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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 3. The Department of Professional Regulation Law of | ||||||
5 | the
Civil Administrative Code of Illinois is amended by | ||||||
6 | changing Section 2105-300 as follows:
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7 | (20 ILCS 2105/2105-300) (was 20 ILCS 2105/61e)
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8 | Sec. 2105-300. Professions Indirect Cost Fund; | ||||||
9 | allocations;
analyses. | ||||||
10 | (a) Appropriations for the direct and allocable indirect | ||||||
11 | costs of licensing
and regulating each regulated profession, | ||||||
12 | trade, occupation, or industry are intended to
be payable from | ||||||
13 | the fees and fines that are assessed and collected from that
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14 | profession, trade, occupation, or industry, to the extent that | ||||||
15 | those fees and fines are
sufficient. In any fiscal year in | ||||||
16 | which the fees and fines generated by a
specific profession, | ||||||
17 | trade, occupation, or industry are insufficient to finance the
| ||||||
18 | necessary direct and allocable indirect costs of licensing and | ||||||
19 | regulating that
profession, trade,
occupation, or industry, | ||||||
20 | the remainder of those costs shall be
financed from | ||||||
21 | appropriations payable from revenue sources other than fees and
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22 | fines. The direct and allocable indirect costs of the | ||||||
23 | Department identified in
its cost allocation plans that are not |
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1 | attributable to the licensing and
regulation of a specific | ||||||
2 | profession, trade, or occupation, or industry or group of
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3 | professions, trades, occupations, or industries shall be | ||||||
4 | financed from appropriations from
revenue sources other than | ||||||
5 | fees and fines.
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6 | (b) The Professions Indirect Cost Fund is hereby created as | ||||||
7 | a special fund
in the State Treasury. Except as provided in | ||||||
8 | subsection (e), the The Fund may receive transfers of moneys | ||||||
9 | authorized by
the Department from the cash balances in special
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10 | funds that receive revenues from the fees and fines associated | ||||||
11 | with the
licensing of regulated professions, trades, | ||||||
12 | occupations, and industries by the Department.
Moneys in the | ||||||
13 | Fund shall be invested and earnings on the investments shall
be | ||||||
14 | retained in the Fund.
Subject to appropriation, the Department | ||||||
15 | shall use moneys in the Fund to pay
the ordinary and necessary | ||||||
16 | allocable indirect expenses associated with each of
the | ||||||
17 | regulated professions, trades,
occupations, and industries.
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18 | (c) Before the beginning of each fiscal year, the | ||||||
19 | Department shall prepare
a cost allocation analysis to be used | ||||||
20 | in establishing the necessary
appropriation levels for each | ||||||
21 | cost purpose and revenue source. At the
conclusion of each | ||||||
22 | fiscal year, the Department shall prepare a cost allocation
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23 | analysis reflecting the extent of the variation between how the | ||||||
24 | costs were
actually financed in that year and the planned cost | ||||||
25 | allocation for that year.
Variations between the planned and | ||||||
26 | actual cost allocations for the prior fiscal
year shall be |
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1 | adjusted into the Department's planned cost allocation for the
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2 | next fiscal year.
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3 | Each cost allocation analysis shall separately identify | ||||||
4 | the direct and
allocable indirect costs of each regulated | ||||||
5 | profession, trade, occupation, or industry and
the costs of the | ||||||
6 | Department's general public health and safety purposes.
The | ||||||
7 | analyses shall determine whether the direct and allocable | ||||||
8 | indirect
costs of each regulated profession, trade,
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9 | occupation, or industry and the costs of the
Department's | ||||||
10 | general public health and safety purposes are sufficiently
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11 | financed from their respective funding sources. The Department | ||||||
12 | shall prepare
the cost allocation analyses in consultation with | ||||||
13 | the respective regulated
professions, trades, occupations, and | ||||||
14 | industries and shall make copies of the analyses
available to | ||||||
15 | them in a timely fashion.
