Happy Friday!
It has been an interesting week in Springfield to say the least. Although we did not see many committee cancellations, the committees that did convene heard only a handful of measures.
Retirement Plan Legislation
On Wednesday morning, the Senate Labor Committee heard testimony regarding SB 2568 (Villa-D; West Chicago), a bill aimed at imposing substantial restrictions on the administration of 403b plans within Illinois schools. Notably, this measure has garnered support from 403bwise.org, the IEA and the IFT.
Key provisions of SB 2568 include the elimination of the current practice of offering multiple vendors for 403b investments, which is prevalent in a majority of districts. Advocates for the bill argue that this change is necessary due to instances of districts approving vendors with high-fee plans without adequate vetting, resulting in teachers unknowingly enrolling in plans that adversely affect their retirement savings. Additionally, concerns have been raised about the lack of competitive fee structures due to non-competitive bidding processes.
Specifically, SB 2568 would mandate districts to offer only a single vendor plan for 403b investments, a departure from the approach taken with 457 plans under PA 103-0481, which necessitates the offering of multiple plans in certain large districts. Furthermore, the bill proposes that these plans be subject to competitive bidding every seven years, with the selection of the lowest bidder to be determined by the collective bargaining unit's representative.
It is evident that such sweeping changes pose significant concerns for our organization and its members. Transitioning to a single vendor model would curtail employee choice in selecting retirement savings plans, impacting a substantial number of individuals across our districts. Moreover, while the selection process may involve collective bargaining representatives, it is important to recognize that many employees may not have direct involvement or representation in this decision-making process.
Our organization has voiced these concerns to the bill's sponsor on numerous occasions, including during the recent committee hearing. Despite our efforts, the sponsor has indicated a reluctance to engage in further negotiations regarding the legislation.
In light of these developments, we are actively communicating our concerns to other Senators and exploring potential compromise options. We urge you to reach out to your local Senator to express any apprehensions you may have regarding the implications of SB 2568 on your school system. Please remain vigilant for potential Calls to Action in the coming weeks as we navigate this legislative landscape.
Senate Education Committee Highlights
The following bills were heard and passed in the Senate Education committee on Tuesday:
SB 3164 (Edly-Allen-D; Grayslake) ensures that school districts are able to utilize standardized assessments to determine student eligibility for gifted and advanced academic programs.
SB 3166 (Koehler-D; Peoria Heights) would change the definition of permanent student records to include documents related to student achievement, special education records, etc, and would allow access to records by outside agencies looking to support students with post-secondary services. The Senator is willing to amend the bill based on concerns our team raised, so we anticipate an amendment.
SB 3237 (Belt-D; East St. Louis) would allow school districts that were on the 2004 through 2006 construction lists to qualify for a reduced local match if the districts apply and are approved during the first three grant cycles (rather than the first grant cycle). The statute is being updated to three years to reflect the backlog of three years’ worth of projects from 2004 through 2006.
What’s Next
Next week marks an “off week” for legislators, and they plan to return to Springfield on Tuesday, March 5th for more committee action. With limited committee activity thus far in the session, it is sure to pick up the pace in the coming months. We will be sure to inform you of the measures that might make their way to committee in our communication next week!
Have a great weekend!