Bill Text: IL HB5013 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the Illinois Pension Code. Creates the Downstate Police Pension Investment Board and the Downstate Firefighter Pension Investment Board. Moves the investment authority of downstate police and firefighter pension funds to those Investment Boards. Includes provisions relating to the transfer and investment of the affected assets, auditing and reporting requirements, and the operation and administration of the Investment Boards. Reduces the amount of training required for trustees of those pension funds. Changes all downstate police and firefighter pension funds to a fiscal year beginning May 1. Doubles the annual compliance fee paid by the funds to the Department of Insurance. Requires the Department of Insurance to impose penalties of up to $2,000 per day for noncompliance with certain provisions relating to the transfer of investment assets. Makes conforming and other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB5013 Detail]
Download: Illinois-2017-HB5013-Introduced.html
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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||
5 | Sections 1-109.3, 1-113.1, 1-113.2, 1-113.3, 1-113.4, | ||||||||||||||||||||||||
6 | 1-113.4a, 1-113.5, 1-113.6, 1-113.7, 1A-112, 1A-113, 3-125, | ||||||||||||||||||||||||
7 | 3-127, 3-132, 3-135, 4-118, 4-120, 4-123, and 4-128 and by | ||||||||||||||||||||||||
8 | adding Sections 1-101.6, 1-101.7, 1-113.05, 1-136, 3-135.1, | ||||||||||||||||||||||||
9 | 3-135.2, 4-128.1, and 4-128.2 and Articles 22B and 22C follows:
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10 | (40 ILCS 5/1-101.6 new) | ||||||||||||||||||||||||
11 | Sec. 1-101.6. Eligible pension fund. "Eligible pension | ||||||||||||||||||||||||
12 | fund" means a pension fund established pursuant to Article 3 or | ||||||||||||||||||||||||
13 | Article 4 of this Code that has net assets in trust that exceed | ||||||||||||||||||||||||
14 | the threshold amount defined in Section 1-101.7 of this Code. | ||||||||||||||||||||||||
15 | The status of "eligible pension fund", once established, | ||||||||||||||||||||||||
16 | continues in effect without regard to subsequent variations in | ||||||||||||||||||||||||
17 | the net assets of the pension fund.
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18 | (40 ILCS 5/1-101.7 new) | ||||||||||||||||||||||||
19 | Sec. 1-101.7. Threshold amount. "Threshold amount", when | ||||||||||||||||||||||||
20 | used in relation to the financial assets of a pension fund | ||||||||||||||||||||||||
21 | established under Article 3 or Article 4 of this Code, means an | ||||||||||||||||||||||||
22 | amount equal to 3 months of current liabilities of the pension |
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1 | fund, including benefit payments owed to annuitants and | ||||||
2 | beneficiaries of the pension fund and reasonable operational | ||||||
3 | expenses.
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4 | (40 ILCS 5/1-109.3) | ||||||
5 | Sec. 1-109.3. Training requirement for Article 3 and | ||||||
6 | Article 4 pension trustees. | ||||||
7 | (a) All elected and appointed trustees under Article 3 and | ||||||
8 | 4 of this Code must participate in a mandatory trustee | ||||||
9 | certification training seminar that consists of at least 8 32 | ||||||
10 | hours of initial trustee certification at a training seminar | ||||||
11 | facility that is accredited and affiliated with a State of | ||||||
12 | Illinois certified college or university or approved by the | ||||||
13 | Department of Insurance . This training must include , without | ||||||
14 | limitation , both all of the following: | ||||||
15 | (1) Duties and liabilities of a fiduciary under this | ||||||
16 | Article 1 of the Illinois Pension Code . | ||||||
17 | (2) Duties of a pension board trustee under Article 3 | ||||||
18 | or Article 4, as applicable, of this Code. Adjudication of | ||||||
19 | pension claims. | ||||||
20 | (3) Basic accounting and actuarial training. | ||||||
21 | (4) Trustee ethics. | ||||||
22 | (5) The Illinois Open Meetings Act. | ||||||
23 | (6) The Illinois Freedom of Information Act. | ||||||
24 | The training required under this subsection (a) must be | ||||||
25 | completed within the first year that a trustee is elected or |
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1 | appointed under an Article 3 or 4 pension fund. The elected and | ||||||
2 | appointed trustees of an Article 3 or 4 pension fund who are | ||||||
3 | police officers (as defined in Section 3-106 of this Code) or | ||||||
4 | firefighters (as defined in Section 4-106 of this Code) or are | ||||||
5 | employed by the municipality shall be permitted time away from | ||||||
6 | their duties to attend such training without reduction of | ||||||
7 | accrued leave or benefit time. Active or appointed trustees | ||||||
8 | serving on the effective date of this amendatory Act of the | ||||||
9 | 96th General Assembly shall not be required to attend the | ||||||
10 | training required under this subsection (a). | ||||||
11 | (b) In addition to the initial trustee certification | ||||||
12 | training required under subsection (a), all elected and | ||||||
13 | appointed trustees under Article 3 and 4 of this Code, | ||||||
14 | including trustees serving on the effective date of this | ||||||
15 | amendatory Act of the 100th General Assembly this amendatory | ||||||
16 | Act of the 96th General Assembly , shall also participate in a | ||||||
17 | minimum of 4 16 hours of continuing trustee education each year | ||||||
18 | after the first year that the trustee is elected or appointed. | ||||||
19 | The continuing trustee education training must include, | ||||||
20 | without limitation, both of the following: | ||||||
21 | (1) Duties and liabilities of a fiduciary under this | ||||||
22 | Article. | ||||||
23 | (2) Duties of a pension board trustee under Article 3 | ||||||
24 | or Article 4, as applicable, of this Code. | ||||||
25 | (c) The training required under this Section shall be paid | ||||||
26 | for by the pension fund. |
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1 | (d) Any board member who does not timely complete the | ||||||
2 | training required under this Section is not eligible to serve | ||||||
3 | on the board of trustees of an Article 3 or 4 pension fund, | ||||||
4 | unless the board member completes the missed training within 6 | ||||||
5 | months after the date the member failed to complete the | ||||||
6 | required training. In the event of a board member's failure to | ||||||
7 | complete the required training, a successor shall be appointed | ||||||
8 | or elected, as applicable, for the unexpired term. A successor | ||||||
9 | who is elected under such circumstances must be elected at a | ||||||
10 | special election called by the board and conducted in the same | ||||||
11 | manner as a regular election under Article 3 or 4, as | ||||||
12 | applicable.
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13 | (Source: P.A. 96-429, eff. 8-13-09.)
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14 | (40 ILCS 5/1-113.05 new) | ||||||
15 | Sec. 1-113.05. Transfer of investment authority of certain | ||||||
16 | pension funds established under Article 3 or 4. | ||||||
17 | (a) Upon receiving a certified investment asset list from | ||||||
18 | the Department of Insurance pursuant to Section 3-135.1 of this | ||||||
19 | Code, the board of trustees of an eligible pension fund | ||||||
20 | established under Article 3 of this Code shall cease investment | ||||||
21 | activities and shall transfer all investment assets of the | ||||||
22 | pension fund to the Downstate Police Officer Pension Investment | ||||||
23 | Board in the manner prescribed by rules adopted by the | ||||||
24 | Downstate Police Officer Pension Investment Board. Upon | ||||||
25 | completion of that transfer, the investment authority of the |
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1 | board of trustees shall terminate. | ||||||
2 | (b) Upon receiving a certified investment asset list from | ||||||
3 | the Department of Insurance pursuant to Section 4-128.1 of this | ||||||
4 | Code, the board of trustees of an eligible pension fund | ||||||
5 | established under Article 4 of this Code shall cease investment | ||||||
6 | activities and shall transfer all investment assets of the | ||||||
7 | pension fund to the Downstate Firefighter Pension Investment | ||||||
8 | Board in the manner prescribed by rules adopted by the | ||||||
9 | Downstate Firefighter Pension Investment Board. Upon | ||||||
10 | completion of that transfer, the investment authority of the | ||||||
11 | board of trustees shall terminate.
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12 | (40 ILCS 5/1-113.1)
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13 | Sec. 1-113.1. Investment authority of certain pension | ||||||
14 | funds established under
Article 3 or 4. | ||||||
15 | (a) Beginning 18 months after the effective date of this | ||||||
16 | amendatory Act of the 100th General Assembly or when the | ||||||
17 | transfer of investment authority is made pursuant to Section | ||||||
18 | 1-113.05, whichever occurs first, subsection (b) of this | ||||||
19 | Section does not apply to any pension fund that is an eligible | ||||||
20 | pension fund as defined in Section 1-101.6. | ||||||
21 | This Section continues to apply to any pension fund | ||||||
22 | established under
Article 3 or 4 that is not an eligible | ||||||
23 | pension fund as defined in Section 1-101.6. | ||||||
24 | (b) The board of trustees of a police pension fund | ||||||
25 | established
under Article 3 of this Code or firefighter pension |
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1 | fund established under
Article 4 of this Code shall draw | ||||||
2 | pension funds from the treasurer of the
municipality and, | ||||||
3 | beginning January 1, 1998, invest any part thereof in the
name | ||||||
4 | of the board in the items listed in Sections 1-113.2 through | ||||||
5 | 1-113.4
according to the limitations and requirements of this | ||||||
6 | Article. These
investments shall be made with the care, skill, | ||||||
7 | prudence, and diligence that a
prudent person acting in like | ||||||
8 | capacity and familiar with such matters would use
in the | ||||||
9 | conduct of an enterprise of like character with like aims.
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10 | Interest and any other income from the investments shall be | ||||||
11 | credited to the
pension fund.
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12 | For the purposes of Sections 1-113.2 through 1-113.11, the | ||||||
13 | "net assets" of a
pension fund include both the cash and | ||||||
14 | invested assets of the pension fund.
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15 | (Source: P.A. 90-507, eff. 8-22-97.)
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16 | (40 ILCS 5/1-113.2)
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17 | Sec. 1-113.2. List of permitted investments for certain all | ||||||
18 | Article 3 or 4 pension
funds. | ||||||
19 | (a) Beginning 18 months after the effective date of this | ||||||
20 | amendatory Act of the 100th General Assembly or when the | ||||||
21 | transfer of investment authority is made pursuant to Section | ||||||
22 | 1-113.05, whichever occurs first, subsection (b) of this | ||||||
23 | Section does not apply to any pension fund that is an eligible | ||||||
24 | pension fund as defined in Section 1-101.6. | ||||||
25 | (b) Except as provided in subsection (a), any Any pension |
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1 | fund established under Article 3 or 4 may invest in the
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2 | following items:
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3 | (1) Interest bearing direct obligations of the United | ||||||
4 | States of America.
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5 | (2) Interest bearing obligations to the extent that | ||||||
6 | they are fully
guaranteed or insured as to payment of | ||||||
7 | principal and interest by the United
States of America.
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8 | (3) Interest bearing bonds, notes, debentures, or | ||||||
9 | other similar obligations
of agencies of the United States | ||||||
10 | of America. For the purposes of this Section,
"agencies of | ||||||
11 | the United States of America" includes: (i) the Federal | ||||||
12 | National
Mortgage Association and the Student Loan | ||||||
13 | Marketing Association; (ii) federal
land banks, federal | ||||||
14 | intermediate credit banks,
federal farm credit banks, and | ||||||
15 | any other entity authorized to
issue direct debt | ||||||
16 | obligations of the United States of America under the Farm
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17 | Credit Act of 1971 or amendments to that Act; (iii) federal | ||||||
18 | home loan banks and
the Federal Home Loan Mortgage | ||||||
19 | Corporation; and (iv) any agency created
by Act of Congress | ||||||
20 | that is authorized to issue direct debt obligations of the
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21 | United States of America.
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22 | (4) Interest bearing savings accounts or certificates | ||||||
23 | of deposit, issued by
federally chartered banks or savings | ||||||
24 | and loan associations, to the extent that
the deposits are | ||||||
25 | insured by agencies or instrumentalities of the federal
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26 | government.
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1 | (5) Interest bearing savings accounts or certificates | ||||||
2 | of deposit, issued by
State of Illinois chartered banks or | ||||||
3 | savings and loan associations, to the
extent that the | ||||||
4 | deposits are insured by agencies or instrumentalities of | ||||||
5 | the
federal government.
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6 | (6) Investments in credit unions, to the extent that | ||||||
7 | the investments are
insured by agencies or | ||||||
8 | instrumentalities of the federal government.
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9 | (7) Interest bearing bonds of the State of Illinois.
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10 | (8) Pooled interest bearing accounts managed by the | ||||||
11 | Illinois Public
Treasurer's Investment Pool in accordance | ||||||
12 | with the Deposit of State Moneys Act,
interest bearing | ||||||
13 | funds or pooled accounts of the Illinois Metropolitan | ||||||
14 | Investment Funds, and interest bearing funds or pooled | ||||||
15 | accounts managed, operated, and
administered by banks, | ||||||
16 | subsidiaries of banks, or subsidiaries of bank holding
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17 | companies in accordance with the laws of the State of | ||||||
18 | Illinois.
