Full Text of SB3211 102nd General Assembly
SB3211 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB3211 Introduced 1/14/2022, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: |
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Amends the Police Officers' Pension Investment Fund Article of the Illinois Pension Code. Provides that the transition period shall end no later than June 30, 2023 (instead of 30 months after January 1, 2020). Effective immediately.
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| | A BILL FOR |
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| | | SB3211 | | LRB102 22289 RPS 31422 b |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 22B-120 as follows: | 6 | | (40 ILCS 5/22B-120) | 7 | | Sec. 22B-120. Transition period; transfer of securities, | 8 | | assets, and investment functions. | 9 | | (a) The transition period shall commence on January 1, | 10 | | 2020 ( the effective date of Public Act 101-610) this | 11 | | amendatory Act of the 101st General Assembly and shall end as | 12 | | determined by the board, consistent with and in the | 13 | | application of its fiduciary responsibilities, but in no event | 14 | | later than June 30, 2023 30 months thereafter . | 15 | | (b) The board may retain the services of custodians, | 16 | | investment consultants, and other professional services it | 17 | | deems prudent to implement the transition of assets described | 18 | | in this Section. The permanent board of trustees shall not be | 19 | | bound by any contract or agreement regarding such custodians, | 20 | | investment consultants, or other professional services entered | 21 | | into by the transition board of trustees. | 22 | | (c) As soon as practicable after January 1, 2020 ( the | 23 | | effective date of Public Act 101-610) this amendatory Act of |
| | | SB3211 | - 2 - | LRB102 22289 RPS 31422 b |
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| 1 | | the 101st General Assembly , the board, in cooperation with the | 2 | | Department of Insurance, shall audit the investment assets of | 3 | | each transferor pension fund to determine a certified | 4 | | investment asset list for each transferor pension fund. The | 5 | | audit shall be performed by a certified public accountant | 6 | | engaged by the board, and the board shall be responsible for | 7 | | payment of the costs and expenses associated with the audit. | 8 | | Upon completion of the audit for any transferor pension fund, | 9 | | the board and the Department of Insurance shall provide the | 10 | | certified investment asset list to that transferor pension | 11 | | fund. Upon determination of the certified investment asset | 12 | | list for any transferor pension fund, the board shall, within | 13 | | 10 business days or as soon thereafter as may be practicable as | 14 | | determined by the board, initiate the transfer of assets from | 15 | | that transferor pension fund. Further and to maintain accuracy | 16 | | of the certified investment asset list, upon determination of | 17 | | the certified investment asset list for a transferor pension | 18 | | fund, that fund shall not purchase or sell any of its pension | 19 | | fund assets. | 20 | | (d) When the Fund is prepared to receive pension fund | 21 | | assets from any transferor pension fund, the executive | 22 | | director shall notify in writing the board of trustees of that | 23 | | transferor pension fund of the Fund's intent to assume | 24 | | fiduciary control of those pension fund assets, and the date | 25 | | at which it will assume such control and that the transferor | 26 | | pension fund will cease to exercise fiduciary responsibility. |
| | | SB3211 | - 3 - | LRB102 22289 RPS 31422 b |
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| 1 | | This letter shall be transmitted no less than 30 days prior to | 2 | | the transfer date. A copy of the letter shall be transmitted to | 3 | | the Department of Insurance. Upon receipt of the letter, the | 4 | | transferor pension fund shall promptly notify its custodian, | 5 | | as well as any and all entities with fiduciary control of any | 6 | | portion of the pension assets. Each transferor pension fund | 7 | | shall have sole fiduciary and statutory responsibility for the | 8 | | management of its pension assets until the start of business | 9 | | on the transfer date. At the start of business on the transfer | 10 | | date, statutory and fiduciary responsibility for the | 11 | | investment of pension fund assets shall shift exclusively to | 12 | | the Fund and the Fund shall promptly and prudently transfer | 13 | | all such pension fund assets to the board and terminate the | 14 | | relationship with the local custodian of that transferor | 15 | | pension fund. The Fund shall provide a receipt for the | 16 | | transfer to the transferor pension fund within 30 days of the | 17 | | transfer date. | 18 | | As used in this subsection, "transfer date" means the date | 19 | | at which the Fund will assume fiduciary control of the | 20 | | transferor pension fund's assets and the transferor pension | 21 | | fund will cease to exercise fiduciary responsibility. | 22 | | (e) Within 90 days after the end of the transition period | 23 | | or as soon thereafter as may be practicable as determined by | 24 | | the board, the Fund and the Department of Insurance shall | 25 | | cooperate in transferring to the Fund all pension fund assets | 26 | | remaining in the custody of the transferor pension funds. |
| | | SB3211 | - 4 - | LRB102 22289 RPS 31422 b |
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| 1 | | (f) The board shall adopt such rules as in its judgment are | 2 | | desirable to implement the transition process, including, | 3 | | without limitation, the transfer of the pension fund assets of | 4 | | the transferor pension funds, the assumption of fiduciary | 5 | | control of such assets by the Fund, and the termination of | 6 | | relationships with local custodians. The adoption and | 7 | | effectiveness of such rules and regulations shall not be | 8 | | subject to Article 5 of the Illinois Administrative Procedure | 9 | | Act. | 10 | | (g) Within 6 months after the end of the transition period | 11 | | or as soon thereafter as may be practicable as determined by | 12 | | the board, the books, records, accounts, and securities of the | 13 | | Fund shall be audited by a certified public accountant | 14 | | selected by the board. This audit shall include, but not be | 15 | | limited to, the following: (1) a full description of the | 16 | | investments acquired, showing average costs; (2) a full | 17 | | description of the securities sold or exchanged, showing | 18 | | average proceeds or other conditions of an exchange; (3) gains | 19 | | or losses realized during the period; (4) income from | 20 | | investments; and (5) administrative expenses incurred by the | 21 | | board. This audit report shall be published on the Fund's | 22 | | official website and filed with the Department of Insurance. | 23 | | (h) To provide funds for payment of the ordinary and | 24 | | regular costs associated with the implementation of this | 25 | | transition process, the Illinois Finance Authority is | 26 | | authorized to loan to the Fund up to $7,500,000 of any of the |
| | | SB3211 | - 5 - | LRB102 22289 RPS 31422 b |
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| 1 | | Authority's funds, including, but not limited to, funds in its | 2 | | Illinois Housing Partnership Program Fund, its Industrial | 3 | | Project Insurance Fund, or its Illinois Venture Investment | 4 | | Fund, for such purpose. Such loan shall be repaid by the Fund | 5 | | with an interest rate tied to the Federal Funds Rate or an | 6 | | equivalent market established variable rate. The Fund and the | 7 | | Illinois Finance Authority shall enter into a loan or similar | 8 | | agreement that specifies the period of the loan, the payment | 9 | | interval, procedures for making periodic loans, the variable | 10 | | rate methodology to which the interest rate for loans should | 11 | | be tied, the funds of the Illinois Finance Authority that will | 12 | | be used to provide the loan, and such other terms that the Fund | 13 | | and the Illinois Finance Authority reasonably believe to be | 14 | | mutually beneficial. Such agreement shall be a public record | 15 | | and the Fund shall post the terms of the agreement on its | 16 | | official website.
| 17 | | (Source: P.A. 101-610, eff. 1-1-20.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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