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Public Act 094-0471
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| SB0253 Enrolled |
LRB094 07452 AMC 37615 b |
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AN ACT concerning public employee benefits.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Pension Code is amended by changing |
Section 1-109.1 as follows:
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(40 ILCS 5/1-109.1) (from Ch. 108 1/2, par. 1-109.1)
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Sec. 1-109.1. Allocation and Delegation of Fiduciary |
Duties.
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(1) Subject to the provisions of Section 22A-113 of this |
Code and
subsections (2) and (3) of this Section, the board of |
trustees of a
retirement system or pension fund established |
under this Code may:
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(a) Appoint one or more investment managers as |
fiduciaries to manage
(including the power to acquire and |
dispose of) any assets of the
retirement system or pension |
fund; and
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(b) Allocate duties among themselves and designate |
others as fiduciaries
to carry out specific fiduciary |
activities other than the management of the
assets of the |
retirement system or pension fund.
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(2) The board of trustees of a pension fund established |
under Article 5, 6,
8, 9, 10, 11, 12 or 17 of this Code may not |
transfer its investment authority,
nor transfer the assets of |
the fund to any other person or entity for the
purpose of |
consolidating or merging its assets and management with any |
other
pension fund or public investment authority, unless the |
board resolution
authorizing such transfer is submitted for |
approval to the contributors and
pensioners of the fund at |
elections held not less than 30 days after the
adoption of such |
resolution by the board, and such resolution is approved by a
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majority of the votes cast on the question in both the |
contributors election
and the pensioners election. The |
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election procedures and qualifications
governing the election |
of trustees shall govern the submission of resolutions
for |
approval under this paragraph, insofar as they may be made |
applicable.
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(3) Pursuant to subsections (h) and (i) of Section 6 of |
Article VII of
the Illinois Constitution, the investment |
authority of boards of trustees
of retirement systems and |
pension funds established under this Code is declared
to be a |
subject of exclusive State jurisdiction, and the concurrent |
exercise
by a home rule unit of any power affecting such |
investment authority is
hereby specifically denied and |
preempted.
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(4) For the purposes of this Code, "emerging investment |
manager" means a
qualified investment adviser that manages an |
investment portfolio of at
least $10,000,000 but less than |
$2,000,000,000
$400,000,000 on January 1, 1993 and is a
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"minority owned business" or "female owned business" as those |
terms are
defined in the Business Enterprise for Minorities,
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Females, and Persons with Disabilities Act.
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It is hereby declared to be the public policy of the State |
of Illinois to
encourage the trustees of public employee |
retirement systems
to use emerging investment managers in |
managing their system's assets to the
greatest extent feasible |
within the bounds of financial and fiduciary
prudence, and to |
take affirmative steps to remove any barriers to the full
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participation of emerging investment managers in investment |
opportunities
afforded by those retirement systems.
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Each retirement system subject to this Code shall prepare a
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report to be submitted to the Governor and the General Assembly |
by
September 1 of each year. The report shall identify the |
emerging
investment managers used by the system, the percentage |
of the system's
assets under the investment control of emerging |
investment managers, and
the actions it has undertaken to |
increase the use of emerging investment
managers, including |
encouraging other investment managers to use emerging
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investment managers as subcontractors when the opportunity |