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16 | (d) Except as provided in subsection (e), the The | ||||||
17 | Department may direct the State Comptroller and Treasurer to
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18 | transfer moneys from the special funds that receive fees and | ||||||
19 | fines associated
with regulated professions, trades, | ||||||
20 | occupations, and industries into the Professions
Indirect Cost | ||||||
21 | Fund in accordance with the Department's cost allocation | ||||||
22 | analysis
plan for the applicable fiscal year. For a given | ||||||
23 | fiscal year, the Department
shall not direct the transfer of | ||||||
24 | moneys under this subsection from a special
fund associated | ||||||
25 | with a specific regulated profession, trade, occupation, or | ||||||
26 | industry (or
group of professions, trades, occupations, or |
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1 | industries) in an amount exceeding the
allocable indirect costs | ||||||
2 | associated with that profession, trade, occupation, or | ||||||
3 | industry
(or group of professions, trades, occupations, or | ||||||
4 | industries) as provided in the cost
allocation analysis for | ||||||
5 | that fiscal year and adjusted for allocation variations
from | ||||||
6 | the prior fiscal year. No direct costs identified in the cost | ||||||
7 | allocation
plan shall be used as a basis for transfers into the | ||||||
8 | Professions Indirect Cost
Fund or for expenditures from the | ||||||
9 | Fund.
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10 | (e) No transfer may be made to the Professions Indirect | ||||||
11 | Cost Fund under this Section from the Public Pension Regulation | ||||||
12 | Fund. | ||||||
13 | (Source: P.A. 94-91, eff. 7-1-05.)
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14 | Section 5. The Pension Impact Note Act is amended by | ||||||
15 | changing Section 3 as follows:
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16 | (25 ILCS 55/3) (from Ch. 63, par. 42.43)
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17 | Sec. 3. Content of pension impact note. | ||||||
18 | (a) The pension impact note shall be factual in nature, as | ||||||
19 | brief and
concise as may be, and shall provide a reliable | ||||||
20 | estimate of the impact of the bill on
any public pension | ||||||
21 | systems to be effected by it, in dollars where appropriate,
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22 | and, in addition,
it shall include both the immediate effect | ||||||
23 | and, if determinable or reasonably
foreseeable,
the long range | ||||||
24 | effect of the measure. If, after careful investigation, it
is |
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1 | determined that no
dollar estimate is possible, the note shall | ||||||
2 | contain a statement to that effect, setting
forth the reasons | ||||||
3 | why no dollar estimate can be given. A brief summary or work | ||||||
4 | sheet
of computations used in arriving at pension impact note | ||||||
5 | figures shall be included.
| ||||||
6 | (b) The pension impact note for any legislation or | ||||||
7 | amendment that the Commission on Government Forecasting and | ||||||
8 | Accountability determines would result in an increase in | ||||||
9 | benefits or increased costs to a pension fund established under | ||||||
10 | Article 3 or 4 of the Illinois Pension Code may demonstrate the | ||||||
11 | fiscal impact of the legislation being considered on selected | ||||||
12 | individual municipalities with such pension funds. | ||||||
13 | (Source: P.A. 79-1397.)
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14 | Section 7. The State Finance Act is amended by changing | ||||||
15 | Section 8f as follows:
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16 | (30 ILCS 105/8f)
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17 | Sec. 8f. Public Pension Regulation Fund. The Public Pension | ||||||
18 | Regulation
Fund is created in the State Treasury. Except as | ||||||
19 | otherwise provided in the
Illinois Pension Code, all money | ||||||
20 | received by the Department of Financial and Professional | ||||||
21 | Regulation, as successor to the Illinois Department of
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22 | Insurance, under the Illinois Pension Code shall be paid into | ||||||
23 | the Fund. Moneys in the Fund may be transferred to the | ||||||
24 | Professions Indirect Cost Fund, as authorized under Section |
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1 | 2105-300 of the Department of Professional Regulation Law of | ||||||
2 | the Civil Administrative Code of Illinois. The
State Treasurer | ||||||
3 | promptly shall invest the money in the Fund, and all earnings
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4 | that accrue on the money in the Fund shall be credited to the | ||||||
5 | Fund. No money
may be transferred from this Fund to any other | ||||||
6 | fund. The General Assembly may
make appropriations from this | ||||||
7 | Fund for the ordinary and contingent expenses of
the Public | ||||||
8 | Pension Division of the Illinois Department of Insurance.
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9 | (Source: P.A. 94-91, eff. 7-1-05.)
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10 | Section 10. The Illinois Pension Code is amended by | ||||||
11 | changing Sections 1-110, 1-113.5, 1A-104, 3-143, and 4-134 and | ||||||
12 | by adding Sections 1-125, 3-141.1, 3-144.5, 4-138.5, and | ||||||
13 | 22-1004 as follows:
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14 | (40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110)
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15 | Sec. 1-110. Prohibited Transactions.
