summary
Introduced
02/06/2025
02/06/2025
In Committee
06/02/2025
06/02/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
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.
AI Summary
This bill amends the School Code to establish new requirements for retirement savings plans offered by school districts in Illinois. By July 1, 2027, school boards that provide 403(b) retirement savings plans (a type of tax-advantaged retirement account typically used by employees of public schools and certain tax-exempt organizations) must follow specific guidelines when selecting plan vendors. These guidelines include ensuring that any vendor selected after the bill's effective date is mutually agreed upon by the school board and the relevant collective bargaining unit. The bill limits administrative asset-based fees to no more than 0.50% and allows school districts to contract with one or more vendors to provide investment options for plan participants. If a new vendor is chosen to administer the plan, employees will have the option to opt out of automatically transferring their individual 403(b) assets to the new vendor. The provisions of this bill will only apply to contracts that are entered into, extended, or renewed on or after the effective date of the amendment.
Committee Categories
Labor and Employment
Sponsors (4)
Last Action
Added as Co-Sponsor Sen. Rachel Ventura (on 02/24/2026)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2016&GAID=18&DocTypeID=SB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/SB/10400SB2016.htm |
Loading...