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19 | (9) Interest bearing bonds or tax anticipation | ||||||
20 | warrants of any county,
township, or municipal corporation | ||||||
21 | of the State of Illinois.
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22 | (10) Direct obligations of the State of Israel, subject | ||||||
23 | to the conditions
and limitations of item (5.1) of Section | ||||||
24 | 1-113.
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25 | (11) Money market mutual funds managed by investment | ||||||
26 | companies that are
registered under the federal Investment |
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1 | Company Act of 1940 and the Illinois
Securities Law of 1953 | ||||||
2 | and are diversified, open-ended management investment
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3 | companies; provided that the portfolio of the money market | ||||||
4 | mutual fund is
limited to the following:
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5 | (i) bonds, notes, certificates of indebtedness, | ||||||
6 | treasury bills, or other
securities that are | ||||||
7 | guaranteed by the full faith and credit of the United
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8 | States of America as to principal and interest;
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9 | (ii) bonds, notes, debentures, or other similar | ||||||
10 | obligations of the United
States of America or its | ||||||
11 | agencies; and
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12 | (iii) short term obligations of corporations | ||||||
13 | organized in the United
States with assets exceeding | ||||||
14 | $400,000,000, provided that (A) the obligations
mature | ||||||
15 | no later than 180 days from the date of purchase, (B) | ||||||
16 | at the time of
purchase, the obligations are rated by | ||||||
17 | at least 2 standard national rating
services at one of | ||||||
18 | their 3 highest classifications, and (C) the | ||||||
19 | obligations
held by the mutual fund do not exceed 10% | ||||||
20 | of the corporation's outstanding
obligations.
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21 | (12) General accounts of life insurance companies | ||||||
22 | authorized to transact
business in Illinois.
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23 | (13) Any combination of the following, not to exceed | ||||||
24 | 10% of the pension
fund's net assets:
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25 | (i) separate accounts that are managed by life | ||||||
26 | insurance companies
authorized to transact business in |
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1 | Illinois and are comprised of diversified
portfolios | ||||||
2 | consisting of common or preferred stocks, bonds, or | ||||||
3 | money market
instruments;
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4 | (ii) separate accounts that are managed by | ||||||
5 | insurance companies authorized
to transact business in | ||||||
6 | Illinois, and are comprised of real estate
or loans | ||||||
7 | upon real estate secured by first or second mortgages; | ||||||
8 | and
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9 | (iii) mutual funds that meet the following | ||||||
10 | requirements:
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11 | (A) the mutual fund is managed by an investment | ||||||
12 | company as defined and
registered under the | ||||||
13 | federal Investment Company Act of 1940 and | ||||||
14 | registered
under the Illinois Securities Law of | ||||||
15 | 1953;
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16 | (B) the mutual fund has been in operation for | ||||||
17 | at least 5 years;
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18 | (C) the mutual fund has total net assets of | ||||||
19 | $250 million or more; and
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20 | (D) the mutual fund is comprised of | ||||||
21 | diversified portfolios of
common or preferred | ||||||
22 | stocks, bonds, or money market instruments.
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23 | (14) Corporate bonds managed through an investment | ||||||
24 | advisor must meet all of the following requirements: | ||||||
25 | (1) The bonds must be rated as investment grade by | ||||||
26 | one of the 2 largest rating services at the time of |
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1 | purchase. | ||||||
2 | (2) If subsequently downgraded below investment | ||||||
3 | grade, the bonds must be liquidated from the portfolio | ||||||
4 | within 90 days after being downgraded by the manager. | ||||||
5 | (Source: P.A. 96-1495, eff. 1-1-11.)
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6 | (40 ILCS 5/1-113.3)
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7 | Sec. 1-113.3. List of additional permitted investments for | ||||||
8 | certain pension funds
with net assets of $2,500,000 or more. | ||||||
9 | (a) Beginning 18 months after the effective date of this | ||||||
10 | amendatory Act of the 100th General Assembly or when the | ||||||
11 | transfer of investment authority is made pursuant to Section | ||||||
12 | 1-113.05, whichever occurs first, subsection (a-5) of this | ||||||
13 | Section does not apply to any pension fund that is an eligible | ||||||
14 | pension fund as defined in Section 1-101.6. | ||||||
15 | (a-5) Except as provided in subsection (a), in (a) In | ||||||
16 | addition to the items in Section
3-113.2, a pension fund | ||||||
17 | established under Article 3 or 4 that has net assets of
at | ||||||
18 | least $2,500,000 may invest a portion of its net assets in the | ||||||
19 | following
items:
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20 | (1) Separate accounts that are managed by life | ||||||
21 | insurance companies
authorized to transact business in | ||||||
22 | Illinois and are comprised of diversified
portfolios | ||||||
23 | consisting of common or preferred stocks, bonds, or money | ||||||
24 | market
instruments.
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25 | (2) Mutual funds that meet the following requirements:
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1 | (i) the mutual fund is managed by an investment | ||||||
2 | company as defined and
registered under the federal | ||||||
3 | Investment Company Act of 1940 and registered
under the | ||||||
4 | Illinois Securities Law of 1953;
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5 | (ii) the mutual fund has been in operation for at | ||||||
6 | least 5 years;
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7 | (iii) the mutual fund has total net assets of $250 | ||||||
8 | million or more; and
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9 | (iv) the mutual fund is comprised of diversified | ||||||
10 | portfolios of common or
preferred stocks, bonds, or | ||||||
11 | money market instruments.
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12 | (b) A pension fund's total investment in the items | ||||||
13 | authorized under this
Section shall not exceed 35% of the | ||||||
14 | market value of the pension fund's net
present assets stated in | ||||||
15 | its most recent annual report on file with the
Illinois | ||||||
16 | Department of Insurance.
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17 | (Source: P.A. 90-507, eff. 8-22-97.)
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18 | (40 ILCS 5/1-113.4)
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19 | Sec. 1-113.4. List of additional permitted investments for | ||||||
20 | certain pension funds
with net assets of $5,000,000 or more. | ||||||
21 | (a) Beginning 18 months after the effective date of this | ||||||
22 | amendatory Act of the 100th General Assembly or when the | ||||||
23 | transfer of investment authority is made pursuant to Section | ||||||
24 | 1-113.05, whichever occurs first, subsection (a-5) of this | ||||||
25 | Section does not apply to any pension fund that is an eligible |
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1 | pension fund as defined in Section 1-101.6. | ||||||
2 | (a-5) Except as provided in subsection (a), in (a) In | ||||||
3 | addition to the items in Sections 1-113.2 and 1-113.3, a | ||||||
4 | pension fund
established under Article 3 or 4 that has net | ||||||
5 | assets of at least $5,000,000 and
has appointed an investment | ||||||
6 | adviser under Section 1-113.5 may, through that
investment | ||||||
7 | adviser, invest a portion of its assets in common and preferred
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8 | stocks authorized for investments of trust funds under the laws | ||||||
9 | of the State
of Illinois. The stocks must meet all of the | ||||||
10 | following requirements:
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11 | (1) The common stocks are listed on a national | ||||||
12 | securities exchange or
board of trade (as defined in the | ||||||
13 | federal Securities Exchange Act of 1934 and
set forth in | ||||||
14 | subdivision G of Section 3 of the Illinois Securities Law | ||||||
15 | of 1953) or quoted in
the National Association of | ||||||
16 | Securities Dealers Automated Quotation System
National | ||||||
17 | Market System (NASDAQ NMS).
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18 | (2) The securities are of a corporation created or | ||||||
19 | existing under the laws
of the United States or any state, | ||||||
20 | district, or territory thereof and the
corporation has been | ||||||
21 | in existence for at least 5 years.
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22 | (3) The corporation has not been in arrears on payment | ||||||
23 | of dividends on its
preferred stock during the preceding 5 | ||||||
24 | years.
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25 | (4) The market value of stock in any one corporation | ||||||
26 | does not exceed 5% of
the cash and invested assets of the |
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1 | pension fund, and the investments in the
stock of any one | ||||||
2 | corporation do not exceed 5% of the total outstanding stock | ||||||
3 | of
that corporation.
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4 | (5) The straight preferred stocks or convertible | ||||||
5 | preferred stocks are
issued or guaranteed by a corporation | ||||||
6 | whose common stock qualifies for
investment by the board.
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7 | (6) The issuer of the stocks has been subject to the | ||||||
8 | requirements of
Section 12 of the federal Securities | ||||||
9 | Exchange Act of 1934 and has been current
with the filing | ||||||
10 | requirements of Sections 13 and 14 of that Act during the
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11 | preceding 3 years.
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12 | (b) A pension fund's total investment in the items | ||||||
13 | authorized under this
Section and Section 1-113.3 shall not | ||||||
14 | exceed 35% of the market value of the
pension fund's net | ||||||
15 | present assets stated in its most recent annual report on
file | ||||||
16 | with the Illinois Department of Insurance.
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17 | (c) A pension fund that invests funds under this Section | ||||||
18 | shall
electronically file with the Division any reports of its | ||||||
19 | investment activities
that the Division may require, at the | ||||||
20 | times and in the format required by the
Division.
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21 | (Source: P.A. 100-201, eff. 8-18-17.)
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22 | (40 ILCS 5/1-113.4a) | ||||||
23 | Sec. 1-113.4a. List of additional permitted investments | ||||||
24 | for certain Article 3 and 4 pension funds with net assets of | ||||||
25 | $10,000,000 or more. |
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1 | (a) Beginning 18 months after the effective date of this | ||||||
2 | amendatory Act of the 100th General Assembly or when the | ||||||
3 | transfer of investment authority is made pursuant to Section | ||||||
4 | 1-113.05, whichever occurs first, subsection (a-5) of this | ||||||
5 | Section does not apply to any pension fund that is an eligible | ||||||
6 | pension fund as defined in Section 1-101.6. | ||||||
7 | (a-5) Except as provided in subsection (a), in (a) In | ||||||
8 | addition to the items in Sections 1-113.2 and 1-113.3, a | ||||||
9 | pension fund established under Article 3 or 4 that has net | ||||||
10 | assets of at least $10,000,000 and has appointed an investment | ||||||
11 | adviser, as defined under Sections 1-101.4 and 1-113.5, may, | ||||||
12 | through that investment adviser, invest an additional portion | ||||||
13 | of its assets in common and preferred stocks and mutual funds. | ||||||
14 | (b) The stocks must meet all of the following requirements: | ||||||
15 | (1) The common stocks must be listed on a national | ||||||
16 | securities exchange or board of trade (as defined in the | ||||||
17 | Federal Securities Exchange Act of 1934 and set forth in | ||||||
18 | paragraph G of Section 3 of the Illinois Securities Law of | ||||||
19 | 1953) or quoted in the National Association of Securities | ||||||
20 | Dealers Automated Quotation System National Market System. | ||||||
21 | (2) The securities must be of a corporation in | ||||||
22 | existence for at least 5 years. | ||||||
23 | (3) The market value of stock in any one corporation | ||||||
24 | may not exceed 5% of the cash and invested assets of the | ||||||
25 | pension fund, and the investments in the stock of any one | ||||||
26 | corporation may not exceed 5% of the total outstanding |
| |||||||
| |||||||
1 | stock of that corporation. | ||||||
2 | (4) The straight preferred stocks or convertible | ||||||
3 | preferred stocks must be issued or guaranteed by a | ||||||
4 | corporation whose common stock qualifies for investment by | ||||||
5 | the board. | ||||||
6 | (c) The mutual funds must meet the following requirements: | ||||||
7 | (1) The mutual fund must be managed by an investment | ||||||
8 | company registered under the Federal Investment Company | ||||||
9 | Act of 1940 and registered under the Illinois Securities | ||||||
10 | Law of 1953. | ||||||
11 | (2) The mutual fund must have been in operation for at | ||||||
12 | least 5 years. | ||||||
13 | (3) The mutual fund must have total net assets of | ||||||
14 | $250,000,000 or more. | ||||||
15 | (4) The mutual fund must be comprised of a diversified | ||||||
16 | portfolio of common or preferred stocks, bonds, or money | ||||||
17 | market instruments. | ||||||
18 | (d) A pension fund's total investment in the items | ||||||
19 | authorized under this Section and Section 1-113.3 shall not | ||||||
20 | exceed 50% effective July 1, 2011 and 55% effective July 1, | ||||||
21 | 2012 of the market value of the pension fund's net present | ||||||
22 | assets stated in its most recent annual report on file with the | ||||||
23 | Department of Insurance. | ||||||
24 | (e) A pension fund that invests funds under this Section | ||||||
25 | shall electronically file with the Division any reports of its | ||||||
26 | investment activities that the Division may require, at the |
| |||||||
| |||||||
1 | time and in the format required by the Division.
