summary
Introduced
02/06/2025
02/06/2025
In Committee
02/06/2025
02/06/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the University Employees Custodial Accounts Act. Provides that the governing board of any public institution of higher education shall require that the defined contribution plan recordkeeper agree that, in performing services with respect to the defined contribution plan, the recordkeeper: (i) will not use information received as a result of providing services with respect to the defined contribution plan or the participants in the defined contribution plan to solicit the participants in the defined contribution plan for the purpose of cross-selling nonplan products and services, unless in response to a request by a participant in the defined contribution plan or a request by the governing board of the public institution of higher education or its authorized delegate (rather than a request by a participant); and (ii) will not promote, recommend, endorse, or solicit participants in the defined contribution plan to purchase any financial products or services outside of the defined contribution plan, except that links to parts of the recordkeeper's or the recordkeeper's affiliate's (rather than the recordkeeper's) website that are generally available to the public, are about commercial products, and may be encountered by a participant in the regular course of navigating the recordkeeper's or the recordkeeper's affiliate's (rather than the recordkeeper's) website will not constitute a violation. Makes related changes. Effective immediately.
AI Summary
This bill amends the University Employees Custodial Accounts Act to strengthen regulations around defined contribution plans (retirement savings plans) at public higher education institutions. The bill requires recordkeepers who manage these plans to agree to two key restrictions: first, they cannot use participant information to cross-sell non-plan products and services, except when responding to requests from participants or the institution's governing board; and second, they cannot promote, recommend, or solicit participants to purchase financial products outside the defined contribution plan. The only exception is for publicly available website links that participants might naturally encounter while navigating the recordkeeper's or its affiliate's website. The bill also allows public institutions to permit limited services like educational counseling or debt reduction assistance, with the caveat that the institution receives no compensation for these services. Additionally, the bill specifies that promotional services for products like credit cards, life insurance, or banking products are prohibited unless specifically requested by the institution's governing board. These changes aim to protect retirement plan participants from aggressive marketing and ensure that recordkeepers prioritize the financial interests of plan participants.
Sponsors (1)
Last Action
Referred to Assignments (on 02/06/2025)
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=1891&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB1891.htm |
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