HB4891 96TH GENERAL ASSEMBLY

LRB096 16062 AMC 31310 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4891

Introduced 1/15/2010, 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.

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Section 24-105 as follows:

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

Sec. 24-105. The State Employees Deferred Compensation Plan shall be administered by the Department of Central Management Services subject to the general supervision of the Illinois State Board of Investment. Participation in such plan shall be by a specific written agreement between each such employee and the State which agreement shall provide for the deferral of such amount of compensation as requested by the employee. With each distribution of compensation to a participating employee, the employee shall receive a memorandum of the amount by which his gross compensation for the period involved is reduced by reason of the deferment of compensation, which amount shall not be included as a part of his gross compensation as to that period.

Funds retained by the State as deferred compensation pursuant to a written deferred compensation agreement between the State and participating employees, may be invested in such investments as are deemed acceptable by the Illinois State Board of Investment including, but not limited to, life insurance or annuity contracts or mutual funds. All such insurance, annuities, mutual funds, or other such investments utilized under this Plan shall have been reviewed and selected by the Board based on a competitive bidding process as established by such specifications and considerations as are deemed appropriate by the Board. 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 this amendatory Act of the 96th General Assembly or make any amendment to a contract entered into on or before the effective date of this amendatory Act of the 96th General Assembly, unless it is first reviewed and approved by the Commission on Government Forecasting and Accountability. Nothing in this Section should be construed as requiring a limitation on the number and variety of insurance, annuity or mutual fund contracts which may be selected as a result of this bidding process. The State Board of Investment may also invest any funds retained by the State pursuant to a written deferred compensation agreement between the State and participating employees in share accounts or share certificate accounts of State or federal credit unions, the accounts of which are insured as required by The Illinois Credit Union Act or the Federal Credit Union Act, as applicable. Any income and gain resulting from the investment of a deferred compensation account may be paid to the participant as additional compensation for continued service during the period of participation or be used in part for administrative expenses, all in accordance with the plan. Such investments and payments shall not be construed to be prohibited uses of the general assets of the State.

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

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