Illinois General Assembly - Full Text of HB0341
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Full Text of HB0341  103rd General Assembly

HB0341sam001 103RD GENERAL ASSEMBLY

Sen. Karina Villa

Filed: 5/23/2024

 

 


 

 


 
10300HB0341sam001LRB103 03868 RJT 74029 a

1
AMENDMENT TO HOUSE BILL 341

2    AMENDMENT NO. ______. Amend House Bill 341 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The School Code is amended by adding Section
522-100 as follows:
 
6    (105 ILCS 5/22-100 new)
7    Sec. 22-100. Retirement savings plans; requirements.
8    (a) This Section applies to contracts entered into or
9renewed on or after the effective date of this amendatory Act
10of the 103rd General Assembly.
11    (b) By July 1, 2026, the school board of each school
12district in the State that offers its employees a retirement
13savings plan established under Section 403(b) of the Internal
14Revenue Code of 1986 may enter into a contract with one or more
15vendors to provide participants with plan investment options.
16    Any vendor selected under this Section after the effective

 

 

10300HB0341sam001- 2 -LRB103 03868 RJT 74029 a

1date of this amendatory Act of the 103rd General Assembly must
2be mutually agreed upon by the affected collective bargaining
3unit or units and the school board and must ensure that:
4        (1) neither it nor the plan investment options it
5    provides impose an administrative asset-based fee in
6    excess of 0.50%;
7        (2) neither it nor the plan investment options it
8    provides impose front-end sales or advisory charges;
9        (3) neither it nor the plan investment options it
10    provides impose surrender charges;
11        (4) the provided plan investment options offer access
12    to all of the following types of funds:
13            (A) a target-date index fund with an expense ratio
14        that is less than or equal to 0.25%;
15            (B) a broad-based domestic index fund with an
16        expense ratio that is less than or equal to 0.10%;
17            (C) a broad-based bond index fund with an expense
18        ratio that is less than or equal to 0.10%; and
19            (D) an international index fund with an expense
20        ratio that is less than or equal to 0.10%.
21    (c) Any vendor offering a plan under this Section may
22charge an investment advisory representative fee not to exceed
230.50% annually.
24    (d) If any new vendor is chosen to administer a retirement
25savings plan that is offered by the school board of a school
26district under this Section, an employee of the school

 

 

10300HB0341sam001- 3 -LRB103 03868 RJT 74029 a

1district may opt out of having the employee's individual
2403(b) mutual fund custodial account or annuity contract
3transferred to that new vendor. This subsection does not apply
4to assets held by the employer in a group contract.
5    (e) A participant who is contributing to a 403(b)
6retirement savings plan account through a salary reduction
7agreement on or before the effective date of this amendatory
8Act of the 103rd General Assembly may continue to make
9contributions even if the account does not meet the
10requirements provided in this Section.
11    (f) If a participant stops contributing to a 403(b)
12retirement savings plan account that does not meet the
13requirements of this Section, then the participant is no
14longer eligible to make salary reduction contributions to the
15403(b) retirement savings plan account that does not meet the
16requirements of this Section.
17    (g) A collective bargaining unit is not liable in the
18selection of a vendor under this Section.
19    (h) Nothing in this Section may cause or be used to support
20liability against a school board or any of a school board's
21employees under any theory of law or equity, including, but
22not limited to, contract law.
23    (i) Nothing in this Section may be interpreted to require
24a school board to violate any laws, the terms of an existing
25403(b) plan document, or the terms of any collective
26bargaining agreement or contract.".