| ||||||
2 | (Source: P.A. 96-1495, eff. 1-1-11.)
| ||||||
3 | (40 ILCS 5/1-113.5)
| ||||||
4 | Sec. 1-113.5. Investment advisers and investment services | ||||||
5 | for certain all Article 3 or 4 pension funds.
| ||||||
6 | (a) Beginning 18 months after the effective date of this | ||||||
7 | amendatory Act of the 100th General Assembly or when the | ||||||
8 | transfer of investment authority is made pursuant to Section | ||||||
9 | 1-113.05, whichever occurs first, subsection (a-1) of this | ||||||
10 | Section does not apply to any pension fund that is an eligible | ||||||
11 | pension fund as defined in Section 1-101.6. | ||||||
12 | (a-1) Except as provided in subsection (a), the (a) The | ||||||
13 | board of trustees of a pension fund established under Article 3 | ||||||
14 | or 4 of this Code may appoint investment advisers
as defined in | ||||||
15 | Section 1-101.4. The board of any pension fund investing in
| ||||||
16 | common or preferred stock under Section 1-113.4 shall appoint | ||||||
17 | an investment
adviser before making such investments.
| ||||||
18 | The investment adviser or consultant shall be a fiduciary, | ||||||
19 | as defined in Section 1-101.2,
with respect to the pension fund | ||||||
20 | and shall be one of the following:
| ||||||
21 | (1) an investment adviser registered under the federal | ||||||
22 | Investment Advisers
Act of 1940 and the Illinois Securities | ||||||
23 | Law of 1953;
| ||||||
24 | (2) a bank or trust company authorized to conduct a | ||||||
25 | trust business in
Illinois;
|
| |||||||
| |||||||
1 | (3) a life insurance company authorized to transact | ||||||
2 | business in Illinois;
or
| ||||||
3 | (4) an investment company as defined and registered | ||||||
4 | under the federal
Investment Company Act of 1940 and | ||||||
5 | registered under the Illinois Securities Law
of 1953.
| ||||||
6 | (a-5) Notwithstanding any other provision of law, a person | ||||||
7 | or entity that provides consulting services (referred to as a | ||||||
8 | "consultant" in this Section) to a pension fund with respect to | ||||||
9 | the selection of fiduciaries may not be awarded a contract to | ||||||
10 | provide those consulting services that is more than 5 years in | ||||||
11 | duration. No contract to provide such consulting services may | ||||||
12 | be renewed or extended. At the end of the term of a contract, | ||||||
13 | however, the contractor is eligible to compete for a new | ||||||
14 | contract. No person shall attempt to avoid or contravene the | ||||||
15 | restrictions of this subsection by any means. All offers from | ||||||
16 | responsive offerors shall be accompanied by disclosure of the | ||||||
17 | names and addresses of the following: | ||||||
18 | (1) The offeror. | ||||||
19 | (2) Any entity that is a parent of, or owns a | ||||||
20 | controlling interest in, the offeror. | ||||||
21 | (3) Any entity that is a subsidiary of, or in which a | ||||||
22 | controlling interest is owned by, the offeror. | ||||||
23 | Beginning on July 1, 2008, a person, other than a trustee | ||||||
24 | or an employee of a pension fund or retirement system, may not | ||||||
25 | act as a consultant under this Section unless that person is at | ||||||
26 | least one of the following: (i) registered as an investment |
| |||||||
| |||||||
1 | adviser under the federal Investment Advisers Act of 1940 (15 | ||||||
2 | U.S.C. 80b-1, et seq.); (ii) registered as an investment | ||||||
3 | adviser under the Illinois Securities Law of 1953; (iii) a | ||||||
4 | bank, as defined in the Investment Advisers Act of 1940; or | ||||||
5 | (iv) an insurance company authorized to transact business in | ||||||
6 | this State. | ||||||
7 | (b) All investment advice and services provided by an | ||||||
8 | investment adviser
or a consultant appointed under this Section | ||||||
9 | shall be rendered pursuant to a written contract
between the | ||||||
10 | investment adviser and the board, and in accordance with the
| ||||||
11 | board's investment policy.
| ||||||
12 | The contract shall include all of the following:
| ||||||
13 | (1) acknowledgement in writing by the investment | ||||||
14 | adviser that he or she
is a fiduciary with respect to the | ||||||
15 | pension fund;
| ||||||
16 | (2) the board's investment policy;
| ||||||
17 | (3) full disclosure of direct and indirect fees, | ||||||
18 | commissions, penalties,
and any other compensation that | ||||||
19 | may be received by the investment adviser,
including | ||||||
20 | reimbursement for expenses; and
| ||||||
21 | (4) a requirement that the investment adviser submit | ||||||
22 | periodic written
reports, on at least a quarterly basis, | ||||||
23 | for the board's review at its regularly
scheduled meetings. | ||||||
24 | All returns on investment shall be reported as net returns
| ||||||
25 | after payment of all fees, commissions, and any other | ||||||
26 | compensation.
|
| |||||||
| |||||||
1 | (b-5) Each contract described in subsection (b) shall also | ||||||
2 | include (i) full disclosure of direct and indirect fees, | ||||||
3 | commissions, penalties, and other compensation, including
| ||||||
4 | reimbursement for expenses, that may be paid by or on behalf of | ||||||
5 | the investment adviser or consultant in connection with the | ||||||
6 | provision of services to the pension fund and (ii) a | ||||||
7 | requirement that the investment adviser or consultant update | ||||||
8 | the disclosure promptly after a modification of those payments | ||||||
9 | or an additional payment. | ||||||
10 | Within 30 days after the effective date of this amendatory | ||||||
11 | Act of the 95th General Assembly, each investment adviser and | ||||||
12 | consultant providing services on the effective date or subject | ||||||
13 | to an existing contract for the provision of services must | ||||||
14 | disclose to the board of trustees all direct and indirect fees, | ||||||
15 | commissions, penalties, and other compensation paid by or on
| ||||||
16 | behalf of the investment adviser or consultant in connection | ||||||
17 | with the provision of those services and shall update that | ||||||
18 | disclosure promptly after a modification of those payments or | ||||||
19 | an additional payment. | ||||||
20 | A person required to make a disclosure under subsection (d) | ||||||
21 | is also required to disclose direct and indirect fees, | ||||||
22 | commissions, penalties, or other compensation that shall or may | ||||||
23 | be paid by or on behalf of the person in connection with the | ||||||
24 | rendering of those services. The person shall update the | ||||||
25 | disclosure promptly after a modification of those payments or | ||||||
26 | an additional payment. |
| |||||||
| |||||||
1 | The disclosures required by this subsection shall be in | ||||||
2 | writing and shall include the date and amount of each payment | ||||||
3 | and the name and address of each recipient of a payment. | ||||||
4 | (c) Within 30 days after appointing an investment adviser | ||||||
5 | or consultant, the board shall
submit a copy of the contract to | ||||||
6 | the Division of Insurance of the Department of Financial and | ||||||
7 | Professional Regulation.
| ||||||
8 | (d) Investment services provided by a person other than an | ||||||
9 | investment
adviser appointed under this Section, including but | ||||||
10 | not limited to services
provided by the kinds of persons listed | ||||||
11 | in items (1) through (4) of subsection
(a), shall be rendered | ||||||
12 | only after full written disclosure of direct and
indirect fees, | ||||||
13 | commissions, penalties, and any other compensation that shall | ||||||
14 | or
may be received by the person rendering those services.
| ||||||
15 | (e) The board of trustees of each pension fund shall retain | ||||||
16 | records of
investment transactions in accordance with the rules | ||||||
17 | of the Department of
Financial and Professional Regulation.
| ||||||
18 | (f) Upon the initial transfer of assets and investment | ||||||
19 | authority of an eligible pension fund under subsection (b) of | ||||||
20 | Section 3-135, and thereafter in perpetuity, the Downstate | ||||||
21 | Police Pension Investment Board shall provide all investment | ||||||
22 | services for that eligible pension fund. | ||||||
23 | The Downstate Police Pension Investment Board shall not be | ||||||
24 | held liable by or indemnify any individual annuitant or | ||||||
25 | beneficiary of any eligible pension fund established under | ||||||
26 | Article 3 for nonpayment of benefits by the eligible pension |
| |||||||
| |||||||
1 | fund. | ||||||
2 | (g) Upon the initial transfer of assets and investment | ||||||
3 | authority of an eligible pension fund under subsection (b) of | ||||||
4 | Section 4-128, and thereafter in perpetuity, the Downstate | ||||||
5 | Firefighter Pension Investment Board shall provide all | ||||||
6 | investment services for that eligible pension fund. | ||||||
7 | The Downstate Firefighter Pension Investment Board shall | ||||||
8 | not be held liable by or indemnify any individual annuitant or | ||||||
9 | beneficiary of any eligible pension fund established under | ||||||
10 | Article 4 for nonpayment of benefits by the eligible pension | ||||||
11 | fund. | ||||||
12 | (Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.)
| ||||||
13 | (40 ILCS 5/1-113.6)
| ||||||
14 | Sec. 1-113.6. Investment policies. | ||||||
15 | (a) Except as provided in subsection (b), every Every board | ||||||
16 | of trustees of a pension
fund shall adopt a written investment | ||||||
17 | policy and file a copy of that policy
with the Department of | ||||||
18 | Insurance within 30 days after its adoption. Whenever a
board | ||||||
19 | changes its investment policy, it shall file a copy of the new | ||||||
20 | policy
with the Department within 30 days.
| ||||||
21 | (b) Beginning 18 months after the effective date of this | ||||||
22 | amendatory Act of the 100th General Assembly or when the | ||||||
23 | transfer of its investment authority under Section 1-113.05, | ||||||
24 | whichever occurs first, the requirement to maintain and file an | ||||||
25 | investment policy under subsection (a) ceases to apply to the |
| |||||||
| |||||||
1 | board of trustees of an eligible pension
fund established under | ||||||
2 | Article 3 or Article 4 of this Code. | ||||||
3 | (Source: P.A. 90-507, eff. 8-22-97.)
| ||||||
4 | (40 ILCS 5/1-113.7)
| ||||||
5 | Sec. 1-113.7. Registration of investments; custody and | ||||||
6 | safekeeping. | ||||||
7 | This Section does not apply to investments that have been | ||||||
8 | transferred under Section 1-113.05. | ||||||
9 | The
board of trustees may register the investments of its | ||||||
10 | pension fund in the name
of the pension fund, in the nominee | ||||||
11 | name of a bank or trust company authorized
to conduct a trust | ||||||
12 | business in Illinois, or in the nominee name of the Illinois
| ||||||
13 | Public Treasurer's Investment Pool.
| ||||||
14 | The assets of the pension fund and ownership of its | ||||||
15 | investments shall be
protected through third-party custodial | ||||||
16 | safekeeping. The board of trustees
may appoint as custodian of | ||||||
17 | the investments of its pension fund the treasurer
of the | ||||||
18 | municipality, a bank or trust company authorized to conduct a | ||||||
19 | trust
business in Illinois, or the Illinois Public Treasurer's | ||||||
20 | Investment Pool.
| ||||||
21 | A dealer may not maintain possession of or control over | ||||||
22 | securities of a
pension fund subject to the provisions of this | ||||||
23 | Section unless it is registered
as a broker-dealer with the | ||||||
24 | U.S. Securities and Exchange Commission and is a
member in good | ||||||
25 | standing of the National Association of Securities Dealers, and
|
| |||||||
| |||||||
1 | (1) with respect to securities that are not issued only in | ||||||
2 | book-entry form,
(A) all such securities of each fund are | ||||||
3 | either held in safekeeping in a place
reasonably free from risk | ||||||
4 | of destruction or held in custody by a securities
depository | ||||||
5 | that is a "clearing agency" registered with the U.S. Securities | ||||||
6 | and
Exchange Commission, (B) the dealer is a member of the | ||||||
7 | Securities Investor
Protection Corporation, (C) the dealer | ||||||
8 | sends to each fund, no less frequently
than each calendar | ||||||
9 | quarter, an itemized statement showing the moneys and
| ||||||
10 | securities in the custody or possession of the dealer at the | ||||||
11 | end of such
period, and (D) an independent certified public | ||||||
12 | accountant
conducts an audit, no less frequently than each | ||||||
13 | calendar year, that reviews
the dealer's internal accounting | ||||||
14 | controls and procedures for safeguarding
securities; and (2) | ||||||
15 | with respect
to securities that are issued only in book-entry | ||||||
16 | form, (A) all such securities
of each fund are held either in a | ||||||
17 | securities depository that is a "clearing
agency" registered | ||||||
18 | with the U.S. Securities and Exchange Commission or in a
bank | ||||||
19 | that is a member of the Federal Reserve System, (B) the dealer | ||||||
20 | records the
ownership interest of the funds in such securities | ||||||
21 | on the dealer's books and
records, (C) the dealer is a member | ||||||
22 | of the Securities Investor Protection
Corporation, (D) the | ||||||
23 | dealer sends to each fund, no less frequently than each
| ||||||
24 | calendar quarter, an itemized statement showing the moneys and | ||||||
25 | securities in
the custody or possession of the dealer at the | ||||||
26 | end of such period, and (E) the
dealer's financial statement |
| |||||||
| |||||||
1 | (which shall contain among other things a
statement of the | ||||||
2 | dealer's net capital and its required net capital computed in
| ||||||
3 | accordance with Rule 15c3-1 under the Securities Exchange Act | ||||||
4 | of 1934) is
audited annually by an independent certified public | ||||||
5 | accountant, and the
dealer's most recent audited financial | ||||||
6 | statement is furnished to the fund. No
broker-dealer serving as | ||||||
7 | a custodian for any public pension fund as provided by
this Act | ||||||
8 | shall be authorized to serve as an investment advisor for that | ||||||
9 | same
public pension fund as described in Section 1-101.4 of | ||||||
10 | this Code, to the
extent that the investment advisor acquires | ||||||
11 | or disposes of any asset of that
same public pension fund.