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16 | (a) A fiduciary with respect to a retirement system or | ||||||
17 | pension fund shall
not cause the retirement system or pension | ||||||
18 | fund to engage in a transaction if
he or she knows or should | ||||||
19 | know that such transaction constitutes a direct or
indirect:
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20 | (1) Sale or exchange, or leasing of any property from | ||||||
21 | the retirement
system
or pension fund to a party in | ||||||
22 | interest for less than adequate consideration,
or from a | ||||||
23 | party in interest to a retirement system or pension fund | ||||||
24 | for more
than adequate consideration.
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1 | (2) Lending of money or other extension of credit from | ||||||
2 | the retirement
system or pension fund to a party in | ||||||
3 | interest without the receipt of adequate
security and a | ||||||
4 | reasonable rate of interest, or from a party in interest to
| ||||||
5 | a retirement system or pension fund with the provision of | ||||||
6 | excessive security
or an unreasonably high rate of | ||||||
7 | interest.
| ||||||
8 | (3) Furnishing of goods, services or facilities from | ||||||
9 | the retirement
system or pension fund to a party in | ||||||
10 | interest for less than adequate
consideration, or from a | ||||||
11 | party in interest to a retirement system or
pension fund | ||||||
12 | for more than adequate consideration.
| ||||||
13 | (4) Transfer to, or use by or for the benefit of, a | ||||||
14 | party in interest
of any assets of a retirement system or | ||||||
15 | pension fund for less than adequate
consideration.
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16 | (b) A fiduciary with respect to a retirement system or | ||||||
17 | pension fund
established under this Code shall not:
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18 | (1) Deal with the assets of the retirement system or | ||||||
19 | pension fund in his
own interest or for his own account;
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20 | (2) In his individual or any other capacity act in any | ||||||
21 | transaction
involving the retirement system or pension | ||||||
22 | fund on behalf of a party whose
interests are adverse to | ||||||
23 | the interests of the retirement system or pension fund
or | ||||||
24 | the interests of its participants or beneficiaries; or
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25 | (3) Receive any consideration for his own personal | ||||||
26 | account from any party
dealing with the retirement system |
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1 | or pension fund in connection with a
transaction involving | ||||||
2 | the assets of the retirement system or pension
fund.
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3 | (c) Nothing in this Section shall be construed to prohibit | ||||||
4 | any trustee from:
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5 | (1) Receiving any benefit to which he may be entitled | ||||||
6 | as a participant
or beneficiary in the retirement system or | ||||||
7 | pension fund.
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8 | (2) Receiving any reimbursement of expenses properly | ||||||
9 | and actually incurred
in the performance of his duties with | ||||||
10 | the retirement system or pension fund.
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11 | (3) Serving as a trustee in addition to being an | ||||||
12 | officer, employee, agent
or other representative of a party | ||||||
13 | in interest.
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14 | (d) A fiduciary of a pension fund established under Article | ||||||
15 | 3 or 4 shall
not knowingly cause or advise the pension fund to | ||||||
16 | engage in an investment transaction when the fiduciary (i) has | ||||||
17 | any direct interest in
the income, gains, or profits of the | ||||||
18 | investment advisor through which the investment transaction is | ||||||
19 | made or (ii) has a business relationship with that investment | ||||||
20 | advisor that would result in a pecuniary benefit to the | ||||||
21 | fiduciary as a result of the investment transaction. | ||||||
22 | Violation of this subsection (d) is a Class 4 felony.
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23 | (Source: P.A. 88-535.)
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24 | (40 ILCS 5/1-113.5)
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25 | Sec. 1-113.5. Investment advisers and investment services.
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1 | (a) The board of trustees of a pension fund may appoint | ||||||
2 | investment advisers
as defined in Section 1-101.4. The board of | ||||||
3 | any pension fund investing in
common or preferred stock under | ||||||
4 | Section 1-113.4 shall appoint an investment
adviser before | ||||||
5 | making such investments.
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6 | The investment adviser shall be a fiduciary, as defined in | ||||||
7 | Section 1-101.2,
with respect to the pension fund and shall be | ||||||
8 | one of the following:
| ||||||
9 | (1) an investment adviser registered under the federal | ||||||
10 | Investment Advisers
Act of 1940 and the Illinois Securities | ||||||
11 | Law of 1953;
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12 | (2) a bank or trust company authorized to conduct a | ||||||
13 | trust business in
Illinois;
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14 | (3) a life insurance company authorized to transact | ||||||
15 | business in Illinois;
or
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16 | (4) an investment company as defined and registered | ||||||
17 | under the federal
Investment Company Act of 1940 and | ||||||
18 | registered under the Illinois Securities Law
of 1953.
