95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1169

 

Introduced 2/8/2007, by Sen. Jacqueline Y. Collins

 

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

 

SB1169 LRB095 10981 AMC 31287 b

1     AN ACT concerning finance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 Section 1-110 as follows:
 
6     (40 ILCS 5/1-110)  (from Ch. 108 1/2, par. 1-110)
7     Sec. 1-110. Prohibited Transactions.
8     (a) A fiduciary with respect to a retirement system or
9 pension fund shall not cause the the retirement system or
10 pension fund to engage in a transaction if he or she knows or
11 should know that such transaction constitutes a direct or
12 indirect:
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.
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
22     a retirement system or pension fund with the provision of
23     excessive security or an unreasonably high rate of

 

 

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1     interest.
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.
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.
10     (b) A fiduciary with respect to a retirement system or
11 pension fund established under this Code shall not:
12         (1) Deal with the assets of the retirement system or
13     pension fund in his own interest or for his own account;
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
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.
23     (c) Nothing in this Section shall be construed to prohibit
24 any trustee from:
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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1     pension fund.
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.
5         (3) Serving as a trustee in addition to being an
6     officer, employee, agent or other representative of a party
7     in interest.
8 (Source: P.A. 88-535.)