| ||||||
12 | Notwithstanding the foregoing, in no event may a broker or | ||||||
13 | dealer that is a
natural person maintain possession of or | ||||||
14 | control over securities or other
assets of a pension fund | ||||||
15 | subject to the provisions of this Section. In
maintaining | ||||||
16 | securities of a pension fund subject to the provisions of this
| ||||||
17 | Section, each dealer must maintain those securities in | ||||||
18 | conformity with the
provisions of Rule 15c3-3(b) of the | ||||||
19 | Securities Exchange Act of 1934 (Physical
Possession or Control | ||||||
20 | of Securities). The Director of the Department of
Insurance may | ||||||
21 | adopt such rules and regulations as shall be necessary and
| ||||||
22 | appropriate in his or her judgment to effectuate the purposes | ||||||
23 | of this
Section.
| ||||||
24 | A bank or trust company authorized to conduct a trust | ||||||
25 | business in Illinois
shall register, deposit, or hold | ||||||
26 | investments for safekeeping, all in accordance
with the |
| |||||||
| |||||||
1 | obligations and subject to the limitations of the Securities in
| ||||||
2 | Fiduciary Accounts Act.
| ||||||
3 | (Source: P.A. 92-651, eff. 7-11-02.)
| ||||||
4 | (40 ILCS 5/1-136 new) | ||||||
5 | Sec. 1-136. Fiscal year for Article 3 and Article 4 pension | ||||||
6 | funds. For every pension fund established under Article 3 or | ||||||
7 | Article 4 of this Code, by April 30, 2019, the fiscal year of | ||||||
8 | the fund shall be transitioned to a fiscal year ending April | ||||||
9 | 30, 2019, so that the fund thereafter operates on a May 1 to | ||||||
10 | April 30 fiscal year.
| ||||||
11 | (40 ILCS 5/1A-112)
| ||||||
12 | Sec. 1A-112. Fees.
| ||||||
13 | (a) Every pension fund that is required to file an annual | ||||||
14 | statement under
Section 1A-109 shall pay to the Department an | ||||||
15 | annual compliance fee. In the
case of a pension fund under | ||||||
16 | Article 3 or 4 of this Code, the annual compliance
fee shall be | ||||||
17 | 0.04% 0.02% ( 4 2 basis points) of the total
assets of the | ||||||
18 | pension
fund, as reported in the most current annual statement | ||||||
19 | of the fund, but not
more than $16,000 $8,000 . In the case of | ||||||
20 | all other pension funds and
retirement
systems, the annual | ||||||
21 | compliance fee shall be $16,000 $8,000 .
| ||||||
22 | (b) The annual compliance fee shall be due on June 30 for | ||||||
23 | the following
State fiscal year, except that the fee payable in | ||||||
24 | 1997 for fiscal year 1998
shall be due no earlier than 30 days |
| |||||||
| |||||||
1 | following the effective date of this
amendatory Act of 1997.
| ||||||
2 | (c) Any information obtained by the Division that is | ||||||
3 | available to the public
under the Freedom of Information Act | ||||||
4 | and is either compiled in published form
or maintained on a | ||||||
5 | computer processible medium shall be furnished upon the
written | ||||||
6 | request of any applicant and the payment of a reasonable | ||||||
7 | information
services fee established by the Director, | ||||||
8 | sufficient to cover the total cost to
the Division of | ||||||
9 | compiling, processing, maintaining, and generating the
| ||||||
10 | information. The information may be furnished by means of | ||||||
11 | published copy or on
a computer processed or computer | ||||||
12 | processible medium.
| ||||||
13 | No fee may be charged to any person for information that | ||||||
14 | the Division is
required by law to furnish to that person.
| ||||||
15 | (d) Except as otherwise provided in this Section, all fees | ||||||
16 | and penalties
collected by the Department under this Code shall | ||||||
17 | be deposited into the Public
Pension Regulation Fund.
| ||||||
18 | (e) Fees collected under subsection (c) of this Section and | ||||||
19 | money collected
under Section 1A-107 shall be deposited into | ||||||
20 | the Technology Management Revolving Fund and credited to the | ||||||
21 | account of the Department's Public Pension
Division. This | ||||||
22 | income shall be used exclusively for the
purposes set forth in | ||||||
23 | Section 1A-107. Notwithstanding the provisions of
Section | ||||||
24 | 408.2 of the Illinois Insurance Code, no surplus funds | ||||||
25 | remaining in
this account shall be deposited in the Insurance | ||||||
26 | Financial Regulation Fund.
All money in this account that the |
| |||||||
| |||||||
1 | Director certifies is not needed for the
purposes set forth in | ||||||
2 | Section 1A-107 of this Code shall be transferred to the
Public | ||||||
3 | Pension Regulation Fund.
| ||||||
4 | (f) Nothing in this Code prohibits the General Assembly | ||||||
5 | from appropriating
funds from the General Revenue Fund to the | ||||||
6 | Department for the purpose of
administering or enforcing this | ||||||
7 | Code.
| ||||||
8 | (Source: P.A. 100-23, eff. 7-6-17.)
| ||||||
9 | (40 ILCS 5/1A-113)
| ||||||
10 | Sec. 1A-113. Penalties.
| ||||||
11 | (a) A pension fund that fails, without just cause, to file | ||||||
12 | its annual
statement within the time prescribed under Section | ||||||
13 | 1A-109 shall pay to the
Department a penalty to be determined | ||||||
14 | by the Department, which shall not exceed
$100 for each day's | ||||||
15 | delay.
| ||||||
16 | (b) A pension fund that fails, without just cause, to file | ||||||
17 | its actuarial
statement within the time prescribed under | ||||||
18 | Section 1A-110 or 1A-111 shall pay
to the Department a penalty | ||||||
19 | to be determined by the Department, which shall not
exceed $100 | ||||||
20 | for each day's delay.
| ||||||
21 | (c) A pension fund that fails to pay a fee within the time | ||||||
22 | prescribed under
Section 1A-112 shall pay to the Department a | ||||||
23 | penalty of 5% of the amount of the
fee for each month or part of | ||||||
24 | a month that the fee is late. The entire penalty
shall not | ||||||
25 | exceed 25% of the fee due.
|
| |||||||
| |||||||
1 | (c-5) Whenever the Director of Insurance determines that a | ||||||
2 | pension fund is not in compliance with Section 3-132, 3-135, | ||||||
3 | 3-135.1, 3-135.2, 4-123, 4-128, 4-128.1, or 4-128.2 of this | ||||||
4 | Code: | ||||||
5 | (1) The Director of Insurance shall notify the pension | ||||||
6 | fund board of trustees in writing of the noncompliance. | ||||||
7 | (2) The board of trustees of the pension fund shall | ||||||
8 | take immediate steps to come into compliance with the | ||||||
9 | applicable provisions of this Code within 15 days after the | ||||||
10 | date of the notice of noncompliance. | ||||||
11 | (3) If the pension fund does not come into compliance | ||||||
12 | with the applicable provisions of this Code within 15 days | ||||||
13 | after the date of the notice, the Department of Insurance | ||||||
14 | shall assess a penalty of up to $2,000 per day of | ||||||
15 | noncompliance, to be paid by the fund within 21 days after | ||||||
16 | the date of the order assessing the penalty. | ||||||
17 | (4) A board so notified and assessed may request a | ||||||
18 | hearing on the noncompliance alleged in the notice within | ||||||
19 | 15 days after the date of the notice. | ||||||
20 | Any hearing held under this subsection (c-5) shall be held | ||||||
21 | in accordance with the rules of the Department of Insurance. | ||||||
22 | (d) This subsection applies to any governmental unit or | ||||||
23 | pension fund , as defined in Section
1A-102, that is subject to | ||||||
24 | any law establishing a pension fund or retirement
system for | ||||||
25 | the benefit of employees of the governmental unit.
| ||||||
26 | Whenever the Division determines by examination, |
| |||||||
| |||||||
1 | investigation, or in any
other manner that the governing body | ||||||
2 | or any elected or appointed officer or
official of a | ||||||
3 | governmental unit has failed to comply with any provision of | ||||||
4 | this Code that
law :
| ||||||
5 | (1) The Director shall notify in writing the governing | ||||||
6 | body, officer, or
official of the specific provision or | ||||||
7 | provisions of the law with which the
person has failed to | ||||||
8 | comply.
| ||||||
9 | (2) Upon receipt of the notice, the person notified | ||||||
10 | shall take immediate
steps to comply with the provisions of | ||||||
11 | law specified in the notice.
| ||||||
12 | (3) If the person notified fails to comply within a | ||||||
13 | reasonable time after
receiving the notice, the Director | ||||||
14 | may hold a hearing at which the person
notified may show | ||||||
15 | cause for noncompliance with the law.
| ||||||
16 | (4) If upon hearing the Director determines that good | ||||||
17 | and sufficient cause
for noncompliance has not been shown, | ||||||
18 | the Director may order the person to
submit evidence of | ||||||
19 | compliance within a specified period of not less than 30
| ||||||
20 | days.
| ||||||
21 | (5) If evidence of compliance has not been submitted to | ||||||
22 | the Director
within the period of time prescribed in the | ||||||
23 | order and no administrative appeal
from the order has been | ||||||
24 | initiated, the Director may assess a civil penalty of
up to | ||||||
25 | $2,000 against the governing body, officer, or
official for | ||||||
26 | each noncompliance with an order of the Director.
|
| |||||||
| |||||||
1 | The Director shall develop by rule, with as much | ||||||
2 | specificity as
practicable, the standards and criteria to be | ||||||
3 | used in assessing penalties and
their amounts. The standards | ||||||
4 | and criteria shall include, but need not be
limited to, | ||||||
5 | consideration of evidence of efforts made in good faith to | ||||||
6 | comply
with applicable legal requirements. This rulemaking is | ||||||
7 | subject to the
provisions of the Illinois Administrative | ||||||
8 | Procedure Act.
| ||||||
9 | If a penalty is not paid within 30 days of the date of | ||||||
10 | assessment, the
Director without further notice shall report | ||||||
11 | the act of noncompliance to the
Attorney General of this State. | ||||||
12 | It shall be the duty of the Attorney General
or, if the | ||||||
13 | Attorney General so designates, the State's Attorney of the | ||||||
14 | county
in which the governmental unit is located to apply | ||||||
15 | promptly by complaint on
relation of the Director of Insurance | ||||||
16 | in the name of the people of the State of
Illinois, as | ||||||
17 | plaintiff, to the circuit court of the county in which the
| ||||||
18 | governmental unit is located for enforcement of the penalty | ||||||
19 | prescribed in this
subsection or for such additional relief as | ||||||
20 | the nature of the case and the
interest of the employees of the | ||||||
21 | governmental unit or the public may require.
| ||||||
22 | (e) Whoever knowingly makes a false certificate, entry, or | ||||||
23 | memorandum upon
any of the books or papers pertaining to any | ||||||
24 | pension fund or upon any
statement, report, or exhibit filed or | ||||||
25 | offered for file with the Division or
the Director of Insurance | ||||||
26 | in the course of any examination, inquiry, or
investigation, |
| |||||||
| |||||||
1 | with intent to deceive the Director, the Division, or any of | ||||||
2 | its
employees is guilty of a Class A misdemeanor.
| ||||||
3 | (Source: P.A. 90-507, eff. 8-22-97.)