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19 | (a-5) Notwithstanding any other provision of law, a person | ||||||
20 | or entity that provides consulting services (referred to as a | ||||||
21 | "consultant" in this Section) to a pension fund with respect to | ||||||
22 | the selection of fiduciaries may not be awarded a contract to | ||||||
23 | provide those consulting services that is more than 5 years in | ||||||
24 | duration. No contract to provide such consulting services may | ||||||
25 | be renewed or extended. At the end of the term of a contract, | ||||||
26 | however, the contractor is eligible to compete for a new |
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1 | contract. No person shall attempt to avoid or contravene the | ||||||
2 | restrictions of this subsection by any means. All offers from | ||||||
3 | responsive offerors shall be accompanied by disclosure of the | ||||||
4 | names and addresses of the following: | ||||||
5 | (1) The offeror. | ||||||
6 | (2) Any entity that is a parent of, or owns a | ||||||
7 | controlling interest in, the offeror. | ||||||
8 | (3) Any entity that is a subsidiary of, or in which a | ||||||
9 | controlling interest is owned by, the offeror. | ||||||
10 | Beginning on July 1, 2008, a person, other than a trustee | ||||||
11 | or an employee of a pension fund or retirement system, may not | ||||||
12 | act as a consultant under this Section unless that person is at | ||||||
13 | least one of the following: (i) registered as an investment | ||||||
14 | adviser under the federal Investment Advisers Act of 1940 (15 | ||||||
15 | U.S.C. 80b-1, et seq.); (ii) registered as an investment | ||||||
16 | adviser under the Illinois Securities Law of 1953; (iii) a | ||||||
17 | bank, as defined in the Investment Advisers Act of 1940; or | ||||||
18 | (iv) an insurance company authorized to transact business in | ||||||
19 | this State. | ||||||
20 | (b) All investment advice and services provided by an | ||||||
21 | investment adviser
or a consultant appointed under this Section | ||||||
22 | shall be rendered pursuant to a written contract
between the | ||||||
23 | investment adviser and the board, and in accordance with the
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24 | board's investment policy.
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25 | The contract shall include all of the following:
| ||||||
26 | (1) acknowledgement in writing by the investment |
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1 | adviser that he or she
is a fiduciary with respect to the | ||||||
2 | pension fund;
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3 | (2) the board's investment policy;
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4 | (3) full disclosure of direct and indirect fees, | ||||||
5 | commissions, penalties,
and any other compensation that | ||||||
6 | may be received by the investment adviser,
including | ||||||
7 | reimbursement for expenses; and
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8 | (4) a requirement that the investment adviser submit | ||||||
9 | periodic written
reports, on at least a quarterly basis, | ||||||
10 | for the board's review at its regularly
scheduled meetings. | ||||||
11 | All returns on investment shall be reported as net returns
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12 | after payment of all fees, commissions, and any other | ||||||
13 | compensation.
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14 | (b-5) Each contract described in subsection (b) shall also | ||||||
15 | include (i) full disclosure of direct and indirect fees, | ||||||
16 | commissions, penalties, and other compensation, including
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17 | reimbursement for expenses, that may be paid by or on behalf of | ||||||
18 | the investment adviser or consultant in connection with the | ||||||
19 | provision of services to the pension fund and (ii) a | ||||||
20 | requirement that the investment adviser or consultant update | ||||||
21 | the disclosure promptly after a modification of those payments | ||||||
22 | or an additional payment. | ||||||
23 | Within 30 days after the effective date of this amendatory | ||||||
24 | Act of the 95th General Assembly, each investment adviser and | ||||||
25 | consultant providing services on the effective date or subject | ||||||
26 | to an existing contract for the provision of services must |
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1 | disclose to the board of trustees all direct and indirect fees, | ||||||
2 | commissions, penalties, and other compensation paid by or on
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3 | behalf of the investment adviser or consultant in connection | ||||||
4 | with the provision of those services and shall update that | ||||||
5 | disclosure promptly after a modification of those payments or | ||||||
6 | an additional payment. | ||||||
7 | A person required to make a disclosure under subsection (d) | ||||||
8 | is also required to disclose direct and indirect fees, | ||||||
9 | commissions, penalties, or other compensation that shall or may | ||||||
10 | be paid by or on behalf of the person in connection with the | ||||||
11 | rendering of those services. The person shall update the | ||||||
12 | disclosure promptly after a modification of those payments or | ||||||
13 | an additional payment. | ||||||
14 | The disclosures required by this subsection shall be in | ||||||
15 | writing and shall include the date and amount of each payment | ||||||
16 | and the name and address of each recipient of a payment. | ||||||
17 | (c) Within 30 days after appointing an investment adviser | ||||||
18 | or consultant , the board shall
submit a copy of the contract to | ||||||
19 | the Division Department of Insurance of the Department of | ||||||
20 | Financial and Professional Regulation .
