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Public Act 103-0481
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| SB0734 Enrolled | LRB103 03178 RPS 48184 b |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The School Code is amended by adding Section |
22-95 as follows:
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(105 ILCS 5/22-95 new) |
Sec. 22-95. Retirement and deferred compensation plans. |
(a) This Section applies only to school districts, other |
than a school district organized under Article 34, with a |
full-time licensed teacher population of 575 or more teachers |
that maintain a 457 plan. Every applicable school district |
shall make available
to participants more than one financial |
institution or investment
provider to provide services to the |
school district's 457 plan. |
(b) A financial institution or investment provider, by |
entering into a written agreement, may offer or provide |
services to a plan offered, established, or maintained by a |
school district under Section 457 of the Internal Revenue Code |
of 1986 if the written agreement is not combined with any other |
written agreement for the administration of the school |
district's 457 plan. |
Each school district that offers a 457 plan shall make |
available to participants, in the manner provided in |
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subsection (d), more than one financial institution or |
investment provider that has not entered into a written |
agreement to provide administration services and that provides |
services to a 457 plan offered to school districts. |
(c) A financial institution or investment provider |
providing services for any plan offered, established, or |
maintained by a school district under Section 457 of the |
Internal Revenue Code of 1986 shall: |
(1) enter into an agreement with the school district |
or the school district's independent compliance |
administrator that requires the financial institution or |
investment provider to provide, in an electronic format, |
all data necessary for the administration of the 457 plan, |
as determined by the school district or the school |
district's compliance administrator; |
(2) provide all data required by the school district |
or the school district's compliance administrator to |
facilitate disclosure of all fees, charges, expenses, |
commissions, compensation, and payments to third parties |
related to investments offered under the 457 plan; and |
(3) cover all plan administration costs agreed to by |
the school district relating to the administration of the |
457 plan. |
(d) A school district that offers, establishes, or |
maintains a plan under Section 457 of the Internal Revenue |
Code of 1986, except for a plan established under Section |
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16-204 of the Illinois Pension Code, shall select more than |
one financial institution or investment provider, in addition |
to the financial institution or investment provider that has |
entered into a written agreement under subsection (b), to |
provide services to the 457 plan. A financial institution or |
investment provider shall be designated a 457 plan provider if |
the financial institution or investment provider enters into |
an agreement in accordance with subsection (c). |
(e) A school district shall have one year after the |
effective date of this amendatory Act of the 103rd General |
Assembly to find a 457 plan provider under this Section. |
(f) Nothing in this Section shall apply to or impact the
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optional defined contribution benefit established by the |
Teachers' Retirement System of the State of Illinois under |
Section 16-204 of the Illinois Pension Code.
Notwithstanding |
the foregoing, the Teachers' Retirement System may elect to |
share plan data for
the 457 plan established pursuant to |
Section 16-204 of the Illinois Pension Code with the school |
district, upon request by the school district, in
order to |
facilitate school districts' compliance with this
Section and |
Section 457 of the Internal Revenue Code of 1986. If a
school |
district requests that the Teachers' Retirement System share |
plan information for the 457 plan established pursuant to |
Section 16-204 of the Illinois Pension Code, the Teachers' |
Retirement System may assess a fee on the applicable school
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district.
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