104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB2016 Introduced 2/6/2025, by Sen. Karina Villa SYNOPSIS AS INTRODUCED: 105 ILCS 5/22-101 new Amends the School Code. Provides that, by July 1, 2027, the school board of each school district in the State that offers its employees a retirement savings plan established under Section 403(b) of the Internal Revenue Code of 1986 may enter into a contract with one or more vendors to provide participants with plan investments options. Provides that a vendor selected under after the effective date of the Act must be mutually agreed upon by the affected collective bargaining unit or units and the school board must ensure that the vendor follows the specified investment guidelines. Permits a specified vendor offering a plan to charge an investment advisory representative fee not to exceed 0.50% annually. Provides that, if a new vendor is chosen to administer a retirement saving plan that is offered by the specified school board of a school district, an employee of the school district may opt out of having the employee's individual 403(b) assets transferred to that new vendor. Limits applicability of the provisions to contracts entered into, extended, or renewed on or after the effective date of the Act. LRB104 09468 LNS 19529 b A BILL FOR 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB2016 Introduced 2/6/2025, by Sen. Karina Villa SYNOPSIS AS INTRODUCED: 105 ILCS 5/22-101 new 105 ILCS 5/22-101 new Amends the School Code. Provides that, by July 1, 2027, the school board of each school district in the State that offers its employees a retirement savings plan established under Section 403(b) of the Internal Revenue Code of 1986 may enter into a contract with one or more vendors to provide participants with plan investments options. Provides that a vendor selected under after the effective date of the Act must be mutually agreed upon by the affected collective bargaining unit or units and the school board must ensure that the vendor follows the specified investment guidelines. Permits a specified vendor offering a plan to charge an investment advisory representative fee not to exceed 0.50% annually. Provides that, if a new vendor is chosen to administer a retirement saving plan that is offered by the specified school board of a school district, an employee of the school district may opt out of having the employee's individual 403(b) assets transferred to that new vendor. Limits applicability of the provisions to contracts entered into, extended, or renewed on or after the effective date of the Act. LRB104 09468 LNS 19529 b LRB104 09468 LNS 19529 b A BILL FOR
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB2016 Introduced 2/6/2025, by Sen. Karina Villa SYNOPSIS AS INTRODUCED:
105 ILCS 5/22-101 new 105 ILCS 5/22-101 new
105 ILCS 5/22-101 new
Amends the School Code. Provides that, by July 1, 2027, the school board of each school district in the State that offers its employees a retirement savings plan established under Section 403(b) of the Internal Revenue Code of 1986 may enter into a contract with one or more vendors to provide participants with plan investments options. Provides that a vendor selected under after the effective date of the Act must be mutually agreed upon by the affected collective bargaining unit or units and the school board must ensure that the vendor follows the specified investment guidelines. Permits a specified vendor offering a plan to charge an investment advisory representative fee not to exceed 0.50% annually. Provides that, if a new vendor is chosen to administer a retirement saving plan that is offered by the specified school board of a school district, an employee of the school district may opt out of having the employee's individual 403(b) assets transferred to that new vendor. Limits applicability of the provisions to contracts entered into, extended, or renewed on or after the effective date of the Act.
LRB104 09468 LNS 19529 b LRB104 09468 LNS 19529 b
LRB104 09468 LNS 19529 b
A BILL FOR
SB2016LRB104 09468 LNS 19529 b SB2016 LRB104 09468 LNS 19529 b
SB2016 LRB104 09468 LNS 19529 b
1 AN ACT concerning education.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The School Code is amended by adding Sections
5 22-101 and 22-102 as follows:
6 (105 ILCS 5/22-101 new)
7 Sec. 22-101. Retirement savings plans; requirements.
8 (a) This Section applies to contracts entered into,
9 extended, or renewed on or after the effective date of this
10 amendatory Act of the 104th General Assembly.
11 (b) By July 1, 2027, the school board of each school
12 district in the State that offers its employees a retirement
13 savings plan established under Section 403(b) of the Internal
14 Revenue Code of 1986 may enter into a contract with one or more
15 vendors to provide participants with plan investments options.
16 A vendor selected under this Section after the effective
17 date of this amendatory Act of the 104th General Assembly must
18 be mutually agreed upon by the affected collective bargaining
19 unit or units and the school board and must ensure that:
20 (1) neither it nor the plan investment options it
21 provides impose an administrative asset-based fee in
22 excess of 0.50%;
23 (2) neither it nor the plan investment options it
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB2016 Introduced 2/6/2025, by Sen. Karina Villa SYNOPSIS AS INTRODUCED:
105 ILCS 5/22-101 new 105 ILCS 5/22-101 new
105 ILCS 5/22-101 new
Amends the School Code. Provides that, by July 1, 2027, the school board of each school district in the State that offers its employees a retirement savings plan established under Section 403(b) of the Internal Revenue Code of 1986 may enter into a contract with one or more vendors to provide participants with plan investments options. Provides that a vendor selected under after the effective date of the Act must be mutually agreed upon by the affected collective bargaining unit or units and the school board must ensure that the vendor follows the specified investment guidelines. Permits a specified vendor offering a plan to charge an investment advisory representative fee not to exceed 0.50% annually. Provides that, if a new vendor is chosen to administer a retirement saving plan that is offered by the specified school board of a school district, an employee of the school district may opt out of having the employee's individual 403(b) assets transferred to that new vendor. Limits applicability of the provisions to contracts entered into, extended, or renewed on or after the effective date of the Act.
LRB104 09468 LNS 19529 b LRB104 09468 LNS 19529 b
LRB104 09468 LNS 19529 b
A BILL FOR
105 ILCS 5/22-101 new
LRB104 09468 LNS 19529 b
SB2016 LRB104 09468 LNS 19529 b
SB2016- 2 -LRB104 09468 LNS 19529 b SB2016 - 2 - LRB104 09468 LNS 19529 b
SB2016 - 2 - LRB104 09468 LNS 19529 b
SB2016 - 2 - LRB104 09468 LNS 19529 b