Bill Text: IL SB3043 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Pension Code. Makes a technical change in a Section concerning prohibited transactions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-03-20 - Re-referred to Assignments [SB3043 Detail]

Download: Illinois-2023-SB3043-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3043 Introduced 2/2/2024, by Sen. Don Harmon 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.
LRB103 37344 RPS 67465 b
A BILL FOR
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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 1-110 as follows:
(40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110)
Sec. 1-110. Prohibited Transactions.
(a) A fiduciary with respect to a retirement system,
pension fund, or investment board shall not cause the the
retirement system or pension fund to engage in a transaction
if he or she knows or should know that such transaction
constitutes a direct or indirect:
(1) Sale or exchange, or leasing of any property from
the retirement system or pension fund to a party in
interest for less than adequate consideration, or from a
party in interest to a retirement system or pension fund
for more than adequate consideration.
(2) Lending of money or other extension of credit from
the retirement system or pension fund to a party in
interest without the receipt of adequate security and a
reasonable rate of interest, or from a party in interest
to a retirement system or pension fund with the provision
of excessive security or an unreasonably high rate of

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interest.
(3) Furnishing of goods, services or facilities from
the retirement system or pension fund to a party in
interest for less than adequate consideration, or from a
party in interest to a retirement system or pension fund
for more than adequate consideration.
(4) Transfer to, or use by or for the benefit of, a
party in interest of any assets of a retirement system or
pension fund for less than adequate consideration.
(b) A fiduciary with respect to a retirement system or
pension fund established under this Code shall not:
(1) Deal with the assets of the retirement system or
pension fund in his own interest or for his own account;
(2) In his individual or any other capacity act in any
transaction involving the retirement system or pension
fund on behalf of a party whose interests are adverse to
the interests of the retirement system or pension fund or
the interests of its participants or beneficiaries; or
(3) Receive any consideration for his own personal
account from any party dealing with the retirement system
or pension fund in connection with a transaction involving
the assets of the retirement system or pension fund.
(c) Nothing in this Section shall be construed to prohibit
any trustee from:
(1) Receiving any benefit to which he may be entitled
as a participant or beneficiary in the retirement system

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or pension fund.
(2) Receiving any reimbursement of expenses properly
and actually incurred in the performance of his duties
with the retirement system or pension fund.
(3) Serving as a trustee in addition to being an
officer, employee, agent or other representative of a
party in interest.
(d) A fiduciary of a pension fund established under
Article 3 or 4 shall not knowingly cause or advise the pension
fund to engage in an investment transaction when the fiduciary
(i) has any direct interest in the income, gains, or profits of
the investment adviser through which the investment
transaction is made or (ii) has a business relationship with
that investment adviser that would result in a pecuniary
benefit to the fiduciary as a result of the investment
transaction.
Violation of this subsection (d) is a Class 4 felony.
(e) A board member, employee, or consultant with respect
to a retirement system, pension fund, or investment board
subject to this Code, except those whose investments are
restricted by Section 1-113.2, shall not knowingly cause or
advise the retirement system, pension fund, or investment
board to engage in an investment transaction with an
investment adviser when the board member, employee,
consultant, or their spouse (i) has any direct interest in the
income, gains, or profits of the investment adviser through

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