HB5059 96TH GENERAL ASSEMBLY

LRB096 18175 AMC 33550 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB5059

Introduced 1/25/2010, by Rep. Kevin Joyce

SYNOPSIS AS INTRODUCED:

40 ILCS 5/1-110.16 new
30 ILCS 805/8.34 new

Amends the Illinois Pension Code. Provides that a retirement system or pension fund may not invest in any funds that trade derivatives in off markets or non-open markets, and if a retirement system or pension fund is investing in such a fund on the effective date, then the retirement system or pension fund must divest the retirement system's interest in the fund within one year after the effective date. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

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 adding Section 1-110.16 as follows:

(40 ILCS 5/1-110.16 new)

Sec. 1-110.16. Prohibited transactions; funds that trade derivatives in off markets or non-open markets. A retirement system or pension fund created under this Code may not invest in any funds that trade derivatives in off markets or non-open markets. If a retirement system or pension fund created under this Code is investing in such a fund on the effective date of this Section, then the retirement system or pension fund must divest the retirement system's interest in the fund within one year after the effective date of this Section.

Section 90. The State Mandates Act is amended by adding Section 8.34 as follows:

(30 ILCS 805/8.34 new)

Sec. 8.34. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 96th General Assembly.

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