98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB4742

 

Introduced , by Rep. Donald L. Moffitt

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-109.3
40 ILCS 5/1-113.18

    Amends the General Provisions Article of the Illinois Pension Code. Requires the trustees of downstate police and firefighter pension funds to complete the 32-hour initial ethics training in 2 years (rather than 1 year) and the 16-hour continuing ethics training every 2 years thereafter (rather than every year thereafter). Requires 8 hours of the 32-hour initial ethics training to be completed in the first year and to include training in trustee ethics and fiduciary duties and liabilities. After completion of the initial ethics training, requires 4 hours of continuing training in trustee ethics and fiduciary duties and liabilities each year. Requires specified portions of the continuing ethics training to be done in a classroom or comparable online setting. Authorizes the balance of the continuing ethics training to be earned through participation in board hearings or training opportunities associated with other organizations or employment that are applicable to the duties of a pension fund trustee. Authorizes the training required of trustees of downstate police and firefighter pension funds to be applied toward the 8-hour continuing ethics training requirement that applies to all trustees of pension and retirement systems in the State.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4742LRB098 16364 RPM 51427 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 1-109.3 and 1-113.18 as follows:
 
6    (40 ILCS 5/1-109.3)
7    Sec. 1-109.3. Training requirement for pension trustees.
8    (a) All elected and appointed trustees under Article 3 and
94 of this Code must participate in a mandatory trustee
10certification training seminar that consists of at least 32
11hours of initial trustee certification at a training facility
12that is accredited and affiliated with a State of Illinois
13certified college or university. This training must include
14without limitation all of the following:
15        (1) Duties and liabilities of a fiduciary under Article
16    1 of the Illinois Pension Code.
17        (2) Adjudication of pension claims.
18        (3) Basic accounting and actuarial training.
19        (4) Trustee ethics.
20        (5) The Illinois Open Meetings Act.
21        (6) The Illinois Freedom of Information Act.
22    The training required under this subsection (a) must be
23completed within the first 2 years after the year that a

 

 

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1trustee takes office is elected or appointed under an Article 3
2or 4 pension fund. At least 8 hours of training during the
3first year of training must cover trustee ethics and the
4fiduciary duties and liabilities of pension trustees. The
5elected and appointed trustees of an Article 3 or 4 pension
6fund who are police officers (as defined in Section 3-106 of
7this Code) or firefighters (as defined in Section 4-106 of this
8Code) or are employed by the municipality shall be permitted
9time away from their duties to attend such training without
10reduction of accrued leave or benefit time. Active or appointed
11trustees serving on August 13, 2009 (the effective date of
12Public Act 96-429) this amendatory Act of the 96th General
13Assembly shall not be required to attend the training required
14under this subsection (a).
15    (b) Upon completion of, and in In addition to, the initial
16trustee certification training required under subsection (a),
17all elected and appointed trustees under Article 3 and 4 of
18this Code, including trustees serving on August 13, 2009 (the
19effective date of Public Act 96-429) this amendatory Act of the
2096th General Assembly, shall also complete at least an
21additional participate in a minimum of 16 hours of continuing
22trustee education during (i) the 2 years following the date by
23which the training required under subsection (a) must be
24completed and (ii) every 2 years thereafter. At least 4 hours
25of training during each of those years shall be devoted to
26trustee ethics and the fiduciary duties and liabilities of

 

 

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1pension trustees. At least 8 hours of the biennial training
2required under this subsection (b) must be in the form of a
3live lecture or classroom training forum or, if taken online,
4must be in an interactive form with ascertainable verification
5of participation and learning by the trustee in the online
6training program. The balance of biennial trustee training
7required under this subsection (b) may take the form of
8participation in other training opportunities incident to the
9functioning of the pension board, such as participation in
10board hearings on the award of disability or other benefits or
11training opportunities associated with other organizations or
12employment that are applicable to the duties of a pension fund
13trustee each year after the first year that the trustee is
14elected or appointed.
15    (c) The training required under this Section shall be paid
16for by the pension fund.
17    (d) Any board member who does not timely complete the
18training required under this Section is not eligible to serve
19on the board of trustees of an Article 3 or 4 pension fund,
20unless the board member completes the missed training within 6
21months after the date the member failed to complete the
22required training. In the event of a board member's failure to
23complete the required training, a successor shall be appointed
24or elected, as applicable, for the unexpired term. A successor
25who is elected under such circumstances must be elected at a
26special election called by the board and conducted in the same

 

 

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1manner as a regular election under Article 3 or 4, as
2applicable.
3(Source: P.A. 96-429, eff. 8-13-09.)
 
4    (40 ILCS 5/1-113.18)
5    Sec. 1-113.18. Ethics training. All board members of a
6retirement system, pension fund, or investment board created
7under this Code must attend ethics training of at least 8 hours
8per year. The training required under this Section shall
9include training on ethics, fiduciary duty, and investment
10issues and any other curriculum that the board of the
11retirement system, pension fund, or investment board
12establishes as being important for the administration of the
13retirement system, pension fund, or investment board. The
14Supreme Court of Illinois shall be responsible for ethics
15training and curriculum for judges designated by the Court to
16serve as members of a retirement system, pension fund, or
17investment board. Each board shall annually certify its
18members' compliance with this Section and submit an annual
19certification to the Division of Insurance of the Department of
20Financial and Professional Regulation. Judges shall annually
21certify compliance with the ethics training requirement and
22shall submit an annual certification to the Chief Justice of
23the Supreme Court of Illinois. Fulfillment of the requirements
24of Section 1-109.3 by elected and appointed trustees under
25Articles 3 and 4 of this Code constitutes compliance with the

 

 

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1requirements of this Section.
2(Source: P.A. 96-6, eff. 4-3-09.)