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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 5. The Illinois Pension Code is amended by changing | ||||||
| 5 | Section 1-107 as follows:
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| 6 | (40 ILCS 5/1-107) (from Ch. 108 1/2, par. 1-107)
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| 7 | Sec. 1-107. Indemnification of trustees, consultants and | ||||||
| 8 | employees of
retirement systems and pension funds. | ||||||
| 9 | (a) Every retirement system, pension fund, or other system | ||||||
| 10 | or fund established under this Code, other than a retirement | ||||||
| 11 | system established under Article 2, 14, 15, 16, or 18 of this | ||||||
| 12 | Code or the investment board established under Article 22A of | ||||||
| 13 | this Code, must indemnify and protect the trustees against all | ||||||
| 14 | damage claims and suits, including defense thereof, when | ||||||
| 15 | damages are sought for negligent or wrongful acts alleged to | ||||||
| 16 | have been committed in the scope of their powers and duties as | ||||||
| 17 | trustees. | ||||||
| 18 | Every retirement system established under Article 2, 14, | ||||||
| 19 | 15, 16, or 18 of this Code may indemnify and protect the | ||||||
| 20 | trustees against all damage claims and suits, including defense | ||||||
| 21 | thereof, when damages are sought for negligent or wrongful acts | ||||||
| 22 | alleged to have been committed in the scope of their powers and | ||||||
| 23 | duties as trustees. | ||||||
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| 1 | The investment board established under Article 22A of this | ||||||
| 2 | Code may indemnify and protect its members against all damage | ||||||
| 3 | claims and suits, including defense thereof, when damages are | ||||||
| 4 | sought for negligent or wrongful acts alleged to have been | ||||||
| 5 | committed in the scope of their powers and duties as members. | ||||||
| 6 | Notwithstanding any other provision of this subsection | ||||||
| 7 | (a), trustees and board members shall not be indemnified for | ||||||
| 8 | willful misconduct and gross negligence. | ||||||
| 9 | (b) Except as provided in subsection (a), every Every | ||||||
| 10 | retirement system, pension
fund or other system or fund | ||||||
| 11 | established under this Code may indemnify and
protect the | ||||||
| 12 | trustees, staff and consultants against all damage claims
and | ||||||
| 13 | suits, including defense thereof, when damages are sought for | ||||||
| 14 | negligent
or wrongful acts alleged to have been committed in | ||||||
| 15 | the scope of employment
or under the direction of the trustees. | ||||||
| 16 | However, the trustees, staff and
consultants shall not be | ||||||
| 17 | indemnified for willful wilful misconduct and gross | ||||||
| 18 | negligence.
Each board is authorized to insure against loss or | ||||||
| 19 | liability of the trustees,
staff and consultants which may | ||||||
| 20 | result from these damage claims. This insurance
shall be | ||||||
| 21 | carried in a company which is licensed to write such coverage | ||||||
| 22 | in this State.
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| 23 | (Source: P.A. 80-1364.)
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| 24 | Section 90. The State Mandates Act is amended by adding | ||||||
| 25 | Section 8.35 as follows: | ||||||
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| 1 | (30 ILCS 805/8.35 new) | ||||||
| 2 | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||
| 3 | of this Act, no reimbursement by the State is required for the | ||||||
| 4 | implementation of any mandate created by this amendatory Act of | ||||||
| 5 | the 97th General Assembly.
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| 6 | Section 99. Effective date. This Act takes effect upon | ||||||
| 7 | becoming law.
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