Bill Text: IL SB1233 | 2023-2024 | 103rd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Reinserts the contents of the engrossed bill with the following changes. Provides that the amendatory provisions do not apply to the Chicago school district. Provides that the amendatory provisions apply to a school district with a population of 575 or more teachers that maintain a 457 plan, including a plan established under provisions of the Illinois Pension Code concerning an optional defined contribution benefit. Provides that every applicable school district shall make available to participants more than one financial institution or investment provider to provide services to the school district's 457 plan. Provides that a financial institution or investment provider, by entering into a written agreement, may offer or provide services to a plan offered, established, or maintained by a school district (instead of established or maintained by a school district). Provides that each school district that offers (instead of provides) a 457 plan shall make available to participants more than one financial institution or investment provider that has not entered into a written agreement to provide administration services and that provides services to a 457 plan offered to school districts (instead of that has not entered into a written agreement and that provides services to the school district's 457 plan). Provides that a financial institution or investment provider shall cover all plan administration costs relating to the administration of the 457 plan (instead of relating to the 457 plan). Provides that nothing in the amendatory provisions shall apply to or impact the optional defined contribution benefit established by the Teachers' Retirement System of the State of Illinois under the Illinois Pension Code. Sets forth provisions regarding sharing plan data. Makes grammatical and typographical corrections.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2023-06-26 - House Floor Amendment No. 2 Motion to Concur Referred to Assignments [SB1233 Detail]

Download: Illinois-2023-SB1233-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1233 Introduced 2/2/2023, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED:
105 ILCS 5/22-95 new
Amends the School Code. Provides that a financial institution or investment provider, by entering into a written agreement, may offer or provide services to a plan established or maintained by a school district with an enrollment of at least 1,000 students under Section 457 of the Internal Revenue Code of 1986 if the written agreement is not combined with any other written agreement for the administration of a school district's 457 plan. Provides that each school district that provides a 457 plan shall make available to participants at least 4 financial institutions or investment providers that have not entered into a written agreement and that provide services to the school district's 457 plan. Sets forth requirements for a financial institution or investment provider providing services for a 457 plan.
LRB103 25480 RJT 51829 b
A BILL FOR
SB1233 LRB103 25480 RJT 51829 b
AN ACT concerning education.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The School Code is amended by adding Section
22-95 as follows:
(105 ILCS 5/22-95 new)
Sec. 22-95. Retirement and deferred compensation plans.
(a) This Section applies only to school districts with an
enrollment of at least 1,000 students.
(b) A financial institution or investment provider, by
entering into a written agreement, may offer or provide
services to a plan established or maintained by a school
district under Section 457 of the Internal Revenue Code of
1986 if the written agreement is not combined with any other
written agreement for the administration of a school
district's 457 plan.
Each school district that provides a 457 plan shall make
available to participants, in the manner provided in
subsection (d), a minimum of 4 financial institutions or
investment providers that have not entered into a written
agreement under this subsection (b) and that provide services
to the school district's 457 plan.
(c) A financial institution or investment provider

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providing services for any plan established or maintained by a
school district under Section 457 of the Internal Revenue Code
of 1986 shall:
(1) enter into an agreement with the school district
or the school district's independent compliance
administrator that requires the financial institution or
investment provider to provide, in an electronic format,
all data necessary for the administration of the 457 plan,
as determined by the school district or the school
district's compliance administrator;
(2) provide all data required by the school district
or the school district's compliance administrator to
facilitate disclosure of all fees, charges, expenses,
commissions, compensation, and payments to third parties
related to investments offered under the 457 plan; and
(3) cover all plan administration costs agreed to by
the school district relating to the 457 plan.
(d) A school district that establishes or maintains a plan
under Section 457 of the Internal Revenue Code of 1986 shall
select a minimum of 4 financial institutions or investment
providers, in addition to the financial institution or
investment provider that has entered into a written agreement
under subsection (b), to provide services to the 457 plan. If
fewer than 4 such additional financial institutions or
investment providers are determined to be available or able to
meet the requirements established in this Section, then the

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school district shall select the number of available financial
institutions or investment providers able to meet the school
district's requirements. A financial institution or investment
provider shall be designated a 457 plan provider if the
financial institution or investment provider enters into an
agreement in accordance with subsection (c).