Illinois General Assembly - Full Text of SB3713
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Full Text of SB3713  97th General Assembly




State of Illinois
2011 and 2012


Introduced 2/10/2012, by Sen. Don Harmon - Heather A. Steans - Suzi Schmidt and Carole Pankau


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.

LRB097 19733 JDS 64993 b






SB3713LRB097 19733 JDS 64993 b

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 of 1986, as
14amended, including a custodial account described in Section
15403(b)(7) of the Internal Revenue Code of 1986, as amended. The
16supplemental employee deferral plan shall comply with all
17applicable provisions of Section 403(b) of the Internal Revenue
18Code of 1986, as amended. If a school district or community
19college elects to participate in the supplemental employee
20deferral plan, any employee of the school district or community
21college who meets the eligibility requirements prescribed by
22the Comptroller may participate in the plan.
23    Notwithstanding any law to the contrary, participation in



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



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1necessary for the operation and administration of the plan and
2may administer the plan thorough a third-party vendor. The
3supplemental employee deferral plan may be invested in any
4investments that are deemed acceptable by the Comptroller
5including, but not limited to, life insurance or annuity
6contracts or mutual funds. All insurance, annuities, mutual
7funds, or other investments used under the plan must be
8reviewed and selected by the Comptroller based on a competitive
9bidding process as established by such specifications and
10considerations as are deemed appropriate by the Comptroller.
11    However, the plan shall permit a school district or
12community college that elects to participate in the
13supplemental employee deferral plan to offer to its employees
14additional investments, as determined by the school district or
15community college, not selected by the Comptroller, provided
16that the additional investments contribute to the recovery of
17administrative expenses and satisfy fee disclosure
18requirements pursuant to terms no more onerous than those
19applicable to the investments selected by the Comptroller.
20    Upon creating the supplemental employee deferral plan, the
21Comptroller shall give bond with 2 or more sufficient sureties,
22payable to and for the benefit of the participants in the
23supplemental employee deferral plan, in the penal sum of
24$1,000,000, conditioned upon the faithful discharge of his or
25her duties in relation to the supplemental employee deferral