IL HB1401

Requires school boards (except Chicago Board of Schools) offering 403(b) plans to officers and employees to apply the prudent investor rule when making plan-related decisions, effective January 1, 2015.

Defines prudent investor rule as acting in good faith with care, skill, prudence, and sound judgment, including consideration of total delivered fees, surrender charges, and administrator fees.

Exempts the state from reimbursing costs of implementing mandates created by this Act under the State Mandates Act.

Does not apply to plans authorized or created under the Illinois Pension Code.