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1 | AN ACT in relation to 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 1-109.1 as follows:
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6 | (40 ILCS 5/1-109.1) (from Ch. 108 1/2, par. 1-109.1)
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7 | Sec. 1-109.1. Allocation and Delegation of Fiduciary | ||||||||||||||||||||||||
8 | Duties.
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9 | (1) Subject to the provisions of Section 22A-113 of this | ||||||||||||||||||||||||
10 | Code and
subsections (2) and (3) of this Section, the board of | ||||||||||||||||||||||||
11 | trustees of a
retirement system or pension fund established | ||||||||||||||||||||||||
12 | under this Code may:
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13 | (a) Appoint one or more investment managers as | ||||||||||||||||||||||||
14 | fiduciaries to manage
(including the power to acquire and | ||||||||||||||||||||||||
15 | dispose of) any assets of the
retirement system or pension | ||||||||||||||||||||||||
16 | fund; and
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17 | (b) Allocate duties among themselves and designate | ||||||||||||||||||||||||
18 | others as fiduciaries
to carry out specific fiduciary | ||||||||||||||||||||||||
19 | activities other than the management of the
assets of the | ||||||||||||||||||||||||
20 | retirement system or pension fund.
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21 | (2) The board of trustees of a pension fund established | ||||||||||||||||||||||||
22 | under Article 5, 6,
8, 9, 10, 11, 12 or 17 of this Code may not | ||||||||||||||||||||||||
23 | transfer its investment authority,
nor transfer the assets of | ||||||||||||||||||||||||
24 | the fund to any other person or entity for the
purpose of | ||||||||||||||||||||||||
25 | consolidating or merging its assets and management with any | ||||||||||||||||||||||||
26 | other
pension fund or public investment authority, unless the | ||||||||||||||||||||||||
27 | board resolution
authorizing the
such transfer is submitted for | ||||||||||||||||||||||||
28 | approval to the contributors and
pensioners of the fund at | ||||||||||||||||||||||||
29 | elections held not less than 30 days after the
adoption of such | ||||||||||||||||||||||||
30 | resolution by the board, and such resolution is approved by a
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31 | majority of the votes cast on the question in both the | ||||||||||||||||||||||||
32 | contributors election
and the pensioners election. The |
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1 | election procedures and qualifications
governing the election | ||||||
2 | of trustees shall govern the submission of resolutions
for | ||||||
3 | approval under this paragraph, insofar as they may be made | ||||||
4 | applicable.
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5 | (3) Pursuant to subsections (h) and (i) of Section 6 of | ||||||
6 | Article VII of
the Illinois Constitution, the investment | ||||||
7 | authority of boards of trustees
of retirement systems and | ||||||
8 | pension funds established under this Code is declared
to be a | ||||||
9 | subject of exclusive State jurisdiction, and the concurrent | ||||||
10 | exercise
by a home rule unit of any power affecting such | ||||||
11 | investment authority is
hereby specifically denied and | ||||||
12 | preempted.
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13 | (4) For the purposes of this Code, "emerging investment | ||||||
14 | manager" means a
qualified investment adviser that manages an | ||||||
15 | investment portfolio of at
least $10,000,000 or more but less | ||||||
16 | than $400,000,000 on January 1, 1993 and is a
"minority owned | ||||||
17 | business" or "female owned business" as those terms are
defined | ||||||
18 | in the Business Enterprise for Minorities,
Females, and Persons | ||||||
19 | with Disabilities Act.
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20 | It is hereby declared to be the public policy of the State | ||||||
21 | of Illinois to
encourage the trustees of public employee | ||||||
22 | retirement systems
to use emerging investment managers in | ||||||
23 | managing their system's assets to the
greatest extent feasible | ||||||
24 | within the bounds of financial and fiduciary
prudence, and to | ||||||
25 | take affirmative steps to remove any barriers to the full
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26 | participation of emerging investment managers in investment | ||||||
27 | opportunities
afforded by those retirement systems.
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28 | Each retirement system subject to this Code shall prepare a
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29 | report to be submitted to the Governor and the General Assembly | ||||||
30 | by
September 1 of each year. The report shall identify the | ||||||
31 | emerging
investment managers used by the system, the percentage | ||||||
32 | of the system's
assets under the investment control of emerging | ||||||
33 | investment managers, and
the actions it has undertaken to | ||||||
34 | increase the use of emerging investment
managers, including | ||||||
35 | encouraging other investment managers to use emerging
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36 | investment managers as subcontractors when the opportunity |
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1 | arises.
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2 | The use of an emerging investment manager does not | ||||||
3 | constitute a transfer
of investment authority for the purposes | ||||||
4 | of subsection (2) of this Section.
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5 | (Source: P.A. 92-16, eff. 6-28-01.)
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