| ||||||
4 | (40 ILCS 5/3-125) (from Ch. 108 1/2, par. 3-125)
| ||||||
5 | Sec. 3-125. Financing. | ||||||
6 | (a) The city council or the board of trustees of
the | ||||||
7 | municipality shall annually levy a tax upon all
the taxable | ||||||
8 | property of the municipality at the rate on the dollar which
| ||||||
9 | will produce an amount which, when added to the deductions from | ||||||
10 | the salaries
or wages of police officers, and revenues
| ||||||
11 | available from other
sources, will equal a sum sufficient to | ||||||
12 | meet
the annual requirements of the police pension fund. The | ||||||
13 | annual
requirements to be provided by such tax levy are equal
| ||||||
14 | to (1) the normal cost of the pension fund for the year | ||||||
15 | involved, plus
(2) an amount sufficient to bring the total | ||||||
16 | assets of the pension fund up to 90% of the total actuarial | ||||||
17 | liabilities of the pension fund by the end of municipal fiscal | ||||||
18 | year 2040, as annually updated and determined by an enrolled | ||||||
19 | actuary employed by the Illinois Department of Insurance or by | ||||||
20 | an enrolled actuary retained by the pension fund or the | ||||||
21 | municipality. In making these determinations, the required | ||||||
22 | minimum employer contribution shall be calculated each year as | ||||||
23 | a level percentage of payroll over the years remaining up to | ||||||
24 | and including fiscal year 2040 and shall be determined under | ||||||
25 | the projected unit credit actuarial cost method and utilizing |
| |||||||
| |||||||
1 | the rate of return and asset total determined under Article 22B | ||||||
2 | of this Code . The tax shall be levied and
collected in the same | ||||||
3 | manner as the general taxes
of the municipality, and in | ||||||
4 | addition to all other taxes now or hereafter authorized to
be | ||||||
5 | levied upon all property within the municipality, and shall be | ||||||
6 | in
addition to the amount authorized to be levied for general | ||||||
7 | purposes as
provided by Section 8-3-1 of the Illinois Municipal | ||||||
8 | Code, approved May
29, 1961, as amended. The tax shall be | ||||||
9 | forwarded directly to the treasurer of the board within 30 | ||||||
10 | business days after receipt by the county.
| ||||||
11 | (b) For purposes of determining the required employer | ||||||
12 | contribution to a pension fund, the value of the pension fund's | ||||||
13 | assets shall be equal to the actuarial value of the pension | ||||||
14 | fund's assets, which shall be calculated as follows: | ||||||
15 | (1) On March 30, 2011, the actuarial value of a pension | ||||||
16 | fund's assets shall be equal to the market value of the | ||||||
17 | assets as of that date. | ||||||
18 | (2) In determining the actuarial value of the System's | ||||||
19 | assets for fiscal years after March 30, 2011, any actuarial | ||||||
20 | gains or losses from investment return incurred in a fiscal | ||||||
21 | year shall be recognized in equal annual amounts over the | ||||||
22 | 5-year period following that fiscal year. | ||||||
23 | (c) If a participating municipality fails to transmit to | ||||||
24 | the fund contributions required of it under this Article for | ||||||
25 | more than 90 days after the payment of those contributions is | ||||||
26 | due, the fund may, after giving notice to the municipality, |
| |||||||
| |||||||
1 | apply to the Director of Insurance for intercept. The | ||||||
2 | Department of Insurance shall certify to the State Comptroller | ||||||
3 | the amounts of the delinquent payments in accordance with any | ||||||
4 | applicable rules of the Department of Insurance Comptroller , | ||||||
5 | and the Comptroller must, beginning in fiscal year 2016, deduct | ||||||
6 | and remit to the fund the certified amounts or a portion of | ||||||
7 | those amounts from the following proportions of payments of | ||||||
8 | State funds to the municipality: | ||||||
9 | (1) in fiscal year 2016, one-third of the total amount | ||||||
10 | of any payments of State funds to the municipality; | ||||||
11 | (2) in fiscal year 2017, two-thirds of the total amount | ||||||
12 | of any payments of State funds to the municipality; and | ||||||
13 | (3) in fiscal year 2018 and each fiscal year | ||||||
14 | thereafter, the total amount of any payments of State funds | ||||||
15 | to the municipality. | ||||||
16 | The State Comptroller may not deduct from any payments of | ||||||
17 | State funds to the municipality more than the amount of | ||||||
18 | delinquent payments certified to the State Comptroller by the | ||||||
19 | fund. | ||||||
20 | (d) The police pension fund shall consist of the following | ||||||
21 | moneys which
shall be set apart by the treasurer of the | ||||||
22 | municipality:
| ||||||
23 | (1) All moneys derived from the taxes levied hereunder;
| ||||||
24 | (2) Contributions by police officers under Section | ||||||
25 | 3-125.1;
| ||||||
26 | (3) All moneys accumulated by the municipality under |
| |||||||
| |||||||
1 | any previous
legislation establishing a fund for the | ||||||
2 | benefit of disabled or retired
police officers;
| ||||||
3 | (4) Donations, gifts or other transfers authorized by | ||||||
4 | this
Article.
| ||||||
5 | (e) The Commission on Government Forecasting and
| ||||||
6 | Accountability shall conduct a study of all funds established
| ||||||
7 | under this Article and shall report its findings to the General
| ||||||
8 | Assembly on or before January 1, 2013. To the fullest extent | ||||||
9 | possible, the study shall include, but not be limited to, the | ||||||
10 | following: | ||||||
11 | (1) fund balances; | ||||||
12 | (2) historical employer contribution rates for each
| ||||||
13 | fund; | ||||||
14 | (3) the actuarial formulas used as a basis for employer
| ||||||
15 | contributions, including the actual assumed rate of return
| ||||||
16 | for each year, for each fund; | ||||||
17 | (4) available contribution funding sources; | ||||||
18 | (5) the impact of any revenue limitations caused by
| ||||||
19 | PTELL and employer home rule or non-home rule status; and | ||||||
20 | (6) existing statutory funding compliance procedures
| ||||||
21 | and funding enforcement mechanisms for all municipal
| ||||||
22 | pension funds. | ||||||
23 | (Source: P.A. 99-8, eff. 7-9-15.)
| ||||||
24 | (40 ILCS 5/3-127) (from Ch. 108 1/2, par. 3-127)
| ||||||
25 | Sec. 3-127. Reserves. |
| |||||||
| |||||||
1 | (a) The board shall establish and maintain a reserve
to | ||||||
2 | insure the payment of all obligations incurred under this | ||||||
3 | Article
excluding retirement annuities established under | ||||||
4 | Section 3-109.3. The
reserve to be accumulated shall be equal | ||||||
5 | to the estimated total actuarial
requirements of the fund.
| ||||||
6 | (b) In the case of an eligible pension fund that has | ||||||
7 | transferred its investment authority to the Downstate Police | ||||||
8 | Pension Investment Board under Section 1-113.05 of this Code, | ||||||
9 | the assets invested by the Downstate Police Pension Investment | ||||||
10 | Board on behalf of the pension fund, and the dividends and | ||||||
11 | other investment earnings attributable thereto, shall be | ||||||
12 | considered as part of the reserve for the purposes of this | ||||||
13 | Section. | ||||||
14 | The Downstate Police Pension Investment Board shall report | ||||||
15 | to the board of each such fund at least annually the financial | ||||||
16 | information on the invested assets and earnings attributable to | ||||||
17 | that pension fund so that the board may make the determinations | ||||||
18 | required under this Article. | ||||||
19 | (c) If a pension fund has a reserve of less than the | ||||||
20 | accrued liabilities of
the fund, the board of the pension fund, | ||||||
21 | in making its annual report to the
city council or board of | ||||||
22 | trustees of the municipality, shall designate the
amount, | ||||||
23 | calculated as a level percentage of payroll, needed annually to
| ||||||
24 | insure the accumulation of the reserve to the level of the | ||||||
25 | fund's accrued
liabilities over a period of 40 years from July | ||||||
26 | 1, 1993 for pension funds then
in operation, or from the date |
| |||||||
| |||||||
1 | of establishment in the case of a fund created
thereafter, so | ||||||
2 | that the necessary reserves will be attained over such a | ||||||
3 | period.
| ||||||
4 | (Source: P.A. 91-939, eff. 2-1-01.)
| ||||||
5 | (40 ILCS 5/3-132) (from Ch. 108 1/2, par. 3-132)
| ||||||
6 | Sec. 3-132. To control and manage the Pension Fund. | ||||||
7 | (a) In accordance with the
applicable provisions of | ||||||
8 | Articles 1 and 1A and this Article, the board of trustees of | ||||||
9 | the pension fund shall have the authority to control and
| ||||||
10 | manage, exclusively, the following:
| ||||||
11 | (1) the pension fund, and
| ||||||
12 | (2) investment expenditures and income, including | ||||||
13 | interest dividends,
capital gains and other distributions | ||||||
14 | on the investments, and
| ||||||
15 | (2) (3) all money donated, paid, assessed, or provided | ||||||
16 | by
law for the pensioning of disabled and retired police | ||||||
17 | officers, their
surviving spouses, minor children, and | ||||||
18 | dependent parents. All such money received or collected | ||||||
19 | shall be credited by the treasurer of the
municipality to | ||||||
20 | the custodian's account of the pension fund and
held by the | ||||||
21 | custodian for purposes of investment pursuant to Article | ||||||
22 | 22B of this Code. | ||||||
23 | (b) Pursuant to rules adopted under Article 22B of this | ||||||
24 | Code, the board of trustees of an eligible pension fund shall | ||||||
25 | make periodic written application to the Downstate Police |
| |||||||
| |||||||
1 | Pension Investment Board for receipt and deposit of reserves | ||||||
2 | into the pension fund. Reserves in the amount of 3 months' | ||||||
3 | current liabilities, including annuity and benefit payments | ||||||
4 | and operational expenses owed by the fund, shall be held by the | ||||||
5 | treasurer of the municipality subject to the order and
control | ||||||
6 | of the board. The treasurer of the municipality shall maintain | ||||||
7 | a
record of all money received, transferred, and held for the | ||||||
8 | account of the
board.
| ||||||
9 | (c) In case of any dispute that may arise between the board | ||||||
10 | of trustees of the eligible pension fund and the Downstate | ||||||
11 | Police Pension Investment Board pursuant to subsection (b) of | ||||||
12 | this Section, the board of trustees of the eligible pension | ||||||
13 | fund shall appeal the dispute to the Director of Insurance. If | ||||||
14 | the Director finds that there exists a good faith dispute | ||||||
15 | between the parties, the Director may hold a hearing in | ||||||
16 | accordance with the rules of the Department of Insurance. | ||||||
17 | (Source: P.A. 90-507, eff. 8-22-97.)
| ||||||
18 | (40 ILCS 5/3-135) (from Ch. 108 1/2, par. 3-135)
| ||||||
19 | Sec. 3-135. To invest , manage, and transfer funds. | ||||||
20 | (a) Except as provided in subsection (b), Beginning January | ||||||
21 | 1, 1998, the
board shall invest funds in accordance with | ||||||
22 | Sections 1-113.1 through 1-113.10
of this Code. | ||||||
23 | Any pension fund that is not an eligible pension fund as | ||||||
24 | defined in Section 1-101.6 of this Code shall retain the | ||||||
25 | authority to control and manage investment expenditures and |
| |||||||
| |||||||
1 | income, including interest, dividends, capital gains, and | ||||||
2 | other distributions on the investments.
| ||||||
3 | (b) The board of an eligible pension fund that receives a | ||||||
4 | certified investment asset list under Section 3-135.1 shall | ||||||
5 | cease investment activities upon receiving the certified | ||||||
6 | investment asset list and shall transfer all investment assets, | ||||||
7 | minus assets needed to comply with subsection (b) of Section | ||||||
8 | 3-132, to the Downstate Police Pension Investment Board in the | ||||||
9 | manner prescribed by rules adopted by the Downstate Police | ||||||
10 | Pension Investment Board under Article 22B. Upon completion of | ||||||
11 | the transfer described in this subsection, the investment | ||||||
12 | authority of the board shall terminate. | ||||||
13 | (Source: P.A. 90-507, eff. 8-22-97.)
| ||||||
14 | (40 ILCS 5/3-135.1 new) | ||||||
15 | Sec. 3-135.1. Certified investment asset list. | ||||||
16 | (a) Within 18 months of the effective date of this | ||||||
17 | amendatory Act of the 100th General Assembly, the Department of | ||||||
18 | Insurance shall audit the investment assets of each eligible | ||||||
19 | pension fund established under this Article to determine a | ||||||
20 | certified investment asset list. The audit shall be performed | ||||||
21 | by a certified public accountant. The board of the pension fund | ||||||
22 | shall defray the expense of the audit. | ||||||
23 | (b) Upon completion of the audit, the Department of | ||||||
24 | Insurance shall provide the certified investment asset list to | ||||||
25 | the eligible pension fund and the Downstate Police Pension |
| |||||||
| |||||||
1 | Investment Board. The Department of Insurance may adopt rules | ||||||
2 | governing the creation and distribution of the certified | ||||||
3 | investment asset list.
