IL SB2016

Amends the School Code to allow school boards offering 403(b) retirement savings plans to contract with one or more vendors for investment options by July 1, 2027

Requires any new vendor selected after the effective date to be mutually agreed upon by the school board and affected collective bargaining units

Caps administrative asset-based fees at 0.50% and prohibits front-end sales charges, advisory charges, and surrender charges

Mandates plan investment options include low-cost index funds: target-date funds (≤0.25% expense ratio), domestic index funds (≤0.10%), bond index funds (≤0.10%), and international index funds (≤0.10%)

Allows employees to opt out of having their 403(b) assets transferred when a school district switches to a new vendor