|
|
|||||||
| |||||||
| |||||||
| 1 | HOUSE RESOLUTION
| ||||||
| 2 | WHEREAS, Illinois State employees and State employee | ||||||
| 3 | deferred-compensation plan participants have invested | ||||||
| 4 | approximately $3.0 billion in 401(k) retirement savings moneys | ||||||
| 5 | held within plans supervised by the Illinois State Board of | ||||||
| 6 | Investments (ISBI); and
| ||||||
| 7 | WHEREAS, Currently, the majority of the moneys invested in | ||||||
| 8 | these retirement savings plans are invested in mutual funds | ||||||
| 9 | chosen by the employees and participants; and
| ||||||
| 10 | WHEREAS, Most of these mutual funds have publicly quoted | ||||||
| 11 | prices and relatively transparent investment strategies known | ||||||
| 12 | and understood by the investors who have chosen them; and
| ||||||
| 13 | WHEREAS, A current rule change submitted by the Illinois | ||||||
| 14 | State Board of Investments to the Joint Committee on | ||||||
| 15 | Administrative Rules (JCAR), 80 Ill. Adm. Code 2700, set for a | ||||||
| 16 | hearing by JCAR at its scheduled meeting on October 16, 2008, | ||||||
| 17 | would make various changes to the rules governing Illinois | ||||||
| 18 | employee deferred compensation plans, including the change of | ||||||
| 19 | all references from the phrase "investment funds" to the phrase | ||||||
| 20 | "investment options", and concerns have been raised that this | ||||||
| 21 | change could be legal language intended to signal a potential | ||||||
| 22 | desire by the current ISBI Board to move away from a | ||||||
| |||||||
| |||||||
| 1 | mutual-funds-based model of investment for State employees' | ||||||
| 2 | 401(k) savings; and
| ||||||
| 3 | WHEREAS, At the current time there is a relatively high | ||||||
| 4 | degree of investment instability in global equity markets; and
| ||||||
| 5 | WHEREAS, Times of uncertainty make it even more important | ||||||
| 6 | that we consider carefully any proposed changes in State | ||||||
| 7 | investment policies; and
| ||||||
| 8 | WHEREAS, These factors are redoubled when the money at | ||||||
| 9 | issue is money that has been entrusted to ISBI's safekeeping by | ||||||
| 10 | State employees and savings plan participants; their desires | ||||||
| 11 | should be the controlling factor in any decision or decisions | ||||||
| 12 | the State may make on policies of this sort; therefore, be it
| ||||||
| 13 | RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE | ||||||
| 14 | NINETY-FIFTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that no | ||||||
| 15 | changes be made to State Employees Deferred Compensation Plan | ||||||
| 16 | rules and operations until a consensus has been achieved by the | ||||||
| 17 | plan's employee participants and other participants in favor of | ||||||
| 18 | the change; and be it further
| ||||||
| 19 | RESOLVED, That no such changes be made, even if | ||||||
| 20 | satisfactory to Illinois deferred compensation plan | ||||||
| 21 | participants, until after the conclusion of the present period | ||||||
| |||||||
| |||||||
| 1 | of unusual market uncertainty; and be it further
| ||||||
| 2 | RESOLVED, That a copy of this resolution be presented to | ||||||
| 3 | the members of the Illinois State Board of Investments and to | ||||||
| 4 | the employee Director of the Board.
| ||||||