Full Text of SB1826 97th General Assembly
SB1826 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB1826 Introduced 2/9/2011, by Sen. Jeffrey M. Schoenberg SYNOPSIS AS INTRODUCED: |
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Amends the State Comptroller Act. Authorizes the State Comptroller to create, administer, manage, and operate a supplemental employee deferral plan to supplement and enhance the retirement income of employees of public school districts and community colleges. Sets forth the requirements for a supplemental employee deferral plan.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| | | SB1826 | | LRB097 08379 RLJ 48506 b |
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| 1 | | AN ACT concerning State government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The State Comptroller Act is amended by adding | 5 | | Section 26 as follows: | 6 | | (15 ILCS 405/26 new) | 7 | | Sec. 26. Supplemental Employee Deferral Plan. The | 8 | | Comptroller may establish, administer, manage, and operate a | 9 | | supplemental employee deferral plan to supplement and enhance | 10 | | the retirement income of employees of public school districts | 11 | | and community colleges. As used in this Section, "supplemental | 12 | | employee deferral plan" means a tax deferred annuity described | 13 | | in Section 403(b) of the Internal Revenue Code, including a | 14 | | custodial account described in 403(b)(7) of the Internal | 15 | | Revenue Code. The supplemental employee deferral plan shall | 16 | | comply with all applicable provisions of Section 403(b) of the | 17 | | Internal Revenue Code. If a school district or community | 18 | | college elects to participate in the supplemental employee | 19 | | deferral plan, any employee of the school district or community | 20 | | college who meets the eligibility requirements prescribed by | 21 | | the Comptroller may participate in the plan. | 22 | | Notwithstanding any law to the contrary, participation in | 23 | | the supplemental employee deferral plan authorizes the |
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| 1 | | participant's employer to make salary reductions from the | 2 | | participant's compensation and contribute the salary | 3 | | reductions to the plan. An employer may make employer | 4 | | contributions to the supplemental employee deferral plan if the | 5 | | plan permits. Any compensation deferred under a supplemental | 6 | | employee deferral plan shall continue to be included as regular | 7 | | compensation for the purpose of computing the retirement and | 8 | | pension benefits earned by an employee. As used in this | 9 | | Section, "compensation" includes compensation received in a | 10 | | lump sum for accumulated unused vacation time, personal leave, | 11 | | or sick leave. Employee contributions and earnings on employee | 12 | | contributions are immediately vested. Employer contributions, | 13 | | if any, and the earnings on employer contributions shall vest | 14 | | according to the schedule established in the plan. | 15 | | The supplemental employee deferral plan shall provide for | 16 | | the recovery of any administrative expenses against the | 17 | | earnings from investments or by charging fees equitably | 18 | | prorated among the participants or by any other appropriate and | 19 | | equitable method as the Comptroller shall determine. Different | 20 | | methods for recovery of administrative expenses may be provided | 21 | | in relation to the different types of investment programs and | 22 | | the Comptroller may provide for the allocation of | 23 | | administration expenses among varying types of programs for | 24 | | this purpose. | 25 | | The Comptroller may employ services that he or she deems | 26 | | necessary for the operation and administration of the plan and |
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| 1 | | may administer the plan thorough a third party vendor. The | 2 | | Supplemental Employee Deferral Plan may be invested in any | 3 | | investments as are deemed acceptable by the Comptroller | 4 | | including, but not limited to, life insurance or annuity | 5 | | contracts or mutual funds. All insurance, annuities, mutual | 6 | | funds, or other investments used under this Plan must be | 7 | | reviewed and selected by the Comptroller based on a competitive | 8 | | bidding process as established by such specifications and | 9 | | considerations as are deemed appropriate by the Comptroller. | 10 | | Upon creating the Supplemental Employee Deferral Plan, the | 11 | | Comptroller shall give bond with 2 or more sufficient sureties, | 12 | | payable to and for the benefit of the participants in the | 13 | | Supplemental Employee Deferral Plan, in the penal sum of | 14 | | $1,000,000, conditioned upon the faithful discharge of his or | 15 | | her duties in relation to the Supplemental Employee Deferral | 16 | | Plan.
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