SB2016 allows Illinois school districts to contract with vendors for 403(b) retirement plans, with specific investment guidelines and fees.
SB2016 amends the School Code to allow school boards in Illinois to contract with vendors for 403(b) retirement plans by July 1, 2027. The vendor must be mutually agreed upon by the collective bargaining unit and the school board. The vendor must ensure that fees do not exceed 0.50% annually, and there are no front-end sales, advisory, or surrender charges. The plan must offer access to target-date index, broad-based domestic index, broad-based bond index, and international index funds with specified expense ratios.
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- Core Provisions
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- Legal Framework
- Critical Issues
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