summary
Introduced
02/04/2025
02/04/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Downstate Teacher Article of the Illinois Pension Code. Provides that school districts that offer a 457(b) plan through a single vendor may use their single-vendor plan to satisfy the requirements of Public Act 102-540. Limits the number of school districts that may use their single-vendor plan to 10% of school districts statewide. Sets forth requirements for a single-vendor plan. Provides that when choosing a single vendor for the pilot program, the overriding consideration with respect to all decisions made by the plan sponsor concerning the plan is that the decisions be made solely in the best interests of the plan's participants and beneficiaries. Sets forth other requirements for the single-vendor plan. Provides that no vendor may offer a plan under the provisions if an individual employed by, compensated by, or working for that vendor offers or gives anything of value to any employee who participates in the selection of the 457(b) plan vendor in the school district. Provides that an employee who participates in the selection of the single vendor must avoid outside business interests with any vendor chosen or under consideration for being chosen for the school district; disclose all outside business interests with a vendor chosen or under consideration for being chosen for the school district; not accept any gifts, preferential treatment, or benefits that might affect or appear to affect his or her ability to make sound judgments on selection of a vendor; act honestly and ethically in the best interests of the plan participants in all dealings with chosen vendor; and not obtain employment with any vendor chosen or in consideration for being chosen to offer a plan at the school district for the duration of an interested party's employment or involvement with the school district for a period of one year thereafter. Specifies that the provisions are inoperable on and after January 1, 2031.
AI Summary
This bill amends the Illinois Pension Code to establish a pilot program for school districts offering 457(b) deferred compensation plans through a single vendor. A 457(b) plan is a type of retirement savings plan for employees that allows them to defer a portion of their salary into investments on a pre-tax basis. The bill limits participation to 10% of school districts statewide and sets strict guidelines for plan selection and vendor management. Specifically, when choosing a vendor, the primary consideration must be the best interests of plan participants. The bill prohibits vendors from offering gifts or anything of value to employees involved in vendor selection, and it requires these employees to avoid conflicts of interest, disclose any outside business relationships with vendors, refrain from accepting gifts that could compromise their judgment, and act ethically in the best interests of plan participants. Employees are also barred from seeking employment with selected vendors during their current employment and for one year thereafter. The plan must not include surrender charges or annuities and must allow participants to transfer funds to the supplemental savings plan without cost. These provisions will be inoperable after January 1, 2031, effectively making this a temporary pilot program to test the single-vendor 457(b) plan approach.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2709&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB2709.htm |
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