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| Public Act 103-0481 | ||||
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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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, other | ||||
than a school district organized under Article 34, with a | ||||
full-time licensed teacher population of 575 or more teachers | ||||
that maintain a 457 plan. 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. | ||||
(b) 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 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 the school | ||||
district's 457 plan. | ||||
Each school district that offers a 457 plan shall make | ||||
available to participants, in the manner provided in | ||||
subsection (d), 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. | ||
(c) A financial institution or investment provider | ||
providing services for any plan offered, 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 administration of the | ||
457 plan. | ||
(d) A school district that offers, establishes, or | ||
maintains a plan under Section 457 of the Internal Revenue | ||
Code of 1986, except for a plan established under Section | ||
16-204 of the Illinois Pension Code, shall select more than | ||
one financial institution or investment provider, 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. 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). | ||
(e) A school district shall have one year after the | ||
effective date of this amendatory Act of the 103rd General | ||
Assembly to find a 457 plan provider under this Section. | ||
(f) Nothing in this Section shall apply to or impact the
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optional defined contribution benefit established by the | ||
Teachers' Retirement System of the State of Illinois under | ||
Section 16-204 of the Illinois Pension Code.
Notwithstanding | ||
the foregoing, the Teachers' Retirement System may elect to | ||
share plan data for
the 457 plan established pursuant to | ||
Section 16-204 of the Illinois Pension Code with the school | ||
district, upon request by the school district, in
order to | ||
facilitate school districts' compliance with this
Section and | ||
Section 457 of the Internal Revenue Code of 1986. If a
school | ||
district requests that the Teachers' Retirement System share | ||
plan information for the 457 plan established pursuant to | ||
Section 16-204 of the Illinois Pension Code, the Teachers' | ||
Retirement System may assess a fee on the applicable school
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district.
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