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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0253
Introduced 2/3/2005, by Sen. Emil Jones, Jr. SYNOPSIS AS INTRODUCED:
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40 ILCS 5/1-109.1 |
from Ch. 108 1/2, par. 1-109.1 |
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Amends the Illinois Pension Code. Provides that the maximum value of the investment portfolio that an emerging investment manager manages is $2,000,000,000 (was, $400,000,000). Effective immediately.
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| PENSION IMPACT NOTE ACT MAY APPLY | |
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A BILL FOR
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SB0253 |
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LRB094 07452 AMC 37615 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 1-109.1 as follows:
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| (40 ILCS 5/1-109.1) (from Ch. 108 1/2, par. 1-109.1)
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| Sec. 1-109.1. Allocation and Delegation of Fiduciary |
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| Duties.
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| (1) Subject to the provisions of Section 22A-113 of this |
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| Code and
subsections (2) and (3) of this Section, the board of |
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| trustees of a
retirement system or pension fund established |
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| under this Code may:
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| (a) Appoint one or more investment managers as |
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| fiduciaries to manage
(including the power to acquire and |
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| dispose of) any assets of the
retirement system or pension |
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| fund; and
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| (b) Allocate duties among themselves and designate |
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| others as fiduciaries
to carry out specific fiduciary |
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| activities other than the management of the
assets of the |
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| retirement system or pension fund.
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| (2) The board of trustees of a pension fund established |
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| under Article 5, 6,
8, 9, 10, 11, 12 or 17 of this Code may not |
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| transfer its investment authority,
nor transfer the assets of |
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| the fund to any other person or entity for the
purpose of |
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| consolidating or merging its assets and management with any |
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| other
pension fund or public investment authority, unless the |
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| board resolution
authorizing such transfer is submitted for |
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| approval to the contributors and
pensioners of the fund at |
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| elections held not less than 30 days after the
adoption of such |
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| resolution by the board, and such resolution is approved by a
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| majority of the votes cast on the question in both the |
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| contributors election
and the pensioners election. The |
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SB0253 |
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LRB094 07452 AMC 37615 b |
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| election procedures and qualifications
governing the election |
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| of trustees shall govern the submission of resolutions
for |
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| approval under this paragraph, insofar as they may be made |
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| applicable.
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| (3) Pursuant to subsections (h) and (i) of Section 6 of |
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| Article VII of
the Illinois Constitution, the investment |
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| authority of boards of trustees
of retirement systems and |
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| pension funds established under this Code is declared
to be a |
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| subject of exclusive State jurisdiction, and the concurrent |
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| exercise
by a home rule unit of any power affecting such |
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| investment authority is
hereby specifically denied and |
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| preempted.
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| (4) For the purposes of this Code, "emerging investment |
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| manager" means a
qualified investment adviser that manages an |
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| investment portfolio of at
least $10,000,000 but less than |
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| $2,000,000,000
$400,000,000 on January 1, 1993 and is a
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| "minority owned business" or "female owned business" as those |
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| terms are
defined in the Business Enterprise for Minorities,
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| Females, and Persons with Disabilities Act.
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| It is hereby declared to be the public policy of the State |
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| of Illinois to
encourage the trustees of public employee |
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| retirement systems
to use emerging investment managers in |
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| managing their system's assets to the
greatest extent feasible |
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| within the bounds of financial and fiduciary
prudence, and to |
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| take affirmative steps to remove any barriers to the full
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| participation of emerging investment managers in investment |
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| opportunities
afforded by those retirement systems.
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| Each retirement system subject to this Code shall prepare a
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| report to be submitted to the Governor and the General Assembly |
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| by
September 1 of each year. The report shall identify the |
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| emerging
investment managers used by the system, the percentage |
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| of the system's
assets under the investment control of emerging |
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| investment managers, and
the actions it has undertaken to |
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| increase the use of emerging investment
managers, including |
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| encouraging other investment managers to use emerging
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| investment managers as subcontractors when the opportunity |