2023 Illinois Compiled Statutes › Chapter 110 - HIGHER EDUCATION › 110 ILCS 95/ - University Employees Custodial Accounts Act.

(110 ILCS 95/0.01) (from Ch. 144, par. 1700)
Sec. 0.01. 
		Short title. 
		This Act may be cited as the
University Employees Custodial Accounts Act.
(Source: P.A. 86-1324.)
(110 ILCS 95/1) (from Ch. 144, par. 1701)
Sec. 1. 
		As used in this Act:
"The governing board of any public institution
of higher education" means the Board of Trustees of the University of Illinois,
the Board of Trustees of Southern Illinois University,
the Board of Trustees of Chicago State University, the Board of Trustees of
Eastern Illinois University, the Board of Trustees of Governors State
University, the Board of Trustees of Illinois State University, the Board of
Trustees of Northeastern Illinois University, the Board of Trustees of Northern
Illinois University, the Board of Trustees of Western Illinois University and
the Illinois
Community College Board.
"Eligible employees" means employees of public institutions of higher
education
who qualify for favorable tax treatment under Section 403b of the Internal
Revenue Code.
(Source: P.A. 89-4, eff. 1-1-96.)
(110 ILCS 95/2) (from Ch. 144, par. 1702)
Sec. 2. 
The governing board of any public institution of higher education
has the power to establish a defined contribution plan to make payments to custodial accounts for investment in
regulated
investment company stock to provide retirement benefits as described in
Section 403(b)(7) of the Internal Revenue Code for eligible employees of
such institutions.  Such payments shall be made with funds made available
by deductions from or reductions in salary or wages of eligible employees
who authorize in writing deductions or reductions for such purpose.  Such
stock shall be purchased only from persons authorized to sell such stock in
this State.
In administering the defined contribution plan, 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; 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 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 this item (ii). However, 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. Such limited services may include educational, counseling, debt reduction, student loan repayment or forgiveness, or other services intended to enhance retirement savings opportunities. Such limited services may not include credit cards, life insurance, or banking products.
(Source: P.A. 103-552, eff. 8-11-23.)
(110 ILCS 95/3) (from Ch. 144, par. 1703)
Sec. 3. 
		
		Any income deferred under this Act shall continue to be included
as regular compensation for the purpose of contributing to and receiving
benefits from the retirement system of such employee.  Any sum so deferred
shall not be included in the computation of any federal or State income
taxes withheld on behalf of such employee.
(Source: P.A. 83-261.)