Full Text of HB5495 97th General Assembly
HB5495eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Mandates Act is amended by adding | 5 | | Section 8.36 as follows: | 6 | | (30 ILCS 805/8.36 new) | 7 | | Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8 | 8 | | of this Act, no reimbursement by the State is required for the | 9 | | implementation of any mandate created by this amendatory Act of | 10 | | the 97th General Assembly. Nothing in this amendatory Act of | 11 | | the 97th General Assembly shall override the process | 12 | | established under Section 22-60 of the School Code. | 13 | | Section 10. The Counties Code is amended by adding the | 14 | | heading of Div. 6-35 and Section 6-35000 as follows: | 15 | | (55 ILCS 5/Div. 6-35 heading new) | 16 | | Division 6-35. Application of the Prudent Investor Rule | 17 | | to Eligible Deferred Compensation Plans | 18 | | (55 ILCS 5/6-35000 new) | 19 | | Sec. 6-35000. Application of the prudent investor rule to | 20 | | 457(b) plans. |
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| 1 | | (a) Beginning January 1, 2015, if a county offers a 457(b) | 2 | | plan to its officers, employees, or both, or makes | 3 | | contributions to such a plan on behalf of its officers, | 4 | | employees, or both, then the plan sponsor must act in | 5 | | accordance with the prudent investor rule when making | 6 | | plan-related decisions. | 7 | | (b) For the purposes of this Section, a plan sponsor acts | 8 | | in accordance with the prudent investor rule if he or she acts | 9 | | in good faith and with the care, skill, prudence, diligence, | 10 | | and degree of judgment that an investor of prudence, | 11 | | discretion, and good judgment would exercise in the management | 12 | | of his or her own affairs, taking into account all aspects of | 13 | | plan design, including, but not limited to, total delivered | 14 | | fees and surrender charges. The intent of this legislation is | 15 | | for the plan sponsor to consolidate to a single provider. | 16 | | (c) A home rule unit may not regulate a county board's or | 17 | | its agents' plan-related fiduciary obligations in a manner that | 18 | | is less restrictive than the regulation by the State of those | 19 | | obligations under subsection (a). This subsection (c) is a | 20 | | limitation under subsection (i) of Section 6 of Article VII of | 21 | | the Illinois Constitution on the concurrent exercise by home | 22 | | rule units of powers and functions exercised by the State. | 23 | | (d) This Section does not apply to any plan authorized or | 24 | | created under the Illinois Pension Code. | 25 | | Section 15. The Illinois Municipal Code is amended by |
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| 1 | | adding Section 8-1-20 as follows: | 2 | | (65 ILCS 5/8-1-20 new) | 3 | | Sec. 8-1-20. Application of the prudent investor rule to | 4 | | 457(b) plans. | 5 | | (a) Beginning January 1, 2015, if a municipality offers a | 6 | | 457(b) plan to its officers, employees, or both, or makes | 7 | | contributions to such a plan on behalf of its officers, | 8 | | employees, or both, then the plan sponsor must act in | 9 | | accordance with the prudent investor rule when making | 10 | | plan-related decisions. | 11 | | (b) For the purposes of this Section, a plan sponsor acts | 12 | | in accordance with the prudent investor rule if he or she acts | 13 | | in good faith and with the care, skill, prudence, diligence, | 14 | | and degree of judgment that an investor of prudence, | 15 | | discretion, and sound judgment would exercise in the management | 16 | | of his or her own affairs, taking into account all aspects of | 17 | | plan design, including, but not limited to, total delivered | 18 | | fees and surrender charges. The intent of this legislation is | 19 | | for the plan sponsor to consolidate to a single provider. | 20 | | (c) A home rule unit may not regulate a municipal corporate | 21 | | authority's or its agents' plan-related fiduciary obligations | 22 | | in a manner that is less restrictive than the regulation by the | 23 | | State of those obligations under subsection (a). This | 24 | | subsection (c) is a limitation under subsection (i) of Section | 25 | | 6 of Article VII of the Illinois Constitution on the concurrent |
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| 1 | | exercise by home rule units of powers and functions exercised | 2 | | by the State. | 3 | | (d) This Section does not apply to any plan authorized or | 4 | | created under the Illinois Pension Code. | 5 | | Section 20. The School Code is amended by adding Section | 6 | | 10-20.55 as follows: | 7 | | (105 ILCS 5/10-20.55 new) | 8 | | Sec. 10-20.55. Application of the prudent investor rule to | 9 | | 403(b) and 457(b) plans. | 10 | | (a) Beginning January 1, 2015, if a school board other than | 11 | | the Chicago Board of Schools offers a 403(b) or 457(b) plan to | 12 | | its officers, employees, or both, or makes contributions to | 13 | | such a plan on behalf of its officers, employees, or both, then | 14 | | the plan sponsor must act in accordance with the prudent | 15 | | investor rule when making plan-related decisions. | 16 | | (b) For the purposes of this Section, a plan sponsor acts | 17 | | in accordance with the prudent investor rule if he or she acts | 18 | | in good faith and with the care, skill, prudence, diligence, | 19 | | and degree of judgment that an investor of prudence, | 20 | | discretion, and sound judgment would exercise in the management | 21 | | of his or her own affairs, taking into account all aspects of | 22 | | plan design, including, but not limited to, total delivered | 23 | | fees, surrender charges, and third-party administrator fees. | 24 | | The intent of this legislation is for the plan sponsor to |
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| 1 | | consolidate to a single provider. | 2 | | (c) The plan sponsor may comply with the requirements of | 3 | | this Section by joining a multiple employer plan that already | 4 | | complies with the prudent investor rule. | 5 | | (d) This Section does not apply to any plan authorized or | 6 | | created under the Illinois Pension Code.
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