Sen. Karina Villa

Filed: 4/16/2024

 

 


 

 


 
10300SB2568sam003LRB103 31865 RJT 72453 a

1
AMENDMENT TO SENATE BILL 2568

2    AMENDMENT NO. ______. Amend Senate Bill 2568, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The School Code is amended by adding Section
622-100 as follows:
 
7    (105 ILCS 5/22-100 new)
8    Sec. 22-100. Retirement savings plans; requirements.
9    (a) This Section applies to contracts entered into,
10extended, or renewed on or after the effective date of this
11amendatory Act of the 103rd General Assembly.
12    (b) By July 1, 2026, the school board of each school
13district in the State that offers its employees a retirement
14savings plan established under Section 403(b) of the Internal
15Revenue Code of 1986 may enter into a contract with one or more
16vendors to provide participants with plan investments options.

 

 

10300SB2568sam003- 2 -LRB103 31865 RJT 72453 a

1The school board shall choose its vendors based solely on the
2best interests of the plan's participants and beneficiaries.
3    A vendor selected under this Section after the effective
4date of this amendatory Act of the 103rd General Assembly must
5be mutually agreed upon by the affected collective bargaining
6unit or units and the school board and must ensure that:
7        (1) neither it nor the plan investment options it
8    provides impose an administrative asset-based fee in
9    excess of 0.50%;
10        (2) neither it nor the plan investment options it
11    provides impose front-end sales or advisory charges;
12        (3) neither it nor the plan investment options it
13    provides impose surrender charges;
14        (4) the provided plan investment options offer access
15    to all of the following types of funds:
16            (A) a target-date index fund with an expense ratio
17        that is less than or equal to 0.25%;
18            (B) a broad-based domestic index fund with an
19        expense ratio that is less than or equal to 0.10%;
20            (C) a broad-based bond index fund with an expense
21        ratio that is less than or equal to 0.10%; and
22            (D) an international index fund with an expense
23        ratio that is less than or equal to 0.10%.
24    (c) A vendor offering a plan under this Section may charge
25an investment advisory representative fee not to exceed 0.50%
26annually.

 

 

10300SB2568sam003- 3 -LRB103 31865 RJT 72453 a

1    (d) If a new vendor is chosen to administer a retirement
2saving plan that is offered by the school board of a school
3district under this Section, an employee of the school
4district may opt out of having the employee's individual
5403(b) assets transferred to that new vendor.".