98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1218
 
Introduced 1/30/2013, by Sen. Daniel Biss
 
SYNOPSIS AS INTRODUCED:
 

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

     Amends the School Code.  Provides that, beginning January 1, 2015,  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.   Amends the State Mandates Act to require implementation without reimbursement.
  


LRB098 06370 HLH 36412 b

FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
SB1218LRB098 06370 HLH 36412 b


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




 
 
4    Section 5. The School Code is amended by adding Section 
510-20.55 as follows:
 
6    (105 ILCS 5/10-20.55 new)
7    Sec. 10-20.55. Application of the prudent investor rule to  
8403(b) plans.
9    (a) Beginning January 1, 2015, if a school  board other than 
10the Chicago Board of Schools offers a 403(b) plan to its 
11officers, employees, or both, or makes contributions to such a 
12plan on behalf of its officers, employees, or both, then the 
13plan sponsor must   act   in accordance with the prudent investor 
14rule when  making plan-related decisions.
15    (b) For the purposes of this Section, a plan sponsor acts 
16in accordance with the prudent investor rule if he or she acts 
17in good faith and with the care, skill, prudence, diligence, 
18and degree of judgment that an  investor of prudence, 
19discretion, and sound judgment would exercise in the management 
20of his or her own affairs, taking into account all aspects of 
21plan design, including, but not limited to, total delivered 
22fees, surrender charges, and third-party administrator fees.
23    (c) This Section does not apply to any plan authorized or 
 
 
SB1218- 2 -LRB098 06370 HLH 36412 b

1created  under the Illinois Pension Code.



 
2    Section 90. The State Mandates Act is amended by adding 
3Section 8.37 as follows:
 
4    (30 ILCS 805/8.37 new)
5    Sec. 8.37. Exempt mandate. Notwithstanding Sections 6 and 8 
6of this Act, no reimbursement by the State is required for the 
7implementation of any mandate created by this amendatory Act of 
8the 98th General Assembly.  Nothing in this amendatory Act of 
9the 98th General Assembly shall override the process 
10established under Section 22-60 of the School Code.