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21 | (d) Investment services provided by a person other than an | ||||||
22 | investment
adviser appointed under this Section, including but | ||||||
23 | not limited to services
provided by the kinds of persons listed | ||||||
24 | in items (1) through (4) of subsection
(a), shall be rendered | ||||||
25 | only after full written disclosure of direct and
indirect fees, | ||||||
26 | commissions, penalties, and any other compensation that shall |
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1 | or
may be received by the person rendering those services.
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2 | (e) The board of trustees of each pension fund shall retain | ||||||
3 | records of
investment transactions in accordance with the rules | ||||||
4 | of the Department of
Financial and Professional Regulation | ||||||
5 | Insurance .
| ||||||
6 | (Source: P.A. 90-507, eff. 8-22-97.)
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7 | (40 ILCS 5/1-125 new)
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8 | Sec. 1-125. Prohibition on gifts. | ||||||
9 | (a) For the purposes of this Section: | ||||||
10 | "Gift" means a gift as defined in Section 1-5 of the State | ||||||
11 | Officials and Employees Ethics Act. | ||||||
12 | "Prohibited source" means a person or entity who: | ||||||
13 | (i) is seeking official action (A) by the board or (B) | ||||||
14 | by a board member; | ||||||
15 | (ii) does business or seeks to do business (A) with the | ||||||
16 | board or (B) with a board member; | ||||||
17 | (iii) has interests that may be substantially affected | ||||||
18 | by the performance or non-performance of the official | ||||||
19 | duties of the board member; or | ||||||
20 | (iv) is registered or required to be registered with | ||||||
21 | the Secretary of State under the Lobbyist Registration Act, | ||||||
22 | except that an entity not otherwise a prohibited source | ||||||
23 | does not become a prohibited source merely because a | ||||||
24 | registered lobbyist is one of its members or serves on its | ||||||
25 | board of directors. |
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1 | (b) No trustee of a board created under Article 3 or 4 of | ||||||
2 | this Code shall intentionally solicit or accept any gift from | ||||||
3 | any prohibited source as prescribed in Article 10 of the State | ||||||
4 | Officials and Employees Ethics Act, including the exceptions | ||||||
5 | contained in Section 10-15 of that Act, other than paragraphs | ||||||
6 | (4) and (5) of that Section. Solicitation or acceptance of | ||||||
7 | educational materials, however, is not prohibited. For the | ||||||
8 | purposes of this Section, references to "State employee" and | ||||||
9 | "employee" in Article 10 of the State Officials and Employees | ||||||
10 | Ethics Act shall include a trustee of a board created under | ||||||
11 | Article 3 or 4 of this Code. | ||||||
12 | (c) A municipality may adopt or maintain policies or | ||||||
13 | ordinances that are more restrictive than those set forth in | ||||||
14 | this Section and may continue to follow any existing policies | ||||||
15 | or ordinances that are more restrictive or are in addition to | ||||||
16 | those set forth in this Section. | ||||||
17 | (d) Violation of this Section is a Class A misdemeanor.
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18 | (40 ILCS 5/1A-104)
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19 | Sec. 1A-104. Examinations and investigations.
| ||||||
20 | (a) The Division shall make periodic examinations and | ||||||
21 | investigations of all
pension funds established under this Code | ||||||
22 | and maintained for the benefit of
employees and officers of | ||||||
23 | governmental units in the State of Illinois.
However, in lieu | ||||||
24 | of making an examination and investigation, the Division
may | ||||||
25 | accept and rely upon a report of audit or examination of any |
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| |||||||
1 | pension fund
made by an independent certified public accountant | ||||||
2 | pursuant to the provisions
of the Article of this Code | ||||||
3 | governing the pension fund. The acceptance of the
report of | ||||||
4 | audit or examination does not bar the Division from making a | ||||||
5 | further
audit, examination, and investigation if deemed | ||||||
6 | necessary by the Division.
