98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5507

 

Introduced , by Rep. Ron Sandack

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/7-195.1  from Ch. 108 1/2, par. 7-195.1
40 ILCS 5/7-210  from Ch. 108 1/2, par. 7-210
40 ILCS 5/7-214 rep.

    Amends the IMRF Article of the Illinois Pension Code. Provides that all money received by the board of trustees of the Fund shall be deposited with the Fund (instead of the State Treasurer). Provides that disbursements shall be made only upon proper authorization by the board. Repeals a provision that provides that the State Treasurer is the treasurer of the Fund. Removes provisions that require the State Comptroller to draw his or her warrant on the State Treasurer for deposits and disbursements. Effective July 1, 2014.


LRB098 17309 RPS 52403 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5507LRB098 17309 RPS 52403 b

1    AN ACT concerning pensions.
 
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 7-195.1 and 7-210 as follows:
 
6    (40 ILCS 5/7-195.1)  (from Ch. 108 1/2, par. 7-195.1)
7    Sec. 7-195.1. To establish and maintain a revolving
8account. To establish and maintain a revolving account in a
9bank or savings and loan association, approved by the State
10Treasurer as a State depositary and having capital funds,
11represented by capital, surplus, and undivided profits, of at
12least 5 million dollars, for the purpose of making payments of
13annuities, benefits, and administrative expenses and payments
14to the State Agency provided in Section 7-170. All funds
15deposited in such account shall be placed in the name of the
16fund and shall be withdrawn only by a check or draft upon the
17bank or savings and loan association signed by the president of
18the board or the executive director, as the board may direct.
19In case the president or executive director, whose signature
20appears upon any check or draft, after attaching his signature
21ceases to hold office before the delivery thereof to the payee,
22his signature nevertheless shall be valid and sufficient for
23all purposes with the same effect as if he had remained in

 

 

HB5507- 2 -LRB098 17309 RPS 52403 b

1office until delivery thereof. The revolving account shall be
2created by resolution of the board. The State Comptroller, upon
3receipt of a copy of such resolution and a voucher designating
4the payment of $300,000 into the revolving account, shall draw
5his warrant on the State Treasurer for payment of same to the
6Fund for deposit in the revolving account. The monies in the
7revolving account shall be held and expenditures shall be made
8by the Fund for the purposes herein set forth. The Fund shall
9reimburse the revolving account for expenditures for such
10purposes and the Comptroller, upon receipt of vouchers signed
11as provided in Section 7-210 and including a statement of
12expenditures made from the revolving account, shall draw his
13warrant on the State Treasurer for the payment of the amount of
14such expenditures to the Fund for deposit in the revolving
15account.
16    No bank or savings and loan association shall receive
17investment funds as permitted by this Section, unless it has
18complied with the requirements established pursuant to Section
196 of "An Act relating to certain investments of public funds by
20public agencies", approved July 23, 1943, as now or hereafter
21amended. The limitations set forth in such Section 6 shall be
22applicable only at the time of investment and shall not require
23the liquidation of any investment at any time.
24(Source: P.A. 83-541.)
 
25    (40 ILCS 5/7-210)  (from Ch. 108 1/2, par. 7-210)

 

 

HB5507- 3 -LRB098 17309 RPS 52403 b

1    Sec. 7-210. Funds.
2    (a) All money received by the board shall immediately be
3deposited in with the State Treasurer for the account of the
4fund, or in the case of funds received under Section 7-199.1,
5in a separate account maintained for that purpose. All
6disbursements of funds shall be held by the State Treasurer
7shall be made only upon warrants of the State Comptroller drawn
8upon the Treasurer as custodian of this fund upon vouchers
9signed by the person or persons designated for such purpose by
10resolution of the board. Disbursements shall be made The
11Comptroller is authorized to draw such warrants upon vouchers
12so signed, including warrants payable to the Fund for deposit
13in a revolving account authorized by Section 7-195.1. The
14Treasurer shall accept all warrants so signed and shall be
15released from liability for all payments made thereon. Vouchers
16shall be drawn only upon proper authorization by the board as
17properly recorded in the official minute books of the meetings
18of the board.
19    (b) (Blank). All securities of the fund when received shall
20be deposited with the State Treasurer who shall provide
21adequate safe deposit facilities for their preservation and
22have custody of them.
23    (c) The assets of the fund shall be invested as one fund,
24and no particular person, municipality, or instrumentality
25thereof or participating instrumentality shall have any right
26in any specific security or in any item of cash other than an

 

 

HB5507- 4 -LRB098 17309 RPS 52403 b

1undivided interest in the whole.
2    (d) Whenever any employees of a municipality or
3participating instrumentality have been or shall be excluded
4from participation in this fund by virtue of the application of
5paragraph b of Section 7-109 (2), the board shall direct that
6an amount equal to the accumulated contributions of such
7employees be transferred to issue a voucher authorizing the
8Comptroller to draw his warrant upon the Treasurer as custodian
9of this fund in an amount equal to the accumulated
10contributions of such employees. Such warrant shall be drawn in
11favor of the appropriate fund of the retirement fund in which
12such employees have or shall become participants. Such transfer
13shall terminate any further rights of such employees under this
14fund.
15    (e) If a participating instrumentality terminates
16participation because it fails to meet the requirements of
17Section 7-108, it shall pay to the fund the amount equal to any
18net debit balance in its municipality reserve account and
19account receivable. Its successors, and assigns and
20transferees of its assets shall be obligated to make this
21payment to the extent of the value of assets transferred to
22them. The fund shall pay an amount equal to any net credit
23balance to the participating instrumentality, its successors
24or assigns. Any remaining net debit or credit balance not
25collectible or payable shall be transferred to the terminated
26municipality reserve account. The fund shall pay to each

 

 

HB5507- 5 -LRB098 17309 RPS 52403 b

1employee of the participating instrumentality an amount equal
2to his credits in the employee reserves. The employees shall
3have no further rights to any benefits from the fund, except
4that annuities awarded prior to the date of termination shall
5continue to be paid.
6(Source: P.A. 84-812.)
 
7    (40 ILCS 5/7-214 rep.)
8    Section 10. The Illinois Pension Code is amended by
9repealing Section 7-214.
 
10    Section 99. Effective date. This Act takes effect July 1,
112014.