Full Text of SB3071 99th General Assembly
SB3071enr 99TH GENERAL ASSEMBLY |
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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 changing | 5 | | Sections 22A-109, 22A-111, 22A-113.1, 22A-113.2, and 22A-113.3 | 6 | | as follows:
| 7 | | (40 ILCS 5/22A-109) (from Ch. 108 1/2, par. 22A-109)
| 8 | | Sec. 22A-109. Membership of board. The board shall consist | 9 | | of the following
members: | 10 | | (1) Five trustees appointed by the Governor with the | 11 | | advice and consent of the Senate who may not hold an | 12 | | elective State office. | 13 | | (2) The Treasurer. | 14 | | (3) The Comptroller, who shall represent the State | 15 | | Employees' Retirement System of Illinois. | 16 | | (4) The Chairperson of the General Assembly Retirement | 17 | | System. | 18 | | (5) The Chairperson of the Judges Retirement System of | 19 | | Illinois. | 20 | | The appointive
members shall serve for terms of 4 years except | 21 | | that the terms of office of the
original appointive members | 22 | | pursuant to this amendatory Act of the 96th General Assembly | 23 | | shall be as follows: One member for a term of 1
year; 1 member |
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| 1 | | for a term of 2 years; 1 member for a term of 3 years; and 2 | 2 | | members for a term of 4 years. Vacancies among the appointive
| 3 | | members shall be filled for unexpired terms by appointment in
| 4 | | like manner as for original appointments, and appointive | 5 | | members shall
continue in office until their successors have | 6 | | been appointed and have
qualified.
| 7 | | Notwithstanding any provision of this Section to the | 8 | | contrary, the term of office of each trustee of the Board | 9 | | appointed by the Governor who is sitting on the Board on the | 10 | | effective date of this amendatory Act of the 96th General | 11 | | Assembly is terminated on that effective date. A trustee | 12 | | sitting on the board on the effective date of this amendatory | 13 | | Act of the 96th General Assembly may not hold over in office | 14 | | for more than 60 days after the effective date of this | 15 | | amendatory Act of the 96th General Assembly. Nothing in this | 16 | | Section shall prevent the Governor from making a temporary | 17 | | appointment or nominating a trustee holding office on the day | 18 | | before the effective date of this amendatory Act of the 96th | 19 | | General Assembly. | 20 | | Each person appointed to membership shall qualify by taking | 21 | | an oath of
office before the Secretary of State stating that he | 22 | | will diligently and
honestly administer the affairs of the | 23 | | board and will not violate or knowingly
permit the violation of | 24 | | any provisions of this Article.
| 25 | | Members of the board shall receive no salary for service on | 26 | | the board but
shall be reimbursed for travel expenses incurred |
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| 1 | | while on business for the
board according to the standards in | 2 | | effect for members of the Illinois
Legislative Research Unit.
| 3 | | A majority of the members of the board shall constitute a | 4 | | quorum. The
board shall elect from its membership, biennially, | 5 | | a Chairman, Vice Chairman
and a Recording Secretary. These | 6 | | officers, together with one other member
elected by the board, | 7 | | shall constitute the executive committee. During the
interim | 8 | | between regular meetings of the board, the executive committee | 9 | | shall
have authority to conduct all business of the board and | 10 | | shall report such
business conducted at the next following | 11 | | meeting of the board for ratification.
| 12 | | No member of the board shall have any interest in any | 13 | | brokerage fee,
commission or other profit or gain arising out | 14 | | of any investment made by
the board. This paragraph does not | 15 | | preclude ownership by any member of any
minority interest in | 16 | | any common stock or any corporate obligation in which
| 17 | | investment is made by the board.
| 18 | | The board shall contract for a blanket fidelity bond in the | 19 | | penal sum of
not less than $1,000,000.00 to cover members of | 20 | | the board, the director and
all other employees of the board | 21 | | conditioned for the faithful performance of
the duties of their | 22 | | respective offices, the premium on which shall be paid by
the | 23 | | board. The bond shall be filed with the State Treasurer for | 24 | | safekeeping.
| 25 | | (Source: P.A. 96-6, eff. 4-3-09.)
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| 1 | | (40 ILCS 5/22A-111) (from Ch. 108 1/2, par. 22A-111)
| 2 | | Sec. 22A-111.
