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


Rep. Stephanie A. Kifowit

Filed: 5/2/2023





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2    AMENDMENT NO. ______. Amend Senate Bill 1233 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, including a plan established under
12Section 16-204 of the Illinois Pension Code. Every applicable
13school district shall make available to participants more than
14one financial institution or investment provider to provide
15services to the school district's 457 plan.
16    (b) A financial institution or investment provider, by



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



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



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1district's independent compliance administrator, upon request
2by the school district, in order to facilitate school
3districts' compliance with this Section and Section 457 of the
4Internal Revenue Code of 1986. If a school district requests
5the Teachers' Retirement System share plan contribution
6information for the 457 plan established pursuant to Section
716-204 of the Illinois Pension Code, the Teachers' Retirement
8System may assess a fee to the applicable school district.".