SB0734 EnrolledLRB103 03178 RPS 48184 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by adding Section
522-95 as follows:
 
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, other
9than a school district organized under Article 34, with a
10full-time licensed teacher population of 575 or more teachers
11that maintain a 457 plan. Every applicable school district
12shall make available to participants more than one financial
13institution or investment provider to provide services to the
14school district's 457 plan.
15    (b) A financial institution or investment provider, by
16entering into a written agreement, may offer or provide
17services to a plan offered, established, or maintained by a
18school district under Section 457 of the Internal Revenue Code
19of 1986 if the written agreement is not combined with any other
20written agreement for the administration of the school
21district's 457 plan.
22    Each school district that offers a 457 plan shall make
23available to participants, in the manner provided in

 

 

SB0734 Enrolled- 2 -LRB103 03178 RPS 48184 b

1subsection (d), more than one financial institution or
2investment provider that has not entered into a written
3agreement to provide administration services and that provides
4services to a 457 plan offered to school districts.
5    (c) A financial institution or investment provider
6providing services for any plan offered, established, or
7maintained by a school district under Section 457 of the
8Internal Revenue Code of 1986 shall:
9        (1) enter into an agreement with the school district
10    or the school district's independent compliance
11    administrator that requires the financial institution or
12    investment provider to provide, in an electronic format,
13    all data necessary for the administration of the 457 plan,
14    as determined by the school district or the school
15    district's compliance administrator;
16        (2) provide all data required by the school district
17    or the school district's compliance administrator to
18    facilitate disclosure of all fees, charges, expenses,
19    commissions, compensation, and payments to third parties
20    related to investments offered under the 457 plan; and
21        (3) cover all plan administration costs agreed to by
22    the school district relating to the administration of the
23    457 plan.
24    (d) A school district that offers, establishes, or
25maintains a plan under Section 457 of the Internal Revenue
26Code of 1986, except for a plan established under Section

 

 

SB0734 Enrolled- 3 -LRB103 03178 RPS 48184 b

116-204 of the Illinois Pension Code, shall select more than
2one financial institution or investment provider, in addition
3to the financial institution or investment provider that has
4entered into a written agreement under subsection (b), to
5provide services to the 457 plan. A financial institution or
6investment provider shall be designated a 457 plan provider if
7the financial institution or investment provider enters into
8an agreement in accordance with subsection (c).
9    (e) A school district shall have one year after the
10effective date of this amendatory Act of the 103rd General
11Assembly to find a 457 plan provider under this Section.
12    (f) Nothing in this Section shall apply to or impact the
13optional defined contribution benefit established by the
14Teachers' Retirement System of the State of Illinois under
15Section 16-204 of the Illinois Pension Code. Notwithstanding
16the foregoing, the Teachers' Retirement System may elect to
17share plan data for the 457 plan established pursuant to
18Section 16-204 of the Illinois Pension Code with the school
19district, upon request by the school district, in order to
20facilitate school districts' compliance with this Section and
21Section 457 of the Internal Revenue Code of 1986. If a school
22district requests that the Teachers' Retirement System share
23plan information for the 457 plan established pursuant to
24Section 16-204 of the Illinois Pension Code, the Teachers'
25Retirement System may assess a fee on the applicable school
26district.