| ||||||
7 | The Department may implement a flexible system of | ||||||
8 | examinations under
which it directs resources as it deems | ||||||
9 | necessary or appropriate. In
consultation with the pension fund | ||||||
10 | being examined, the Division may retain
attorneys, independent | ||||||
11 | actuaries, independent certified public accountants, and
other | ||||||
12 | professionals and specialists as examiners, the cost of which | ||||||
13 | (except in
the case of pension funds established under Article | ||||||
14 | 3 or 4) shall be borne by
the pension fund that is the subject | ||||||
15 | of the examination.
| ||||||
16 | (b) The Division shall examine or investigate each pension | ||||||
17 | fund established
under Article 3 or Article 4 of this Code. The | ||||||
18 | schedule of each examination shall be such that each fund shall | ||||||
19 | be examined once every 3 years.
| ||||||
20 | Each examination shall include the following:
| ||||||
21 | (1) an audit of financial transactions, investment | ||||||
22 | policies, and
procedures;
| ||||||
23 | (2) an examination of books, records, documents, | ||||||
24 | files, and other
pertinent memoranda relating to | ||||||
25 | financial, statistical, and administrative
operations;
| ||||||
26 | (3) a review of policies and procedures maintained for |
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| |||||||
1 | the administration
and operation of the pension fund;
| ||||||
2 | (4) a determination of whether or not full effect is | ||||||
3 | being given to the
statutory provisions governing the | ||||||
4 | operation of the pension fund;
| ||||||
5 | (5) a determination of whether or not the | ||||||
6 | administrative policies in force
are in accord with the | ||||||
7 | purposes of the statutory provisions and effectively
| ||||||
8 | protect and preserve the rights and equities of the | ||||||
9 | participants; and
| ||||||
10 | (6) a determination of whether or not proper financial | ||||||
11 | and statistical
records have been established and adequate | ||||||
12 | documentary evidence is recorded and
maintained in support | ||||||
13 | of the several types of annuity and benefit payments
being | ||||||
14 | made ; and .
| ||||||
15 | (7) a determination of whether or not the calculations | ||||||
16 | made by the fund for the payment of all annuities and | ||||||
17 | benefits are accurate. | ||||||
18 | In addition, the Division may conduct investigations, | ||||||
19 | which shall be
identified as such and which may include one or | ||||||
20 | more of the items listed in
this subsection.
| ||||||
21 | A copy of the report of examination or investigation as | ||||||
22 | prepared by the
Division shall be submitted to the secretary of | ||||||
23 | the board of trustees of the
pension fund examined or | ||||||
24 | investigated and to the chief executive officer of the | ||||||
25 | municipality . The Director, upon request, shall grant
a hearing | ||||||
26 | to the officers or trustees of the pension fund or their duly
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1 | appointed representatives, upon any facts contained in the | ||||||
2 | report of
examination. The hearing shall be conducted before | ||||||
3 | filing the report or making
public any information contained in | ||||||
4 | the report. The Director may withhold the
report from public | ||||||
5 | inspection for up to 60 days following the hearing.
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6 | (Source: P.A. 90-507, eff. 8-22-97.)
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7 | (40 ILCS 5/3-141.1 new) | ||||||
8 | Sec. 3-141.1. Award of benefits. Prior to the board's | ||||||
9 | determination of benefits, the board shall provide, in writing, | ||||||
10 | the total amount of the annuity for a member and all | ||||||
11 | information used in the calculation of that benefit to the | ||||||
12 | Treasurer of the municipality. If the Treasurer is of the | ||||||
13 | opinion that the calculated annuity is incorrect, the Treasurer | ||||||
14 | shall immediately notify the board. The board shall review the | ||||||
15 | Treasurer's findings, and if the board concurs that an error | ||||||
16 | exists it shall re-determine the annuity so that it is | ||||||
17 | calculated in accordance with the Illinois Pension Code.
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18 | (40 ILCS 5/3-143) (from Ch. 108 1/2, par. 3-143)
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19 | Sec. 3-143. Report by pension board. | ||||||
20 | (a) The pension board shall report annually to the city
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21 | council or board of trustees of the municipality on the | ||||||
22 | condition of the
pension fund at the end of its most recently | ||||||
23 | completed fiscal year. The
report shall be made prior to the | ||||||
24 | council or board meeting held for the levying
of taxes for the |
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| |||||||
1 | year for which the report is made.