| ||||||
4 | (40 ILCS 5/3-135.2 new) | ||||||
5 | Sec. 3-135.2. To transfer investment funds. At each | ||||||
6 | quarterly meeting of the board, the board of trustees of any | ||||||
7 | eligible pension fund shall transfer any available funds for | ||||||
8 | investment to the Downstate Police Pension Investment Board in | ||||||
9 | accordance with provisions of Article 22B of this Code. Each | ||||||
10 | transfer shall be made within 30 days after the end of the | ||||||
11 | fiscal year quarter and written notice of the transfer shall be | ||||||
12 | given to the Downstate Police Pension Investment Board.
| ||||||
13 | (40 ILCS 5/4-118) (from Ch. 108 1/2, par. 4-118)
| ||||||
14 | Sec. 4-118. Financing.
| ||||||
15 | (a) The city council or the board of trustees
of the | ||||||
16 | municipality shall annually levy a tax upon all the taxable | ||||||
17 | property
of the municipality at the rate on the dollar which | ||||||
18 | will produce an amount
which, when added to the deductions from | ||||||
19 | the salaries or wages of
firefighters and revenues available | ||||||
20 | from other sources, will equal a sum
sufficient to meet the | ||||||
21 | annual actuarial requirements of the pension fund,
as | ||||||
22 | determined by an enrolled actuary employed by the Illinois | ||||||
23 | Department of
Insurance or by an enrolled actuary retained by | ||||||
24 | the pension fund or
municipality. For the purposes of this |
| |||||||
| |||||||
1 | Section, the annual actuarial
requirements of the pension fund | ||||||
2 | are equal to (1) the normal cost of the
pension fund, or 17.5% | ||||||
3 | of the salaries and wages to be paid to firefighters
for the | ||||||
4 | year involved, whichever is greater, plus (2) an annual amount
| ||||||
5 | sufficient to bring the total assets of the pension fund up to | ||||||
6 | 90% of the total actuarial liabilities of the pension fund by | ||||||
7 | the end of municipal fiscal year 2040, as annually updated and | ||||||
8 | determined by an enrolled actuary employed by the Illinois | ||||||
9 | Department of Insurance or by an enrolled actuary retained by | ||||||
10 | the pension fund or the municipality. In making these | ||||||
11 | determinations, the required minimum employer contribution | ||||||
12 | shall be calculated each year as a level percentage of payroll | ||||||
13 | over the years remaining up to and including fiscal year 2040 | ||||||
14 | and shall be determined under the projected unit credit | ||||||
15 | actuarial cost method and utilizing the rate of return and | ||||||
16 | asset total determined under Article 22C of this Code . The | ||||||
17 | amount
to be applied towards the amortization of the unfunded | ||||||
18 | accrued liability in any
year shall not be less than the annual | ||||||
19 | amount required to amortize the unfunded
accrued liability, | ||||||
20 | including interest, as a level percentage of payroll over
the | ||||||
21 | number of years remaining in the 40 year amortization period.
| ||||||
22 | (a-5) For purposes of determining the required employer | ||||||
23 | contribution to a pension fund, the value of the pension fund's | ||||||
24 | assets shall be equal to the actuarial value of the pension | ||||||
25 | fund's assets, which shall be calculated as follows: | ||||||
26 | (1) On March 30, 2011, the actuarial value of a pension |
| |||||||
| |||||||
1 | fund's assets shall be equal to the market value of the | ||||||
2 | assets as of that date. | ||||||
3 | (2) In determining the actuarial value of the pension | ||||||
4 | fund's assets for fiscal years after March 30, 2011, any | ||||||
5 | actuarial gains or losses from investment return incurred | ||||||
6 | in a fiscal year shall be recognized in equal annual | ||||||
7 | amounts over the 5-year period following that fiscal year. | ||||||
8 | (b) The tax shall be levied and collected in the same | ||||||
9 | manner
as the general taxes of the municipality, and shall be | ||||||
10 | in addition
to all other taxes now or hereafter authorized to | ||||||
11 | be levied upon all
property within the municipality, and in | ||||||
12 | addition to the amount authorized
to be levied for general | ||||||
13 | purposes, under Section 8-3-1 of the Illinois
Municipal Code or | ||||||
14 | under Section 14 of the Fire Protection District Act. The
tax | ||||||
15 | shall be forwarded directly to the treasurer of the board | ||||||
16 | within 30
business days of receipt by the county
(or, in the | ||||||
17 | case of amounts
added to the tax levy under subsection (f), | ||||||
18 | used by the municipality to pay the
employer contributions | ||||||
19 | required under subsection (b-1) of Section 15-155 of
this | ||||||
20 | Code).
| ||||||
21 | (b-5) If a participating municipality fails to transmit to | ||||||
22 | the fund contributions required of it under this Article for | ||||||
23 | more than 90 days after the payment of those contributions is | ||||||
24 | due, the fund may, after giving notice to the municipality, | ||||||
25 | apply to the Director of Insurance for intercept. The | ||||||
26 | Department of Insurance shall certify to the State Comptroller |
| |||||||
| |||||||
1 | the amounts of the delinquent payments in accordance with any | ||||||
2 | applicable rules of the Department of Insurance Comptroller , | ||||||
3 | and the Comptroller must, beginning in fiscal year 2016, deduct | ||||||
4 | and remit to the fund the certified amounts or a portion of | ||||||
5 | those amounts from the following proportions of payments of | ||||||
6 | State funds to the municipality: | ||||||
7 | (1) in fiscal year 2016, one-third of the total amount | ||||||
8 | of any payments of State funds to the municipality; | ||||||
9 | (2) in fiscal year 2017, two-thirds of the total amount | ||||||
10 | of any payments of State funds to the municipality; and | ||||||
11 | (3) in fiscal year 2018 and each fiscal year | ||||||
12 | thereafter, the total amount of any payments of State funds | ||||||
13 | to the municipality. | ||||||
14 | The State Comptroller may not deduct from any payments of | ||||||
15 | State funds to the municipality more than the amount of | ||||||
16 | delinquent payments certified to the State Comptroller by the | ||||||
17 | fund. | ||||||
18 | (c) The board shall make available to the membership and | ||||||
19 | the general public
for inspection and copying at reasonable | ||||||
20 | times the most recent Actuarial
Valuation Balance Sheet and Tax | ||||||
21 | Levy Requirement issued to the fund by the
Department of | ||||||
22 | Insurance.
| ||||||
23 | (d) The firefighters' pension fund shall consist of the | ||||||
24 | following moneys
which shall be set apart by the treasurer of | ||||||
25 | the municipality: (1) all
moneys derived from the taxes levied | ||||||
26 | hereunder; (2) contributions
by firefighters as provided under |
| |||||||
| |||||||
1 | Section 4-118.1; (3) all
rewards in money, fees, gifts, and | ||||||
2 | emoluments that may be paid or given
for or on account of | ||||||
3 | extraordinary service by the fire department or any
member | ||||||
4 | thereof, except when allowed to be retained by competitive | ||||||
5 | awards;
and (4) any money, real estate or personal property | ||||||
6 | received by the board.
| ||||||
7 | (e) For the purposes of this Section, "enrolled actuary" | ||||||
8 | means an actuary:
(1) who is a member of the Society of | ||||||
9 | Actuaries or the American
Academy of Actuaries; and (2) who is | ||||||
10 | enrolled under Subtitle
C of Title III of the Employee | ||||||
11 | Retirement Income Security Act of 1974, or
who has been engaged | ||||||
12 | in providing actuarial services to one or more public
| ||||||
13 | retirement systems for a period of at least 3 years as of July | ||||||
14 | 1, 1983.
| ||||||
15 | (f) The corporate authorities of a municipality that | ||||||
16 | employs a person
who is described in subdivision (d) of Section | ||||||
17 | 4-106 may add to the tax levy
otherwise provided for in this | ||||||
18 | Section an amount equal to the projected cost of
the employer | ||||||
19 | contributions required to be paid by the municipality to the | ||||||
20 | State
Universities Retirement System under subsection (b-1) of | ||||||
21 | Section 15-155 of this
Code. | ||||||
22 | (g) The Commission on Government Forecasting and
| ||||||
23 | Accountability shall conduct a study of all funds established
| ||||||
24 | under this Article and shall report its findings to the General
| ||||||
25 | Assembly on or before January 1, 2013. To the fullest extent | ||||||
26 | possible, the study shall include, but not be limited to, the |
| |||||||
| |||||||
1 | following: | ||||||
2 | (1) fund balances; | ||||||
3 | (2) historical employer contribution rates for each
| ||||||
4 | fund; | ||||||
5 | (3) the actuarial formulas used as a basis for employer
| ||||||
6 | contributions, including the actual assumed rate of return
| ||||||
7 | for each year, for each fund; | ||||||
8 | (4) available contribution funding sources; | ||||||
9 | (5) the impact of any revenue limitations caused by
| ||||||
10 | PTELL and employer home rule or non-home rule status; and | ||||||
11 | (6) existing statutory funding compliance procedures
| ||||||
12 | and funding enforcement mechanisms for all municipal
| ||||||
13 | pension funds.
| ||||||
14 | (Source: P.A. 99-8, eff. 7-9-15.)
| ||||||
15 | (40 ILCS 5/4-120) (from Ch. 108 1/2, par. 4-120)
| ||||||
16 | Sec. 4-120. Reserves. | ||||||
17 | (a) The board shall establish and maintain a reserve to | ||||||
18 | insure the payment
of all obligations incurred under this | ||||||
19 | Article. The reserve to be accumulated
shall be equal to the | ||||||
20 | estimated total actuarial requirements of the Fund.
| ||||||
21 | (b) In the case of an eligible pension fund that has | ||||||
22 | transferred its investment authority to the Downstate | ||||||
23 | Firefighter Pension Investment Board under Section 1-113.05 of | ||||||
24 | this Code, the assets invested by the Downstate Firefighter | ||||||
25 | Pension Investment Board on behalf of the pension fund, and the |
| |||||||
| |||||||
1 | dividends and other investment earnings attributable thereto, | ||||||
2 | shall be considered as part of the reserve for the purposes of | ||||||
3 | this Section. | ||||||
4 | The Downstate Firefighter Pension Investment Board shall | ||||||
5 | report to the board of each such fund at least annually the | ||||||
6 | financial information on the invested assets and earnings to | ||||||
7 | that pension fund so that the board may make the determinations | ||||||
8 | required under this Article. | ||||||
9 | (Source: P.A. 83-1440.)
| ||||||
10 | (40 ILCS 5/4-123) (from Ch. 108 1/2, par. 4-123)
| ||||||
11 | Sec. 4-123. To control and manage the Pension Fund. | ||||||
12 | (a) In accordance with the
applicable provisions of | ||||||
13 | Articles 1 and 1A and this Article the board of trustees of the | ||||||
14 | pension fund shall have the authority , to control and
manage, | ||||||
15 | exclusively, the following:
| ||||||
16 | (1) the pension fund, and
| ||||||
17 | (2) investment expenditures and income, including | ||||||
18 | interest dividends,
capital gains, and other distributions | ||||||
19 | on the investments, and
| ||||||
20 | (2) (3) all money donated, paid, assessed, or provided | ||||||
21 | by law for the
pensioning of disabled and retired | ||||||
22 | firefighters, their surviving spouses,
minor children, and | ||||||
23 | dependent parents. All such money received or collected | ||||||
24 | shall be credited by the treasurer of the
municipality to | ||||||
25 | the custodian's account of the pension fund and held by the |
| |||||||
| |||||||
1 | custodian for purposes of investment pursuant to Article | ||||||
2 | 22C of this Code. | ||||||
3 | (b) Pursuant to rules adopted under Article 22C of this | ||||||
4 | Code, the board of trustees of an eligible pension fund shall | ||||||
5 | make periodic written application to the Downstate Firefighter | ||||||
6 | Pension Investment Board for receipt and deposit of reserves | ||||||
7 | into the pension fund. Reserves in the amount of 3 months' | ||||||
8 | current liabilities, including annuity and benefit payments | ||||||
9 | and operational expenses owed by the fund, shall be held by the | ||||||
10 | treasurer of
the municipality subject to the order and control | ||||||
11 | of the board. The treasurer
of the municipality shall maintain | ||||||
12 | a record of all money received, transferred,
and held for the | ||||||
13 | account of the board.
| ||||||
14 | (c) In case of any dispute that may arise between the board | ||||||
15 | of trustees of any eligible pension fund and the Downstate | ||||||
16 | Firefighter Pension Investment Board pursuant to subsection | ||||||
17 | (b) of this Section, the board of trustees of the pension fund | ||||||
18 | shall appeal the dispute to the Director of Insurance. If the | ||||||
19 | Director finds good faith dispute between the parties, the | ||||||
20 | Director may hold a hearing in accordance with the rules of the | ||||||
21 | Department of Insurance. | ||||||
22 | (Source: P.A. 90-507, eff. 8-22-97.)
