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1 | AN ACT concerning finance.
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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 1-110 as follows:
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6 | (40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110)
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7 | Sec. 1-110. Prohibited Transactions.
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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
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12 | indirect:
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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.
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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
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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.
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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.
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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.
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10 | (b) A fiduciary with respect to a retirement system or | ||||||
11 | pension fund
established under this Code shall not:
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12 | (1) Deal with the assets of the retirement system or | ||||||
13 | pension fund in his
own interest or for his own account;
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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
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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.
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23 | (c) Nothing in this Section shall be construed to prohibit | ||||||
24 | any trustee from:
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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.
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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.
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5 | (3) Serving as a trustee in addition to being an | ||||||
6 | officer, employee, agent
or other representative of a party | ||||||
7 | in interest.
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8 | (Source: P.A. 88-535.)
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