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2 | The pension board shall certify and provide the following | ||||||
3 | information to the city council or board of trustees of the | ||||||
4 | municipality :
| ||||||
5 | (1) the total assets of the fund in its custody at the | ||||||
6 | end of the fiscal
year and the current market value of | ||||||
7 | those assets ;
| ||||||
8 | (2) the estimated receipts during the next succeeding | ||||||
9 | fiscal year from
deductions from the salaries of police | ||||||
10 | officers, and
from all other sources;
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11 | (3) the estimated amount required during the next | ||||||
12 | succeeding fiscal year
to (a) pay all pensions and other | ||||||
13 | obligations provided
in this Article, and (b) to meet the | ||||||
14 | annual requirements of the fund as
provided in Sections | ||||||
15 | 3-125 and 3-127; and
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16 | (4) the total net income received from investment of | ||||||
17 | assets along with the assumed investment return and actual | ||||||
18 | investment return received by the fund during its most | ||||||
19 | recently completed fiscal year , compared to the total net
| ||||||
20 | such income , assumed investment return, and actual | ||||||
21 | investment return received during the preceding fiscal | ||||||
22 | year ; .
| ||||||
23 | (5) the total number of active employees who are | ||||||
24 | financially contributing to the fund; | ||||||
25 | (6) the total amount that was disbursed in benefits | ||||||
26 | during the fiscal year, including the number of and total |
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| |||||||
1 | amount disbursed to (i) annuitants in receipt of a regular | ||||||
2 | retirement pension, (ii) recipients being paid a | ||||||
3 | disability pension, and (iii) survivors and children in | ||||||
4 | receipt of benefits; | ||||||
5 | (7) the funded ratio of the fund; | ||||||
6 | (8) the unfunded liability carried by the fund, along | ||||||
7 | with an actuarial explanation of the unfunded liability; | ||||||
8 | and | ||||||
9 | (9) the investment policy of the pension board under | ||||||
10 | the statutory investment restrictions imposed on the fund. | ||||||
11 | Before the pension board makes its report, the municipality | ||||||
12 | shall have the assets
of the fund and their current market | ||||||
13 | value verified by an independent certified
public accountant of | ||||||
14 | its choice.
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15 | (b) The municipality is authorized to publish the report | ||||||
16 | submitted under this Section. This publication may be made, | ||||||
17 | without limitation, by publication in a local newspaper of | ||||||
18 | general circulation in the municipality or by publication on | ||||||
19 | the municipality's Internet website. If the municipality | ||||||
20 | publishes the report, then that publication must include all of | ||||||
21 | the information submitted by the pension board under subsection | ||||||
22 | (a). | ||||||
23 | (Source: P.A. 90-507, eff. 8-22-97.)
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24 | (40 ILCS 5/3-144.5 new)
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25 | Sec. 3-144.5. Fraud. Any person, member, trustee, or |
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1 | employee of the board who knowingly
makes any false statement | ||||||
2 | or falsifies or permits to be falsified any
record of a fund in | ||||||
3 | any attempt to defraud such fund as a
result of such act, or | ||||||
4 | intentionally or knowingly defrauds a fund in any manner, is | ||||||
5 | guilty of a Class A misdemeanor.
| ||||||
6 | (40 ILCS 5/4-134) (from Ch. 108 1/2, par. 4-134)
| ||||||
7 | Sec. 4-134. Report for tax levy. The board shall report to | ||||||
8 | the city council
or board of trustees of the municipality on | ||||||
9 | the condition of the pension fund
at the end of its most | ||||||
10 | recently completed fiscal year. The report shall
be made prior | ||||||
11 | to the council or board meeting held for appropriating and
| ||||||
12 | levying taxes for the year for which the report is made.
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13 | (a) The pension board in the report shall certify and | ||||||
14 | provide the following information to the city council or board | ||||||
15 | of trustees of the municipality :
| ||||||
16 | (1) the total assets of the fund and their current | ||||||
17 | market value of those assets ;
| ||||||
18 | (2) the estimated receipts during the next succeeding | ||||||
19 | fiscal year from
deductions from the salaries or wages
of | ||||||
20 | firefighters, and from all other sources;
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21 | (3) the estimated amount necessary during the fiscal | ||||||
22 | year to meet the
annual actuarial requirements of the | ||||||
23 | pension fund as
provided in Sections 4-118 and 4-120;
| ||||||
24 | (4) the total net income received from investment of | ||||||
25 | assets along with the assumed investment return and actual |
| |||||||
| |||||||
1 | investment return received by the fund during its most | ||||||
2 | recently completed fiscal year , compared to the total net
| ||||||
3 | such income , assumed investment return, and actual | ||||||
4 | investment return received during the preceding fiscal | ||||||
5 | year; and | ||||||
6 | (5) the increase in employer pension contributions | ||||||
7 | that results from the implementation of the provisions of | ||||||
8 | this amendatory Act of the 93rd General Assembly ; .
