IL HB3309

Requires counties offering 457(b) deferred compensation plans to comply with the prudent investor rule when making plan-related decisions.

Requires municipalities offering 457(b) deferred compensation plans to comply with the prudent investor rule when making plan-related decisions.

Requires school boards (except Chicago Board of Education) offering 403(b) or 457(b) plans to comply with the prudent investor rule when making plan-related decisions.

Defines prudent investor rule as acting in good faith with the care, skill, prudence, and judgment that a prudent investor would exercise while managing their own affairs, considering capital safety and investment returns.

Limits home rule units from regulating fiduciary obligations in a less restrictive manner than state regulation and exempts the bill from State Mandates Act reimbursement requirements.