| ||||||
23 | (40 ILCS 5/4-128) (from Ch. 108 1/2, par. 4-128)
| ||||||
24 | Sec. 4-128. To invest and transfer funds. | ||||||
25 | (a) Except as provided in subsection (b), Beginning January |
| |||||||
| |||||||
1 | 1, 1998, the board shall
invest funds in accordance with | ||||||
2 | Sections 1-113.1 through 1-113.10 of this
Code.
| ||||||
3 | Any pension fund that is not an eligible pension fund as | ||||||
4 | defined in Section 1-101.6 of this Code shall retain the | ||||||
5 | authority to control and manage investment expenditures and | ||||||
6 | income, including interest, dividends, capital gains, and | ||||||
7 | other distributions on the investments. | ||||||
8 | (b) The board of an eligible pension fund that receives a | ||||||
9 | certified investment asset list under Section 4-128.1 shall | ||||||
10 | cease investment activities upon receiving the certified | ||||||
11 | investment asset list and shall transfer all investment assets, | ||||||
12 | minus assets needed to comply with subsection (b) of Section | ||||||
13 | 4-123, to the Downstate Firefighter Pension Investment Board in | ||||||
14 | the manner prescribed by rules adopted by the Downstate | ||||||
15 | Firefighter Pension Investment Board under Article 22C. Upon | ||||||
16 | completion of the transfer described in this subsection, the | ||||||
17 | investment authority of the board shall terminate. | ||||||
18 | (Source: P.A. 90-507, eff. 8-22-97.)
| ||||||
19 | (40 ILCS 5/4-128.1 new) | ||||||
20 | Sec. 4-128.1. Certified investment asset list. | ||||||
21 | (a) Within 18 months of the effective date of this | ||||||
22 | amendatory Act of the 100th General Assembly, the Department of | ||||||
23 | Insurance shall audit the investment assets of each eligible | ||||||
24 | pension fund established under this Article to determine a | ||||||
25 | certified investment asset list. The audit shall be performed |
| |||||||
| |||||||
1 | by a certified public accountant. The board of the pension fund | ||||||
2 | shall defray the expense of the audit. | ||||||
3 | (b) Upon completion of the audit, the Department of | ||||||
4 | Insurance shall provide the certified investment asset list to | ||||||
5 | the eligible pension fund and the Downstate Firefighter Pension | ||||||
6 | Investment Board. The Department of Insurance may adopt rules | ||||||
7 | governing the creation and distribution of the certified | ||||||
8 | investment asset list.
| ||||||
9 | (40 ILCS 5/4-128.2 new) | ||||||
10 | Sec. 4-128.2. To transfer investment funds. At each | ||||||
11 | quarterly meeting of the board, the board of trustees of any | ||||||
12 | eligible pension fund shall transfer any available funds for | ||||||
13 | investment to the Downstate Firefighter Pension Investment | ||||||
14 | Board in accordance with provisions of Article 22C of this | ||||||
15 | Code. Each transfer shall be made within 30 days of the end of | ||||||
16 | the fiscal year quarter and written notice of the transfer | ||||||
17 | shall be given to the Downstate Firefighter Pension Investment | ||||||
18 | Board.
| ||||||
19 | (40 ILCS 5/Art. 22B heading new) | ||||||
20 | ARTICLE 22B. DOWNSTATE POLICE PENSION INVESTMENT BOARD | ||||||
21 | (40 ILCS 5/22B-101 new) | ||||||
22 | Sec. 22B-101. Establishment. The Downstate Police Pension | ||||||
23 | Investment Board is created with authority to manage, invest, |
| |||||||
| |||||||
1 | and reinvest the reserves, funds, assets, securities, and | ||||||
2 | moneys of any pension fund, as provided in this Article, and to | ||||||
3 | perform such other duties as may from time to time be | ||||||
4 | authorized by the General Assembly.
| ||||||
5 | (40 ILCS 5/22B-102 new) | ||||||
6 | Sec. 22B-102. Definitions. For the purposes of this | ||||||
7 | Article, the following words and phrases shall have the meaning | ||||||
8 | ascribed to them unless the context requires otherwise.
| ||||||
9 | (40 ILCS 5/22B-103 new) | ||||||
10 | Sec. 22B-103. Board. "Board": The Downstate Police Pension | ||||||
11 | Investment Board.
| ||||||
12 | (40 ILCS 5/22B-105 new) | ||||||
13 | Sec. 22B-105. Pension fund. "Pension fund": A pension fund | ||||||
14 | established under Article 3 of this Code, including the | ||||||
15 | reserves, funds, assets, securities, moneys, and property of | ||||||
16 | the pension fund.
| ||||||
17 | (40 ILCS 5/22B-106 new) | ||||||
18 | Sec. 22B-106. Manage. "Manage": To invest, reinvest, | ||||||
19 | exchange, and perform all investment functions with regard to | ||||||
20 | reserves, funds, assets, securities, and moneys that the board | ||||||
21 | is authorized to invest; and to preserve and protect such | ||||||
22 | reserves, funds, assets, securities, and moneys, including, |
| |||||||
| |||||||
1 | but not limited to, authority to vote any stocks, bonds, or | ||||||
2 | other securities and to give general or special proxies or | ||||||
3 | powers of attorney with or without power of substitution. | ||||||
4 | "Manage" does not include any functions, duties, or | ||||||
5 | responsibilities incident to the operation and administration | ||||||
6 | of pension funds other than that of investments.
| ||||||
7 | (40 ILCS 5/22B-107 new) | ||||||
8 | Sec. 22B-107. Invest. "Invest": To acquire, invest, | ||||||
9 | reinvest, exchange, or retain property held for a pension fund | ||||||
10 | and to sell and manage the reserves, funds, securities, moneys, | ||||||
11 | or assets of any pension fund in accordance with this Article.
| ||||||
12 | (40 ILCS 5/22B-108 new) | ||||||
13 | Sec. 22B-108. Investment. "Investment": Any property | ||||||
14 | acquired by the board for a pension fund.
| ||||||
15 | (40 ILCS 5/22B-108.1 new) | ||||||
16 | Sec. 22B-108.1. Investment advisor. "Investment advisor": | ||||||
17 | Any person or business entity that provides investment advice | ||||||
18 | to the board on a personalized basis and with an understanding | ||||||
19 | of the policies and goals of the board. "Investment advisor" | ||||||
20 | does not include any person or business entity that provides | ||||||
21 | statistical or general market research data available for | ||||||
22 | purchase or use by others.
|
| |||||||
| |||||||
1 | (40 ILCS 5/22B-109 new) | ||||||
2 | Sec. 22B-109. Membership of board. The board shall consist | ||||||
3 | of the following members: | ||||||
4 | (1) Two trustees who are active participants of a | ||||||
5 | police pension fund under Article 3, elected by the active | ||||||
6 | participants of the police pension funds. | ||||||
7 | (2) Two trustees who are beneficiaries of a police | ||||||
8 | pension fund under Article 3, elected by the beneficiaries | ||||||
9 | of the police pension funds. | ||||||
10 | (3) Four trustees who are mayors or presidents of | ||||||
11 | boards of trustees of municipalities, as defined in Section | ||||||
12 | 3-103, elected by the mayors and presidents of boards of | ||||||
13 | trustees of municipalities. | ||||||
14 | The members shall serve for terms of 4 years, except that | ||||||
15 | the terms of office of the original members pursuant to this | ||||||
16 | amendatory Act of the 100th General Assembly shall be as | ||||||
17 | follows: 2 members, determined by lot, for a term of 1 year; 2 | ||||||
18 | members, determined by lot, for a term of 2 years; 2 members, | ||||||
19 | determined by lot, for a term of 3 years; and 2 members, | ||||||
20 | determined by lot, for a term of 4 years. If there is a vacancy | ||||||
21 | among the members, the vacancy shall be filled for the | ||||||
22 | remainder of the unexpired term by a special election, to be | ||||||
23 | called by the board and conducted in the same manner as the | ||||||
24 | regular election. | ||||||
25 | The active police pension fund participants shall be | ||||||
26 | entitled to vote only for the members of the board who are |
| |||||||
| |||||||
1 | active police pension fund participants. Beneficiaries of | ||||||
2 | legal age may vote only for the members of the board who are | ||||||
3 | police pension fund beneficiaries. No person shall be entitled | ||||||
4 | to cast more than one ballot at such election. | ||||||
5 | Mayors and presidents of boards of trustees of | ||||||
6 | municipalities shall be entitled to vote only for the members | ||||||
7 | who are mayors or presidents of boards of trustees of | ||||||
8 | municipalities. | ||||||
9 | Each person elected to membership shall qualify by taking | ||||||
10 | an oath of office before the Secretary of State stating that he | ||||||
11 | or she will diligently and honestly administer the affairs of | ||||||
12 | the board and will not violate or knowingly permit the | ||||||
13 | violation of any provisions of this Article. | ||||||
14 | Members of the board shall receive no salary for service on | ||||||
15 | the board, but shall be reimbursed for travel expenses incurred | ||||||
16 | while on business for the board according to the standards in | ||||||
17 | effect for members of the Illinois Legislative Research Unit. | ||||||
18 | A majority of the members of the board shall constitute a | ||||||
19 | quorum. The board shall elect from its membership, biennially, | ||||||
20 | a chairperson, vice chairperson, and a recording secretary. | ||||||
21 | These officers, together with one other member elected by the | ||||||
22 | board, shall constitute the executive committee. During the | ||||||
23 | interim between regular meetings of the board, the executive | ||||||
24 | committee shall have authority to conduct all business of the | ||||||
25 | board and shall report such business conducted at the next | ||||||
26 | following meeting of the board for ratification. |
| |||||||
| |||||||
1 | No member of the board shall have any interest in any | ||||||
2 | brokerage fee, commission, or other profit or gain arising out | ||||||
3 | of any investment made by the board. This paragraph does not | ||||||
4 | preclude ownership by any member of any minority interest in | ||||||
5 | any common stock or any corporate obligation in which | ||||||
6 | investment is made by the board. | ||||||
7 | The board shall contract for a blanket fidelity bond in the | ||||||
8 | penal sum of not less than $1,000,000 to cover members of the | ||||||
9 | board, the director, and all other employees of the board | ||||||
10 | conditioned for the faithful performance of the duties of their | ||||||
11 | respective offices, the premium on which shall be paid by the | ||||||
12 | board.
| ||||||
13 | (40 ILCS 5/22B-110 new) | ||||||
14 | Sec. 22B-110. Administration. | ||||||
15 | (a) The board shall appoint a director to administer the | ||||||
16 | affairs of the board subject to and under its supervision and | ||||||
17 | fix his or her compensation. The board may appoint investment | ||||||
18 | officers and fix their compensation. With the approval of the | ||||||
19 | board, the director may employ such personnel, professional or | ||||||
20 | clerical, as may be desirable and fix their compensation. The | ||||||
21 | appointment and compensation of the personnel other than the | ||||||
22 | director and investment officers shall be subject to the | ||||||
23 | Personnel Code. | ||||||
24 | (b) The board may adopt such rules and regulations (not | ||||||
25 | inconsistent with this Article) as in its judgment are |
| |||||||
| |||||||
1 | desirable to implement and properly administer this Article. A | ||||||
2 | copy thereof shall be filed with the Secretary of State. | ||||||
3 | (c) The board may exercise any of the powers granted to | ||||||
4 | boards of trustees of pension funds under Sections 1-107 or | ||||||
5 | 1-108 and may by resolution provide for the indemnification of | ||||||
6 | its members and any of its directors, officers, advisors, or | ||||||
7 | employees in a manner consistent with those Sections. | ||||||
8 | (d) An office for meetings of the board and for | ||||||
9 | administrative personnel shall be established at any suitable | ||||||
10 | place within the State as may be selected by the board. All | ||||||
11 | books and records of the board shall be kept in such office.
| ||||||
12 | (40 ILCS 5/22B-111 new) | ||||||
13 | Sec. 22B-111. Management of investments. | ||||||
14 | (a) The board shall manage the investments of each pension | ||||||
15 | fund for the purpose of obtaining a total return on investments | ||||||
16 | for the long term. The Board also shall perform such other | ||||||
17 | functions as may be assigned or directed by the General | ||||||
18 | Assembly. | ||||||
19 | (b) The authority of the board to manage pension fund | ||||||
20 | investments and the liability of the board shall begin when | ||||||
21 | there has been a physical transfer of the pension fund | ||||||
22 | investments to the board and placed in the custody of the | ||||||
23 | board's custodian. | ||||||
24 | (c) The board may not delegate its management functions, | ||||||
25 | but it may, but is not required to, arrange to compensate for |
| |||||||
| |||||||
1 | personalized investment advisory service for any or all | ||||||
2 | investments under its control with any national or state bank | ||||||
3 | or trust company authorized to do a trust business and | ||||||
4 | domiciled in Illinois, other financial institution organized | ||||||
5 | under the laws of Illinois, or an investment advisor who is | ||||||
6 | qualified under the Federal Investment Advisers Act of 1940 and | ||||||
7 | is registered under the Illinois Securities Law of 1953. | ||||||
8 | Nothing contained in this Article shall prevent the board from | ||||||
9 | subscribing to general investment research services available | ||||||
10 | for purchase or use by others. The board shall also have the | ||||||
11 | authority to compensate for accounting services. | ||||||
12 | (d) This Section does not prohibit the board from directly | ||||||
13 | investing pension assets in public market investments, private | ||||||
14 | investments, real estate investments, or other investments | ||||||
15 | authorized by this Code.
