IL HB5045

Authorizes the State Comptroller to establish and operate a supplemental employee deferral plan (tax-deferred annuity under Internal Revenue Code Section 403(b)) for employees of public school districts and community colleges.

Allows participating school districts and community colleges to offer the plan to eligible employees, with participants able to make salary reduction contributions and employers permitted to make employer contributions.

Specifies that compensation deferred under the plan continues to count as regular compensation for retirement and pension benefit calculations, with employee contributions immediately vested and employer contributions vesting per plan schedule.

Requires the Comptroller to recover administrative expenses through investment earnings, participant fees, or other equitable methods, and permits selected investments including life insurance, annuities, and mutual funds reviewed through competitive bidding.

Allows participating school districts and community colleges to offer additional investments beyond those selected by the Comptroller, provided they contribute to expense recovery and meet fee disclosure requirements, and requires the Comptroller to post a $1,000,000 bond.