The Board shall manage the investments of any | 3 | | pension
fund, retirement system, or education fund for the | 4 | | purpose
of obtaining a total return on
investments for the long | 5 | | term. It also shall perform such other functions as
may be | 6 | | assigned or directed by the General Assembly.
| 7 | | The authority of the board to manage pension fund | 8 | | investments and the
liability shall begin when there has been a | 9 | | physical transfer of the pension
fund investments to the board | 10 | | and placed in the custody of the board's custodian State | 11 | | Treasurer .
| 12 | | The authority of the board to manage monies from the | 13 | | education fund for
investment and the liability of the board | 14 | | shall begin when there has been a
physical transfer of | 15 | | education fund investments to the board and placed in
the | 16 | | custody of the board's custodian State Treasurer .
| 17 | | The board may not delegate its management functions, but it | 18 | | may, but is not required to, arrange
to compensate for | 19 | | personalized investment advisory service
for any or all | 20 | | investments under its control with any national or state bank
| 21 | | or trust company authorized to do a trust business and | 22 | | domiciled in Illinois,
other financial institution organized | 23 | | under the laws of Illinois, or an
investment advisor who is | 24 | | qualified under Federal Investment Advisors Act of 1940
and is | 25 | | registered under the Illinois Securities Law of 1953. Nothing | 26 | | contained
herein shall prevent the Board from subscribing to |
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| 1 | | general investment research
services available for purchase or | 2 | | use by others. The Board shall also have
the authority to | 3 | | compensate for accounting services.
| 4 | | This Section shall not be construed to prohibit the | 5 | | Illinois State Board of Investment from directly investing | 6 | | pension assets in public market investments, private | 7 | | investments, real estate investments, or other investments | 8 | | authorized by this Code. | 9 | | (Source: P.A. 96-1554, eff. 3-18-11.)
| 10 | | (40 ILCS 5/22A-113.1) (from Ch. 108 1/2, par. 22A-113.1)
| 11 | | Sec. 22A-113.1. Investable funds.
| 12 | | Each retirement system under the management of the Illinois | 13 | | State Board
of Investment shall report to the board from time | 14 | | to time the amounts of
funds available for investment. These | 15 | | amounts shall be transferred
immediately to the board's | 16 | | custodian or the custodian's State Treasurer or his authorized | 17 | | agent for the account
of the board to be applied for investment | 18 | | by the board. Notice to the
Illinois State Board of Investment | 19 | | of each such transfer shall be given by
the retirement system | 20 | | as the transfer occurs.
| 21 | | (Source: P.A. 78-646.)
| 22 | | (40 ILCS 5/22A-113.2) (from Ch. 108 1/2, par. 22A-113.2)
| 23 | | Sec. 22A-113.2. Custodian State Treasurer .
| 24 | | The securities, funds and other assets transferred to the |
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| 1 | | The Illinois State
Board of Investment or otherwise acquired by | 2 | | the board shall be placed in
the custody of the board's | 3 | | custodian. The custodian shall State Treasurer who shall serve | 4 | | as official custodian of
the board, provide adequate safe | 5 | | deposit facilities therefor and hold all
such securities, funds | 6 | | and other assets subject to the order of the board.
| 7 | | As soon as may be practicable, but in no event later than | 8 | | December 31, 2016, the board shall appoint and retain a | 9 | | qualified custodian. Until a custodian has been appointed by | 10 | | the board, the State Treasurer shall serve as official | 11 | | custodian of
the board. | 12 | | The custodian State Treasurer shall furnish a corporate | 13 | | surety bond of such amount
as the board designates, which bond | 14 | | shall indemnify the board against any
loss that may result from | 15 | | any action or failure to act by the custodian Treasurer or
any | 16 | | of the custodian's his agents. All charges incidental to the | 17 | | procuring and giving of
such bond shall be paid by the board. | 18 | | The bond shall be in the custody of
the board.
| 19 | | (Source: P.A. 77-611.)
| 20 | | (40 ILCS 5/22A-113.3) (from Ch. 108 1/2, par. 22A-113.3)
| 21 | | Sec. 22A-113.3. Investable funds of education foundation. | 22 | | The
Illinois Bank Examiners'
Education Foundation shall report | 23 | | to the board from time to time the
amounts of monies available | 24 | | for investment by the board. These amounts shall be
transferred | 25 | | promptly to the board's custodian or the custodian's State |
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| 1 | | Treasurer or his authorized agent for the
account of the board | 2 | | to be applied for investment by the board. Notice to
the board | 3 | | of each such transfer shall be given by the Illinois Bank
| 4 | | Examiners' Education Foundation after the transfer occurs.
| 5 | | (Source: P.A. 84-1127.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law. |
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