Rep. Stephanie A. Kifowit

Filed: 5/19/2023

 

 


 

 


 
10300SB0734ham001LRB103 03178 RJT 62270 a

1
AMENDMENT TO SENATE BILL 734

2    AMENDMENT NO. ______. Amend Senate Bill 734 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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

 

 

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

 

 

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1Section 457 of the Internal Revenue Code of 1986. If a school
2district requests that the Teachers' Retirement System share
3plan information for the 457 plan established pursuant to
4Section 16-204 of the Illinois Pension Code, the Teachers'
5Retirement System may assess a fee on the applicable school
6district.".