Bill Text: IL HB3361 | 2011-2012 | 97th General Assembly | Amended

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Bill Title: 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.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Failed) 2013-01-08 - Session Sine Die [HB3361 Detail]

Download: Illinois-2011-HB3361-Amended.html

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Rep. Kevin A. McCarthy

Filed: 3/16/2011

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AMENDMENT TO HOUSE BILL 3361
AMENDMENT NO. ______. Amend House Bill 3361 by replacing
everything after the enacting clause with the following:
"Section 5. The Department of Central Management Services
Law of the Civil Administrative Code of Illinois is amended by
adding Section 405-520 as follows:
(20 ILCS 405/405-520 new)
Sec. 405-520. Supplemental employee deferral plan. The
Department may establish, 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. As used in this Section, "supplemental
employee deferral plan" means a tax deferred annuity described
in Section 403(b) of the Internal Revenue Code, including a
custodial account described in Section 403(b)(7) of the
Internal Revenue Code. The supplemental employee deferral plan

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shall comply with all applicable provisions of Section 403(b)
of the Internal Revenue Code. If a school district or community
college district elects to participate in the supplemental
employee deferral plan, any employee of the school district or
community college district who meets the eligibility
requirements prescribed by the Department may participate in
the plan.
Notwithstanding any law to the contrary, participation in
the supplemental employee deferral plan authorizes the
participant's employer to make salary reductions from the
participant's compensation and contribute the salary
reductions to the plan. An employer may make employer
contributions to the supplemental employee deferral plan if the
plan permits. Any compensation deferred under a supplemental
employee deferral plan shall continue to be included as regular
compensation for the purpose of computing the retirement and
pension benefits earned by an employee. As used in this
Section, "compensation" includes compensation received in a
lump sum for accumulated unused vacation time, personal leave,
or sick leave. Employee contributions and earnings on employee
contributions are immediately vested. Employer contributions,
if any, and the earnings on employer contributions shall vest
according to the schedule established in the plan.
The supplemental employee deferral plan shall provide for
the recovery of any administrative expenses against the
earnings from investments or by charging fees equitably

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prorated among the participants or by any other appropriate and
equitable method as the Department shall determine. Different
methods for recovery of administrative expenses may be provided
in relation to the different types of investment programs and
the Department may provide for the allocation of administration
expenses among varying types of programs for this purpose.
The Department may employ services that the Department
deems necessary for the operation and administration of the
plan and may administer the plan through a third-party vendor.
The supplemental employee deferral plan may be invested in any
investments as are deemed acceptable by the Department
including, but not limited to, life insurance or annuity
contracts or mutual funds. All insurance, annuities, mutual
funds, or other investments used under this plan must be
reviewed and selected by the Department based on a competitive
bidding process as established by such specifications and
considerations as are deemed appropriate by the Department.
The Director shall discharge his or her duties with respect
to the supplemental employee deferral plan with the care,
skill, prudence, and diligence under the circumstances then
prevailing that a prudent person acting in a like capacity and
familiar with such matters would use in the conduct of an
enterprise of a like character with like aims.
Upon the creation of the supplemental employee deferral
plan, the Director shall give bond with 2 or more sufficient
sureties, payable to and for the benefit of the participants in

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the supplemental employee deferral plan, in the penal sum of
$1,000,000, conditioned upon the faithful discharge of his or
her duties in relation to the supplemental employee deferral
plan.".