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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB6369
Introduced 2/18/2010, by Rep. Michael J. Madigan - Barbara Flynn Currie SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/1-110 |
from Ch. 108 1/2, par. 1-110 |
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Amends the Illinois Pension Code. Makes a technical change in a Section concerning prohibited transactions.
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| PENSION IMPACT NOTE ACT MAY APPLY | |
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A BILL FOR
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HB6369 |
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LRB096 20986 AMC 36830 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing |
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| Section 1-110 as follows:
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| (40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110)
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| Sec. 1-110. Prohibited Transactions.
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| (a) A fiduciary with respect to a retirement system, |
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| pension fund, or investment board shall
not cause the the |
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| retirement system or pension fund to engage in a transaction if
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| he or she knows or should know that such transaction |
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| constitutes a direct or
indirect:
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| (1) Sale or exchange, or leasing of any property from |
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| the retirement
system
or pension fund to a party in |
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| interest for less than adequate consideration,
or from a |
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| party in interest to a retirement system or pension fund |
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| for more
than adequate consideration.
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| (2) Lending of money or other extension of credit from |
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| the retirement
system or pension fund to a party in |
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| interest without the receipt of adequate
security and a |
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| reasonable rate of interest, or from a party in interest to
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| a retirement system or pension fund with the provision of |
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| excessive security
or an unreasonably high rate of |
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HB6369 |
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LRB096 20986 AMC 36830 b |
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| interest.
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| (3) Furnishing of goods, services or facilities from |
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| the retirement
system or pension fund to a party in |
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| interest for less than adequate
consideration, or from a |
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| party in interest to a retirement system or
pension fund |
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| for more than adequate consideration.
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| (4) Transfer to, or use by or for the benefit of, a |
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| party in interest
of any assets of a retirement system or |
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| pension fund for less than adequate
consideration.
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| (b) A fiduciary with respect to a retirement system or |
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| pension fund
established under this Code shall not:
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| (1) Deal with the assets of the retirement system or |
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| pension fund in his
own interest or for his own account;
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| (2) In his individual or any other capacity act in any |
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| transaction
involving the retirement system or pension |
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| fund on behalf of a party whose
interests are adverse to |
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| the interests of the retirement system or pension fund
or |
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| the interests of its participants or beneficiaries; or
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| (3) Receive any consideration for his own personal |
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| account from any party
dealing with the retirement system |
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| or pension fund in connection with a
transaction involving |
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| the assets of the retirement system or pension
fund.
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| (c) Nothing in this Section shall be construed to prohibit |
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| any trustee from:
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| (1) Receiving any benefit to which he may be entitled |
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| as a participant
or beneficiary in the retirement system or |
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HB6369 |
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LRB096 20986 AMC 36830 b |
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| pension fund.
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| (2) Receiving any reimbursement of expenses properly |
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| and actually incurred
in the performance of his duties with |
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| the retirement system or pension fund.
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| (3) Serving as a trustee in addition to being an |
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| officer, employee, agent
or other representative of a party |
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| in interest.
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| (d) A fiduciary of a pension fund established under Article |
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| 3 or 4 shall
not knowingly cause or advise the pension fund to |
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| engage in an investment transaction when the fiduciary (i) has |
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| any direct interest in
the income, gains, or profits of the |
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| investment adviser through which the investment transaction is |
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| made or (ii) has a business relationship with that investment |
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| adviser that would result in a pecuniary benefit to the |
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| fiduciary as a result of the investment transaction. |
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| Violation of this subsection (d) is a Class 4 felony.
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| (e) A board member, employee, or consultant with respect to |
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| a retirement system, pension fund, or investment board subject |
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| to this Code, except those whose investments are restricted by |
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| Section 1-113.2, shall not knowingly cause or advise the |
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| retirement system, pension fund, or investment board to engage |
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| in an investment transaction with an investment adviser when |
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| the board member, employee, consultant, or their spouse (i) has |
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| any direct interest in the income, gains, or profits of the |
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| investment adviser through which the investment transaction is |
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| made or (ii) has a relationship with that investment adviser |
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HB6369 |
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LRB096 20986 AMC 36830 b |
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| that would result in a pecuniary benefit to the board member, |
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| employee, or consultant or spouse of such board member, |
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| employee, or consultant as a result of the investment |
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| transaction. For purposes of this subsection (e), a consultant |
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| includes an employee or agent of a consulting firm who has |
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| greater than 7.5% ownership of the consulting firm. |
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| Violation of this subsection (e) is a Class 4 felony. |
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| (Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.)
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