| ||||||
9 | (6) the total number of active employees who are | ||||||
10 | financially contributing to the fund; | ||||||
11 | (7) the total amount that was disbursed in benefits | ||||||
12 | during the fiscal year, including the number of and total | ||||||
13 | amount disbursed to (i) annuitants in receipt of a regular | ||||||
14 | retirement pension, (ii) recipients being paid a | ||||||
15 | disability pension, and (iii) survivors and children in | ||||||
16 | receipt of benefits; | ||||||
17 | (8) the funded ratio of the fund; | ||||||
18 | (9) the unfunded liability carried by the fund, along | ||||||
19 | with an actuarial explanation of the unfunded liability; | ||||||
20 | and | ||||||
21 | (10) the investment policy of the pension board under | ||||||
22 | the statutory investment restrictions imposed on the fund. | ||||||
23 | Before the pension board makes its report, the municipality | ||||||
24 | shall have the assets
of the fund and
their current market | ||||||
25 | value verified by an independent certified public
accountant of | ||||||
26 | its choice.
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| |||||||
1 | (b) The municipality is authorized to publish the report | ||||||
2 | submitted under this Section. This publication may be made, | ||||||
3 | without limitation, by publication in a local newspaper of | ||||||
4 | general circulation in the municipality or by publication on | ||||||
5 | the municipality's Internet website. If the municipality | ||||||
6 | publishes the report, then that publication must include all of | ||||||
7 | the information submitted by the pension board under subsection | ||||||
8 | (a). | ||||||
9 | (Source: P.A. 93-689, eff. 7-1-04.)
| ||||||
10 | (40 ILCS 5/4-138.5 new)
| ||||||
11 | Sec. 4-138.5. Fraud. Any person, member, trustee, or | ||||||
12 | employee of the board who knowingly
makes any false statement | ||||||
13 | or falsifies or permits to be falsified any
record of a fund in | ||||||
14 | any attempt to defraud such fund as a
result of such act, or | ||||||
15 | intentionally or knowingly defrauds a fund in any manner, is | ||||||
16 | guilty of a Class A misdemeanor. | ||||||
17 | (40 ILCS 5/22-1004 new)
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18 | Sec. 22-1004. Commission on Government Forecasting and | ||||||
19 | Accountability report on Articles 3 and 4 funds. Each odd | ||||||
20 | numbered year, the Commission on Government Forecasting and | ||||||
21 | Accountability shall analyze data submitted by the Public | ||||||
22 | Pension Division of the Illinois Department of Financial and | ||||||
23 | Professional Regulation pertaining to the pension systems | ||||||
24 | established under Article 3 and Article 4 of this Code. The |
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1 | Commission shall issue a formal report during such years, the | ||||||
2 | content of which is, to the extent practicable, to be similar | ||||||
3 | in nature to that required under Section 22-1003. In addition | ||||||
4 | to providing aggregate analyses of both systems, the report | ||||||
5 | shall analyze the fiscal status and provide forecasting | ||||||
6 | projections for selected individual funds in each system. To | ||||||
7 | the fullest extent practicable, the report shall analyze | ||||||
8 | factors that affect each selected individual fund's unfunded | ||||||
9 | liability and any actuarial gains and losses caused by salary | ||||||
10 | increases, investment returns, employer contributions, benefit | ||||||
11 | increases, change in assumptions, the difference in employer | ||||||
12 | contributions and the normal cost plus interest, and any other | ||||||
13 | applicable factors. In analyzing net investment returns, the | ||||||
14 | report shall analyze the assumed investment return compared to | ||||||
15 | the actual investment return over the preceding 10 fiscal | ||||||
16 | years. The Public Pension Division of the Department of | ||||||
17 | Financial and Professional Regulation shall provide to the | ||||||
18 | Commission any assistance that the Commission may request with | ||||||
19 | respect to its report under this Section.
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20 | Section 90. The State Mandates Act is amended by adding | ||||||
21 | Section 8.32 as follows: | ||||||
22 | (30 ILCS 805/8.32 new)
| ||||||
23 | Sec. 8.32. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
24 | of this Act, no reimbursement by the State is required for the |
| |||||||
| |||||||
1 | implementation of any mandate created by this amendatory Act of | ||||||
2 | the 95th General Assembly.
| ||||||
3 | Section 99. Effective date. This Act takes effect upon | ||||||
4 | becoming law.
|