Full Text of HB3361 97th General Assembly
HB3361ham002 97TH GENERAL ASSEMBLY | Rep. Kevin A. McCarthy Filed: 3/16/2011
| | 09700HB3361ham002 | | LRB097 08382 RLJ 53052 a |
|
| 1 | | AMENDMENT TO HOUSE BILL 3361
| 2 | | AMENDMENT NO. ______. Amend House Bill 3361 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Department of Central Management Services | 5 | | Law of the
Civil Administrative Code of Illinois is amended by | 6 | | adding Section 405-520 as follows: | 7 | | (20 ILCS 405/405-520 new) | 8 | | Sec. 405-520. Supplemental employee deferral plan. The | 9 | | Department may establish, administer, manage, and operate a | 10 | | supplemental employee deferral plan to supplement and enhance | 11 | | the retirement income of employees of public school districts | 12 | | and community colleges. As used in this Section, "supplemental | 13 | | employee deferral plan" means a tax deferred annuity described | 14 | | in Section 403(b) of the Internal Revenue Code, including a | 15 | | custodial account described in Section 403(b)(7) of the | 16 | | Internal Revenue Code. The supplemental employee deferral plan |
| | | 09700HB3361ham002 | - 2 - | LRB097 08382 RLJ 53052 a |
|
| 1 | | shall comply with all applicable provisions of Section 403(b) | 2 | | of the Internal Revenue Code. If a school district or community | 3 | | college district elects to participate in the supplemental | 4 | | employee deferral plan, any employee of the school district or | 5 | | community college district who meets the eligibility | 6 | | requirements prescribed by the Department may participate in | 7 | | the plan. | 8 | | Notwithstanding any law to the contrary, participation in | 9 | | the supplemental employee deferral plan authorizes the | 10 | | participant's employer to make salary reductions from the | 11 | | participant's compensation and contribute the salary | 12 | | reductions to the plan. An employer may make employer | 13 | | contributions to the supplemental employee deferral plan if the | 14 | | plan permits. Any compensation deferred under a supplemental | 15 | | employee deferral plan shall continue to be included as regular | 16 | | compensation for the purpose of computing the retirement and | 17 | | pension benefits earned by an employee. As used in this | 18 | | Section, "compensation" includes compensation received in a | 19 | | lump sum for accumulated unused vacation time, personal leave, | 20 | | or sick leave. Employee contributions and earnings on employee | 21 | | contributions are immediately vested. Employer contributions, | 22 | | if any, and the earnings on employer contributions shall vest | 23 | | according to the schedule established in the plan. | 24 | | The supplemental employee deferral plan shall provide for | 25 | | the recovery of any administrative expenses against the | 26 | | earnings from investments or by charging fees equitably |
| | | 09700HB3361ham002 | - 3 - | LRB097 08382 RLJ 53052 a |
|
| 1 | | prorated among the participants or by any other appropriate and | 2 | | equitable method as the Department shall determine. Different | 3 | | methods for recovery of administrative expenses may be provided | 4 | | in relation to the different types of investment programs and | 5 | | the Department may provide for the allocation of administration | 6 | | expenses among varying types of programs for this purpose. | 7 | | The Department may employ services that the Department | 8 | | deems necessary for the operation and administration of the | 9 | | plan and may administer the plan through a third-party vendor. | 10 | | The supplemental employee deferral plan may be invested in any | 11 | | investments as are deemed acceptable by the Department | 12 | | including, but not limited to, life insurance or annuity | 13 | | contracts or mutual funds. All insurance, annuities, mutual | 14 | | funds, or other investments used under this plan must be | 15 | | reviewed and selected by the Department based on a competitive | 16 | | bidding process as established by such specifications and | 17 | | considerations as are deemed appropriate by the Department. | 18 | | The Director shall discharge his or her duties with respect | 19 | | to the supplemental employee deferral plan with the care, | 20 | | skill, prudence, and diligence under the circumstances then | 21 | | prevailing that a prudent person acting in a like capacity and | 22 | | familiar with such matters would use in the conduct of an | 23 | | enterprise of a like character with like aims. | 24 | | Upon the creation of the supplemental employee deferral | 25 | | plan, the Director shall give bond with 2 or more sufficient | 26 | | sureties, payable to and for the benefit of the participants in |
| | | 09700HB3361ham002 | - 4 - | LRB097 08382 RLJ 53052 a |
|
| 1 | | the supplemental employee deferral plan, in the penal sum of | 2 | | $1,000,000, conditioned upon the faithful discharge of his or | 3 | | her duties in relation to the supplemental employee deferral | 4 | | plan. ".
|
|