A bill is before the Illinois Senate that would allow a financial institution or investment provider to offer or provide services to certain 457 plans.
Sen Michael W. Halpin (D-Rock Island) introduced SB1233 on Feb. 2, 2023.
The bill provides that a financial institution or investment provider, by entering into a written agreement, may offer or provide services to a 457 plan established or maintained by a school district with an enrollment of at least 1,000 students if the agreement is not combined with any other written agreement for the administration of the plan.
The bill also:
- provides that each school district that provides a 457 plan shall make available to participants at least four financial institutions or investment providers that (1) have not entered into a written agreement and (2) that provide services to the school district's 457 plan; and
- sets forth requirements for a financial institution or investment provider providing services for a 457 plan.
The measure was referred to Senate Special Committee on Pensions on Feb. 7.
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