We are reaching out to bring your attention to a critical matter that directly impacts our members’ financial well-being and freedom.
We have been working to negotiate SB 2568 (Villa; D-West Chicago) since February of this session. With the legislation, the Senator intends to limit the available 403b plan options to all school district employees to only those that meet certain specifications. By default, these limits would eliminate many choices for employees who have different financial situations that may dictate the necessity of a diverse array of investment choices. Industry representatives believe the requirements of this bill could eliminate upwards of 90% of existing plan options.
Recently, 5th and 6th amendments were filed that include proposals that our organization is opposed to, including the limiting of 403b choice for new employees or plan enrollees, and the elimination of an employee’s ability to restart contributions to certain plans after they may stop contributions for any reason. The bill went through committee this morning on a partisan vote, with four Democrat members hesitantly voting Yes to get the bill out of committee and the bill will be up for a full floor vote next.
Not only does this proposal threaten employees’ financial autonomy and a school district’s ability to provide a flexible benefit plan for employees, but it could also create liability for the school district surrounding plan selection and cause the district to incur fees associated with providing access to these plans.
To sign the OPPOSITION witness slip, simply follow the link provided below:
https://oneclickpolitics.global.ssl.fastly.net/messages/edit?promo_id=22644
Thank you for your attention to this urgent matter!