Illinois General Assembly - Full Text of SB1233
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Full Text of SB1233  103rd General Assembly




SB1233 EngrossedLRB103 25480 RJT 51829 b

1    AN ACT concerning education.
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 with a
9full-time licensed teacher population of 525 teachers or more.
10    (b) A financial institution or investment provider, by
11entering into a written agreement, may offer or provide
12services to a plan established or maintained by a school
13district under Section 457 of the Internal Revenue Code of
141986 if the written agreement is not combined with any other
15written agreement for the administration of a school
16district's 457 plan.
17    Each school district that provides a 457 plan shall make
18available to participants, in the manner provided in
19subsection (d), more than one financial institution or
20investment provider that has not entered into a written
21agreement under this subsection (b) and that provides services
22to the school district's 457 plan.
23    (c) A financial institution or investment provider



SB1233 Engrossed- 2 -LRB103 25480 RJT 51829 b

1providing services for any plan established or maintained by a
2school district under Section 457 of the Internal Revenue Code
3of 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
19under Section 457 of the Internal Revenue Code of 1986 shall
20select more than one financial institution or investment
21provider, in addition to the financial institution or
22investment provider that has entered into a written agreement
23under subsection (b), to provide services to the 457 plan. A
24financial institution or investment provider shall be
25designated a 457 plan provider if the financial institution or
26investment provider enters in an agreement in accordance with



SB1233 Engrossed- 3 -LRB103 25480 RJT 51829 b

1subsection (c)
2    (e) A school district shall have one year from the
3effective date of this amendatory Act of the 103rd General
4Assembly to find a 457 plan provider under this Section.