Full Text of HB4547 103rd General Assembly
HB4547 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB4547 Introduced 1/31/2024, by Rep. Jay Hoffman SYNOPSIS AS INTRODUCED: | | 40 ILCS 5/1-110 | from Ch. 108 1/2, par. 1-110 |
| Amends the Illinois Pension Code. Makes a technical change in a Section concerning prohibited transactions. |
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| | A BILL FOR |
| | | | HB4547 | | LRB103 38105 RPS 68237 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 1-110 as follows: | 6 | | (40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110) | 7 | | Sec. 1-110. Prohibited Transactions. | 8 | | (a) A fiduciary with respect to a retirement system, | 9 | | pension fund, or investment board shall not cause the the | 10 | | retirement system or pension fund to engage in a transaction | 11 | | if he or she knows or should know that such transaction | 12 | | constitutes a direct or indirect: | 13 | | (1) Sale or exchange, or leasing of any property from | 14 | | the retirement system or pension fund to a party in | 15 | | interest for less than adequate consideration, or from a | 16 | | party in interest to a retirement system or pension fund | 17 | | for more than adequate consideration. | 18 | | (2) Lending of money or other extension of credit from | 19 | | the retirement system or pension fund to a party in | 20 | | interest without the receipt of adequate security and a | 21 | | reasonable rate of interest, or from a party in interest | 22 | | to a retirement system or pension fund with the provision | 23 | | of excessive security or an unreasonably high rate of |
| | | HB4547 | - 2 - | LRB103 38105 RPS 68237 b |
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| 1 | | interest. | 2 | | (3) Furnishing of goods, services or facilities from | 3 | | the retirement system or pension fund to a party in | 4 | | interest for less than adequate consideration, or from a | 5 | | party in interest to a retirement system or pension fund | 6 | | for more than adequate consideration. | 7 | | (4) Transfer to, or use by or for the benefit of, a | 8 | | party in interest of any assets of a retirement system or | 9 | | pension fund for less than adequate consideration. | 10 | | (b) A fiduciary with respect to a retirement system or | 11 | | pension fund established under this Code shall not: | 12 | | (1) Deal with the assets of the retirement system or | 13 | | pension fund in his own interest or for his own account; | 14 | | (2) In his individual or any other capacity act in any | 15 | | transaction involving the retirement system or pension | 16 | | fund on behalf of a party whose interests are adverse to | 17 | | the interests of the retirement system or pension fund or | 18 | | the interests of its participants or beneficiaries; or | 19 | | (3) Receive any consideration for his own personal | 20 | | account from any party dealing with the retirement system | 21 | | or pension fund in connection with a transaction involving | 22 | | the assets of the retirement system or pension fund. | 23 | | (c) Nothing in this Section shall be construed to prohibit | 24 | | any trustee from: | 25 | | (1) Receiving any benefit to which he may be entitled | 26 | | as a participant or beneficiary in the retirement system |
| | | HB4547 | - 3 - | LRB103 38105 RPS 68237 b |
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| 1 | | or pension fund. | 2 | | (2) Receiving any reimbursement of expenses properly | 3 | | and actually incurred in the performance of his duties | 4 | | with the retirement system or pension fund. | 5 | | (3) Serving as a trustee in addition to being an | 6 | | officer, employee, agent or other representative of a | 7 | | party in interest. | 8 | | (d) A fiduciary of a pension fund established under | 9 | | Article 3 or 4 shall not knowingly cause or advise the pension | 10 | | fund to engage in an investment transaction when the fiduciary | 11 | | (i) has any direct interest in the income, gains, or profits of | 12 | | the investment adviser through which the investment | 13 | | transaction is made or (ii) has a business relationship with | 14 | | that investment adviser that would result in a pecuniary | 15 | | benefit to the fiduciary as a result of the investment | 16 | | transaction. | 17 | | Violation of this subsection (d) is a Class 4 felony. | 18 | | (e) A board member, employee, or consultant with respect | 19 | | to a retirement system, pension fund, or investment board | 20 | | subject to this Code, except those whose investments are | 21 | | restricted by Section 1-113.2, shall not knowingly cause or | 22 | | advise the retirement system, pension fund, or investment | 23 | | board to engage in an investment transaction with an | 24 | | investment adviser when the board member, employee, | 25 | | consultant, or their spouse (i) has any direct interest in the | 26 | | income, gains, or profits of the investment adviser through |
| | | HB4547 | - 4 - | LRB103 38105 RPS 68237 b |
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| 1 | | which the investment transaction is made or (ii) has a | 2 | | relationship with that investment adviser that would result in | 3 | | a pecuniary benefit to the board member, employee, or | 4 | | consultant or spouse of such board member, employee, or | 5 | | consultant as a result of the investment transaction. For | 6 | | purposes of this subsection (e), a consultant includes an | 7 | | employee or agent of a consulting firm who has greater than | 8 | | 7.5% ownership of the consulting firm. | 9 | | Violation of this subsection (e) is a Class 4 felony. | 10 | | (Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.) |
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