98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB1401
 
Introduced , by Rep. Elaine Nekritz
 
SYNOPSIS AS INTRODUCED:
 

 
30 ILCS 805/8.37 new
105 ILCS 5/10-20.55 new

     Amends the State Mandates Act. Provides that no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act and that nothing in this amendatory Act overrides the process established under the School Code. Amends the School Code. Provides that if a school  board other than the Chicago Board of Schools offers a 403(b) plan to its officers, employees, or both, or makes contributions to such a plan on behalf of its officers, employees, or both, then the plan sponsor must   act   in accordance with the prudent investor rule when  making plan-related decisions. Sets forth the prudent investor rule and provides that this amendatory Act does not apply to any plan under the Illinois Pension Code. Effective immediately.
  


LRB098 07619 OMW 37691 b

 
 
A BILL FOR
 

  
HB1401LRB098 07619 OMW 37691 b


  
1    AN ACT concerning finance.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  




 
 
4    Section 5. The State Mandates Act is amended by adding 
5Section 8.37 as follows:
 
6    (30 ILCS 805/8.37 new)
7    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 
8of this Act, no reimbursement by the State is required for the 
9implementation of any mandate created by this amendatory Act of 
10the 98th General Assembly. Nothing in this amendatory Act of 
11the 98th General Assembly shall override the process 
12established under Section 22-60 of the School Code.
 
13    Section 10. The School Code is amended by adding Section 
1410-20.55 as follows:
 
15    (105 ILCS 5/10-20.55 new)
16    Sec. 10-20.55. Application of the prudent investor rule to  
17403(b) plans.
18    (a) Beginning January 1, 2015, if a school  board other than 
19the Chicago Board of Schools offers a 403(b) plan to its 
20officers, employees, or both, or makes contributions to such a 
21plan on behalf of its officers, employees, or both, then the 
 
 
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1plan sponsor must   act   in accordance with the prudent investor 
2rule when  making plan-related decisions.
3    (b) For the purposes of this Section, a plan sponsor acts 
4in accordance with the prudent investor rule if he or she acts 
5in good faith and with the care, skill, prudence, diligence, 
6and degree of judgment that an  investor of prudence, 
7discretion, and sound judgment would exercise in the management 
8of his or her own affairs, taking into account all aspects of 
9plan design, including, but not limited to, total delivered 
10fees, surrender charges, and third-party administrator fees.
11    (c) This Section does not apply to any plan authorized or 
12created  under the Illinois Pension Code.



 
13    Section 99. Effective date. This Act takes effect upon 
14becoming law.