HB0871 96TH GENERAL ASSEMBLY

LRB096 08832 AMC 18966 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0871

Introduced 2/10/2009, by Rep. Jim Watson

SYNOPSIS AS INTRODUCED:

40 ILCS 5/1-111

from Ch. 108 1/2, par. 1-111

Amends the Illinois Pension Code. Provides that a retirement system or pension fund established under the Downstate Police or Downstate Firefighters Article may not acquire a security issued by an employer of employees covered by any retirement system or pension fund under those Articles, including itself, if immediately after such acquisition, the aggregate fair market value of all such employer securities held by the retirement system or pension fund exceeds 10% of the fair market value of the assets of the retirement system or pension fund. 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 changing Section 1-111 as follows:

(40 ILCS 5/1-111) (from Ch. 108 1/2, par. 1-111)

Sec. 1-111. Ten Per Cent Limitation of Employer Securities.

(a) Except as provided in subsection (b), a A plan may not acquire a security issued by an employer of employees covered by the retirement system or pension fund, if immediately after such acquisition, the aggregate fair market value of such employer securities held by the retirement system or pension fund exceed 10 per cent of the fair market value of the assets of the retirement system or pension fund.

(b) A retirement system or pension fund established under Article 3 or 4 may not acquire a security issued by an employer of employees covered by any retirement system or pension fund under Article 3 or 4, including itself, if immediately after such acquisition, the aggregate fair market value of all such employer securities held by the retirement system or pension fund exceeds 10% of the fair market value of the assets of the retirement system or pension fund.

(Source: P.A. 81-948.)

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