8pension benefits earned by an employee. As used in this
9Section, "compensation" includes compensation received in a
10lump sum for accumulated unused vacation time, personal leave,
11or sick leave. Employee contributions and earnings on employee
12contributions are immediately vested. Employer contributions,
13if any, and the earnings on employer contributions shall vest
14according to the schedule established in the plan.
15    The supplemental employee deferral plan shall provide for
16the recovery of any administrative expenses against the
17earnings from investments or by charging fees equitably
18prorated among the participants or by any other appropriate and
19equitable method as the Comptroller shall determine. Different
20methods for recovery of administrative expenses may be provided
21in relation to the different types of investment programs and
22the Comptroller may provide for the allocation of
23administration expenses among varying types of programs for
24this purpose.
25    The Comptroller may employ services that he or she deems
26necessary for the operation and administration of the plan and

 

 

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1may administer the plan thorough a third party vendor. The
2Supplemental Employee Deferral Plan may be invested in any
3investments as are deemed acceptable by the Comptroller
4including, but not limited to, life insurance or annuity
5contracts or mutual funds. All insurance, annuities, mutual
6funds, or other investments used under this Plan must be
7reviewed and selected by the Comptroller based on a competitive
8bidding process as established by such specifications and
9considerations as are deemed appropriate by the Comptroller.
10    Upon creating the Supplemental Employee Deferral Plan, the
11Comptroller shall give bond with 2 or more sufficient sureties,
12payable to and for the benefit of the participants in the
13Supplemental Employee Deferral Plan, in the penal sum of
14$1,000,000, conditioned upon the faithful discharge of his or
15her duties in relation to the Supplemental Employee Deferral
16Plan.