96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0157


 
Introduced 1/14/2009, by Rep. Raymond Poe
 
SYNOPSIS AS INTRODUCED:
 		














40 ILCS 5/24-105
  from Ch. 108 1/2, par. 24-105







    Amends the Illinois Pension Code. In provisions concerning the State Employees Deferred Compensation Plan, provides that the Illinois State Board of Investment may not (i) select any life insurance or annuity contract or mutual fund, or any other investment vehicle,  as an investment vehicle or (ii) enter into any contract after the effective date of the amendatory Act or make any amendment to a contract entered into on or before the effective date of the amendatory Act,   unless it is first reviewed and approved by the Commission on Government Forecasting and Accountability. Effective immediately.
















LRB096 04320 AMC 14366 b

















PENSION IMPACT NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB0157

LRB096 04320 AMC 14366 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 24-105 as follows:
 



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    (40 ILCS 5/24-105)  (from Ch. 108 1/2, par. 24-105)



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    Sec. 24-105. The State Employees Deferred Compensation 
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Plan shall be
administered by the Department of Central 
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Management Services
subject to the general
supervision of the 
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Illinois State Board of Investment. Participation in
such plan 
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shall be by a specific written agreement between each such

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employee and the State which agreement shall provide for the 
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deferral of
such amount of compensation as requested by the 
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employee. With each
distribution of compensation to a 
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participating employee, the employee
shall receive a 
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memorandum of the amount by which his gross compensation
for 
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the period involved is reduced by reason of the deferment of

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compensation, which amount shall not be included as a part of 
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his gross
compensation as to that period.

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    Funds retained by the State as deferred compensation 
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pursuant to a
written deferred compensation agreement between 
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the State and
participating employees, may be invested in such 
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investments as are
deemed acceptable by the Illinois State 
 


 






HB0157
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LRB096 04320 AMC 14366 b




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Board of Investment including,
but not limited to, life 
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insurance or annuity contracts or mutual funds.
All such 
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insurance, annuities, mutual funds, or other such investments

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utilized under this Plan shall have been reviewed and selected 
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by the
Board based on a competitive bidding process as 
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established by such
specifications and considerations as are 
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deemed appropriate by the
Board. The Illinois State Board of 
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Investment may not (i) select any life insurance or annuity 
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contract or mutual fund, or any other investment vehicle,  as an 
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investment vehicle or (ii) enter into any contract after the 
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effective date of this amendatory Act of the 96th General 
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Assembly or make any amendment to a contract entered into on or 
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before the effective date of this amendatory Act of the 96th 
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General Assembly,   unless it is first reviewed and approved by 
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the Commission on Government Forecasting and Accountability. 
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Nothing in this Section should be construed as requiring a

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limitation on the number and variety of insurance, annuity or 
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mutual
fund contracts which may be selected as a result of this 
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bidding
process.  The State Board of Investment may also invest 
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any funds retained
by the State pursuant to a written deferred 
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compensation agreement between
the State and participating 
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employees in share accounts or share certificate
accounts of 
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State or federal credit unions, the accounts of which are 
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insured
as required by The Illinois Credit Union Act or the 
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Federal Credit Union
Act, as applicable.  Any income and gain 
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resulting from the investment of
a deferred compensation 
 


 






HB0157
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LRB096 04320 AMC 14366 b




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account may be paid to the participant as additional

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compensation
for continued service during the period of 
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participation or be used in part
for administrative expenses, 
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all in accordance with the plan.  Such investments
and payments 
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shall not be construed to be prohibited uses of the general

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assets of the State.

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(Source: P.A. 82-789.)

 

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    Section 99. Effective date. This Act takes effect upon 
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becoming law.