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| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB0165 Introduced , by Rep. Michael J. Madigan SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/1-110 | from Ch. 108 1/2, par. 1-110 |
| 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 | |
| | A BILL FOR |
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| | HB0165 | | LRB100 03835 RPS 13840 b |
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1 | | AN ACT concerning public employee benefits.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Pension Code is amended by changing |
5 | | Section 1-110 as follows:
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6 | | (40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110)
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7 | | Sec. 1-110. Prohibited Transactions.
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8 | | (a) A fiduciary with respect to a retirement system, |
9 | | pension fund, or investment board shall
not cause the
the |
10 | | retirement system or pension fund to engage in a transaction if
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11 | | he or she knows or should know that such transaction |
12 | | constitutes a direct or
indirect:
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13 | | (1) Sale or exchange, or leasing of any property from |
14 | | the retirement
system
or pension fund to a party in |
15 | | interest for less than adequate consideration,
or from a |
16 | | party in interest to a retirement system or pension fund |
17 | | for more
than adequate consideration.
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18 | | (2) Lending of money or other extension of credit from |
19 | | the retirement
system or pension fund to a party in |
20 | | interest without the receipt of adequate
security and a |
21 | | reasonable rate of interest, or from a party in interest to
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22 | | a retirement system or pension fund with the provision of |
23 | | excessive security
or an unreasonably high rate of |
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| | HB0165 | - 2 - | LRB100 03835 RPS 13840 b |
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1 | | interest.
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2 | | (3) Furnishing of goods, services or facilities from |
3 | | the retirement
system or pension fund to a party in |
4 | | interest for less than adequate
consideration, or from a |
5 | | party in interest to a retirement system or
pension fund |
6 | | for more than adequate consideration.
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7 | | (4) Transfer to, or use by or for the benefit of, a |
8 | | party in interest
of any assets of a retirement system or |
9 | | pension fund for less than adequate
consideration.
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10 | | (b) A fiduciary with respect to a retirement system or |
11 | | pension fund
established under this Code shall not:
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12 | | (1) Deal with the assets of the retirement system or |
13 | | pension fund in his
own interest or for his own account;
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14 | | (2) In his individual or any other capacity act in any |
15 | | transaction
involving the retirement system or pension |
16 | | fund on behalf of a party whose
interests are adverse to |
17 | | the interests of the retirement system or pension fund
or |
18 | | the interests of its participants or beneficiaries; or
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19 | | (3) Receive any consideration for his own personal |
20 | | account from any party
dealing with the retirement system |
21 | | or pension fund in connection with a
transaction involving |
22 | | the assets of the retirement system or pension
fund.
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23 | | (c) Nothing in this Section shall be construed to prohibit |
24 | | any trustee from:
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25 | | (1) Receiving any benefit to which he may be entitled |
26 | | as a participant
or beneficiary in the retirement system or |
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| | HB0165 | - 3 - | LRB100 03835 RPS 13840 b |
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1 | | pension fund.
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2 | | (2) Receiving any reimbursement of expenses properly |
3 | | and actually incurred
in the performance of his duties with |
4 | | the retirement system or pension fund.
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5 | | (3) Serving as a trustee in addition to being an |
6 | | officer, employee, agent
or other representative of a party |
7 | | in interest.
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8 | | (d) A fiduciary of a pension fund established under Article |
9 | | 3 or 4 shall
not knowingly cause or advise the pension fund to |
10 | | engage in an investment transaction when the fiduciary (i) has |
11 | | any direct interest in
the income, gains, or profits of the |
12 | | investment adviser through which the investment transaction is |
13 | | made or (ii) has a business relationship with that investment |
14 | | adviser that would result in a pecuniary benefit to the |
15 | | fiduciary as a result of the investment transaction. |
16 | | Violation of this subsection (d) is a Class 4 felony.
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17 | | (e) A board member, employee, or consultant with respect to |
18 | | a retirement system, pension fund, or investment board subject |
19 | | to this Code, except those whose investments are restricted by |
20 | | Section 1-113.2, shall not knowingly cause or advise the |
21 | | retirement system, pension fund, or investment board to engage |
22 | | in an investment transaction with an investment adviser when |
23 | | the board member, employee, consultant, or their spouse (i) has |
24 | | any direct interest in the income, gains, or profits of the |
25 | | investment adviser through which the investment transaction is |
26 | | made or (ii) has a relationship with that investment adviser |
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| | HB0165 | - 4 - | LRB100 03835 RPS 13840 b |
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1 | | that would result in a pecuniary benefit to the board member, |
2 | | employee, or consultant or spouse of such board member, |
3 | | employee, or consultant as a result of the investment |
4 | | transaction. For purposes of this subsection (e), a consultant |
5 | | includes an employee or agent of a consulting firm who has |
6 | | greater than 7.5% ownership of the consulting firm. |
7 | | Violation of this subsection (e) is a Class 4 felony. |
8 | | (Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.)
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