SB 1646

Abstract

Amends the State Universities and Downstate Teacher Articles of the Illinois Pension Code. Provides that in administering the optional deferred compensation plan, the System shall require that the deferred compensation plan recordkeeper agree that, in performing services with respect to the deferred compensation plan, the recordkeeper: (i) will not use information received as a result of providing services with respect to the deferred compensation plan or the participants in the deferred compensation plan to solicit the participants in the deferred compensation plan for the purpose of cross-selling nonplan products and services, unless in response to a request by a participant in the deferred compensation plan; and (ii) will not promote, recommend, endorse, or solicit participants in the deferred compensation plan to purchase any financial products or services outside of the deferred compensation plan. Adds similar provisions with regard to the deferred compensation plan and local government deferred compensation plans under the Deferred Compensation Article. Amends the University Employees Custodial Accounts Act. Provides that in administering a defined contribution plan to provide retirement benefits, the governing board of any public institution of higher education shall require that the plan recordkeeper agree that, in performing services with respect to the plan, the recordkeeper: (i) will not use information received as a result of providing services with respect to the plan or the plan's participants to solicit the plan's participants for the purpose of cross-selling nonplan products and services, unless in response to a request by a participant in the plan; and (ii) will not promote, recommend, endorse, or solicit participants in the plan to purchase any financial products or services outside of the plan. Senate Committee Amendment No. 1 Provides that that links to parts of 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 website will not constitute a violation of a provision prohibiting recordkeepers from promoting, recommending, endorsing, or soliciting participants in the deferred compensation plan to purchase any financial products or services outside of the plan. Senate Floor Amendment No. 2 Adds reference to: 40 ILCS 5/11-196 from Ch. 108 1/2, par. 11-196 40 ILCS 5/12-162.5 new 40 ILCS 5/1-167 40 ILCS 5/24-105.2 40 ILCS 5/22C-115 40 ILCS 5/22C-116 40 ILCS 5/22C-119 40 ILCS 5/22C-123 40 ILCS 5/8-165 from Ch. 108 1/2, par. 8-165 105 ILCS 5/24-6.3 from Ch. 122, par. 24-6.3 40 ILCS 5/16-155 from Ch. 108 1/2, par. 16-155 40 ILCS 5/9-108.3 40 ILCS 5/9-161 from Ch. 108 1/2, par. 9-161 40 ILCS 5/17-133 from Ch. 108 1/2, par. 17-133 30 ILCS 805/8.47 new Replaces everything after the enacting clause. Reinserts the provisions of the bill, as amended by Senate Amendment No. 1, with the following changes. Further amends the Illinois Pension Code. In the Chicago Laborers Article, provides that the Board of Trustees of the Fund has the power to issue subpoenas to compel the attendance of witnesses to testify before it and to compel the production of documents and records upon any matter concerning the Fund. Makes changes concerning witness fees. In the General Provisions Article, excludes disclosures made to the Municipal Employees Society of Chicago from a provision that prohibits the disclosure of certain information regarding members or participants of a pension fund or retirement system. In the Firefighters' Pension Investment Fund Article, makes changes concerning the oath of office; reimbursement for travel expenses; and trustee vacancies. In the Chicago Municipal Article, provides that for school years beginning on or after July 1, 2023, an age and service or prior service annuity shall not be cancelled in the case of an employee who is re-employed by the Board of Education of the city as a paraprofessional or related service provider on a temporary and non-annual basis or on an hourly basis so long as the person: (1) does not work for compensation on more than 120 days in a school year; or (2) does not accept gross compensation for the re-employment in a school year in excess of $30,000. Amends the School Code. Provides that the school board and other employers shall make available to each active teacher who is an elected trustee under the Chicago Teachers Article of the Illinois Pension Code up to 22 days of paid leave of absence per year for the purpose of attending meetings and seminars of the Board of Trustees. In the Downstate Teacher Article of the Illinois Pension Code, makes changes concerning the employer's submission of reports and contributions. In the Cook County Article of the Code, provides that if an employee annuitant re-enters service as an election worker and provides services for a scheduled federal, State, or local election for a period of 60 days or less during a calendar year, that employee annuitant's annuity shall not be suspended. In a provision of the Chicago Teachers Article allowing a member to establish credit for service as a teacher or administrator employed by a private school, provides that the applicable interest rate is the actuarially assumed rate in effect at the time of application (rather than at a rate determined by the Board of Trustees). Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. Senate Floor Amendment No. 3 Makes a technical correction. House Floor Amendment No. 1 Provides that a public institution of higher education may allow promotion of limited services if the public institution of higher education receives no compensation from the recordkeeper for promoting or providing such services. Provides that such limited services may include educational, counseling, debt reduction, student loan repayment or forgiveness, or other services intended to enhance retirement savings opportunities. Provides that such limited services may not include credit cards, life insurance, or banking products.