| ||||||
16 | (40 ILCS 5/22B-112 new) | ||||||
17 | Sec. 22B-112. Investment authority. The board shall have | ||||||
18 | the authority to invest funds, subject to the requirements and | ||||||
19 | restrictions set forth in Sections 1-109, 1-109.1, 1-109.2, | ||||||
20 | 1-110, 1-111, 1-114, and 1-115 of this Code. | ||||||
21 | No bank or savings and loan association shall receive | ||||||
22 | investment funds as permitted by this Section, unless it has | ||||||
23 | complied with the requirements established pursuant to Section | ||||||
24 | 6 of the Public Funds Investment Act. The limitations set forth | ||||||
25 | in that Section 6 shall be applicable only at the time of |
| |||||||
| |||||||
1 | investment and shall not require the liquidation of any | ||||||
2 | investment at any time. | ||||||
3 | The board shall have the authority to enter into such | ||||||
4 | agreements and to execute such documents as it determines to be | ||||||
5 | necessary to complete any investment transaction. | ||||||
6 | All investments shall be clearly held and accounted for to | ||||||
7 | indicate ownership by the board. The board may direct the | ||||||
8 | registration of securities in its own name or in the name of a | ||||||
9 | nominee created for the express purpose of registration of | ||||||
10 | securities by a national or state bank or trust company | ||||||
11 | authorized to conduct a trust business in the State of | ||||||
12 | Illinois. | ||||||
13 | Investments shall be carried at cost or at a value | ||||||
14 | determined in accordance with generally accepted accounting | ||||||
15 | principles and accounting procedures approved by the board. | ||||||
16 | The value of investments held by any pension fund in one or | ||||||
17 | more commingled investment accounts shall be determined in | ||||||
18 | accordance with generally accepted accounting principles.
| ||||||
19 | (40 ILCS 5/22B-113 new) | ||||||
20 | Sec. 22B-113. Transfer of securities and investment | ||||||
21 | functions. | ||||||
22 | (a) As soon as practicable following the receipt of a | ||||||
23 | certified investment asset list provided under Section | ||||||
24 | 3-135.1, the trustees of each pension fund shall transfer to | ||||||
25 | the Downstate Police Pension Investment Board for management |
| |||||||
| |||||||
1 | and investment all of their securities, including those for | ||||||
2 | which commitments have been made, and all funds, assets, or | ||||||
3 | moneys representing permanent or temporary investments, or | ||||||
4 | cash reserves maintained for the purpose of obtaining income | ||||||
5 | thereon. | ||||||
6 | (b) Prior to the transfer, the trustees of each pension | ||||||
7 | fund shall provide for completion of an audit by a certified | ||||||
8 | public accountant of the securities and other assets of the | ||||||
9 | pension fund, as directed and approved by the Downstate Police | ||||||
10 | Pension Investment Board, the expense of which shall be assumed | ||||||
11 | by the
pension fund. Upon such transfer, the authority of the | ||||||
12 | Downstate Police Pension Investment Board with respect to the | ||||||
13 | pension fund is effective. These transfers shall be receipted | ||||||
14 | for in detail by the chairperson and director of the board.
| ||||||
15 | (40 ILCS 5/22B-113.1 new) | ||||||
16 | Sec. 22B-113.1. Report of investable funds. Each pension | ||||||
17 | fund shall report to the board from time to time the amounts of | ||||||
18 | funds available for investment. These amounts shall be | ||||||
19 | transferred as soon as practical to the board's custodian or | ||||||
20 | the custodian's authorized agent for the account of the board | ||||||
21 | to be applied for investment by the board. Notice of each | ||||||
22 | transfer shall be given by the pension fund as the transfer | ||||||
23 | occurs.
| ||||||
24 | (40 ILCS 5/22B-113.2 new) |
| |||||||
| |||||||
1 | Sec. 22B-113.2. Custodian. | ||||||
2 | (a) The securities, funds, and other assets transferred to | ||||||
3 | the Downstate Police Pension Investment Board or otherwise | ||||||
4 | acquired by the board shall be placed in the custody of the | ||||||
5 | board's custodian. The custodian shall provide adequate safe | ||||||
6 | deposit facilities therefor and hold all such securities, | ||||||
7 | funds, and other assets subject to the order of the board. | ||||||
8 | (b) As soon as may be practicable, the board shall appoint | ||||||
9 | and retain a qualified custodian. Until a custodian has been | ||||||
10 | appointed by the board, the State Treasurer shall serve as | ||||||
11 | official custodian of the board. | ||||||
12 | (c) The custodian shall furnish a corporate surety bond of | ||||||
13 | such amount as the board designates. The bond shall indemnify | ||||||
14 | the board against any loss that may result from any action or | ||||||
15 | failure to act by the custodian or any of the custodian's | ||||||
16 | agents. All charges incidental to the procuring and giving of | ||||||
17 | such bond shall be paid by the board. The bond shall be in the | ||||||
18 | custody of the board.
| ||||||
19 | (40 ILCS 5/22B-113.3 new) | ||||||
20 | Sec. 22B-113.3. Transfer from eligible pension funds. | ||||||
21 | (a) Upon receipt of a certified investment asset list | ||||||
22 | provided under Section 3-135.1 of this Code for an eligible | ||||||
23 | pension fund, the Downstate Police Pension Investment Board | ||||||
24 | shall, as soon as practicable, initiate the transfer of assets | ||||||
25 | from the board of trustees of that fund, and the board of that |
| |||||||
| |||||||
1 | fund shall transfer to the Downstate Police Pension Investment | ||||||
2 | Board for management and investment all of its securities | ||||||
3 | including securities for which commitments have been made, and | ||||||
4 | all funds, assets, moneys representing permanent or temporary | ||||||
5 | investments, and cash reserves maintained for the purpose of | ||||||
6 | obtaining income thereon. | ||||||
7 | (b) Upon the transfer of securities and assets from a board | ||||||
8 | of trustees under this Section, the custody and control of the | ||||||
9 | Downstate Police Pension Investment Board over the present and | ||||||
10 | future assets of the pension fund shall take effect. The | ||||||
11 | transfer shall be receipted for in detail by the Downstate | ||||||
12 | Police Pension Investment Board and the receipt shall be | ||||||
13 | provided to the board of trustees of the pension fund within 30 | ||||||
14 | days of the effective date of the transfer.
| ||||||
15 | (40 ILCS 5/22B-114 new) | ||||||
16 | Sec. 22B-114. Accounting. In the management of pension fund | ||||||
17 | investments, the board: | ||||||
18 | (1) may, for investment purposes, commingle all or a | ||||||
19 | part of the invested assets of one or more pension funds | ||||||
20 | under its jurisdiction and authority; | ||||||
21 | (2) shall carry assets of all funds at cost or a value | ||||||
22 | determined in accordance with generally accepted | ||||||
23 | accounting principles and accounting procedures approved | ||||||
24 | by the board. Each investment initially transferred to the | ||||||
25 | board by a pension fund shall be similarly valued except |
| |||||||
| |||||||
1 | that the board may elect to place such value on any | ||||||
2 | investment conditionally in which case the amount of any | ||||||
3 | later realization of such asset in cash that is in excess | ||||||
4 | of or is less than the amount so credited shall be credited | ||||||
5 | or charged to the fund that made the transfer; | ||||||
6 | (3) shall keep proper books of account which shall | ||||||
7 | reflect at all times the value of all investments held by | ||||||
8 | the board for a pension fund whether for the separate | ||||||
9 | account of the fund or in a commingled fund; | ||||||
10 | (4) shall charge each pension fund with its share of | ||||||
11 | all expenses of the board at quarter-yearly periods pro | ||||||
12 | rata according to the value of the investments held for the | ||||||
13 | respective funds at the beginning of the quarter or any | ||||||
14 | other equitable formula; and | ||||||
15 | (5) shall charge all distributions made by the board to | ||||||
16 | or for a pension fund to the account maintained for that | ||||||
17 | fund.
| ||||||
18 | (40 ILCS 5/22B-115 new) | ||||||
19 | Sec. 22B-115. Audits and reports. | ||||||
20 | (a) At least annually, the books, records, accounts, and | ||||||
21 | securities of the board shall be audited by a certified public | ||||||
22 | accountant designated by the Auditor General of the State. The | ||||||
23 | audit opinion shall be published as a part of the annual report | ||||||
24 | of the board. | ||||||
25 | (b) For the quarterly periods ending September 30, December |
| |||||||
| |||||||
1 | 31, and March 31, the board shall submit to each pension fund | ||||||
2 | under its jurisdiction a report containing, among other things, | ||||||
3 | the following information: | ||||||
4 | (1) a full description of the investments acquired, | ||||||
5 | showing average costs; | ||||||
6 | (2) a full description of the securities sold or | ||||||
7 | exchanged, showing average proceeds or other conditions of | ||||||
8 | an exchange; | ||||||
9 | (3) gains or losses realized during the period; | ||||||
10 | (4) income from investments; | ||||||
11 | (5) administrative expenses of the board; and | ||||||
12 | (6) the proportion of administrative expenses | ||||||
13 | allocable to each pension fund. | ||||||
14 | (c) An annual report shall be prepared by the board for | ||||||
15 | submission to each pension fund under its jurisdiction within 6 | ||||||
16 | months after the close of each fiscal year. A fiscal year shall | ||||||
17 | date from July 1 of one year to June 30 of the year next | ||||||
18 | following. This report shall contain full information | ||||||
19 | concerning the results of investment operations of the board | ||||||
20 | for the year, the information required under subsections (a) | ||||||
21 | and (b), and the following information: | ||||||
22 | (1) a listing of the investments held by the board as | ||||||
23 | at the end of the year showing their book values and market | ||||||
24 | values and their income yields on market values; | ||||||
25 | (2) the amounts as determined under item (1) of | ||||||
26 | subsection (b) allocable to each pension fund managed by |
| |||||||
| |||||||
1 | the board; | ||||||
2 | (3) comments on the pertinent factors affecting the | ||||||
3 | operations of the board for the year; | ||||||
4 | (4) a review of the policies maintained by the board | ||||||
5 | and any changes therein that occurred during the year; | ||||||
6 | (5) a copy of the audited financial statements for the | ||||||
7 | year; | ||||||
8 | (6) recommendations for possible changes in the law | ||||||
9 | governing the operations of the board; and | ||||||
10 | (7) a listing of the names of securities brokers and | ||||||
11 | dealers dealt with during the year showing the total amount | ||||||
12 | of commissions received by each on transactions with the | ||||||
13 | board.
| ||||||
14 | (40 ILCS 5/22B-115.5 new) | ||||||
15 | Sec. 22B-115.5. Audit of transition. Within 6 months after | ||||||
16 | the transfer of investment assets from an eligible pension fund | ||||||
17 | established under Article 3 of this Code to the control of the | ||||||
18 | Board, the books, records, accounts, and securities of the | ||||||
19 | board shall be audited by a certified public accountant | ||||||
20 | designated by the Illinois Auditor General. The audit shall | ||||||
21 | include, but is not limited to, the following: | ||||||
22 | (i) a full description of the investments acquired, | ||||||
23 | showing average costs; | ||||||
24 | (ii) a full description of the securities sold or | ||||||
25 | exchanged, showing average proceeds or other conditions of |
| |||||||
| |||||||
1 | an exchange; | ||||||
2 | (iii) gains or losses realized during the period; | ||||||
3 | (iv) income from investments; | ||||||
4 | (v) administrative expenses of the board; and | ||||||
5 | (vi) the proportion of administrative expenses | ||||||
6 | allocable to each pension fund. | ||||||
7 | The audit report shall be published on the board's website | ||||||
8 | and filed with the Department of Insurance.
| ||||||
9 | (40 ILCS 5/Art. 22C heading new) | ||||||
10 | ARTICLE 22C. DOWNSTATE FIREFIGHTER PENSION INVESTMENT BOARD | ||||||
11 | (40 ILCS 5/22C-101 new) | ||||||
12 | Sec. 22C-101. Establishment. The Downstate Firefighter | ||||||
13 | Pension Investment Board is created with authority to manage, | ||||||
14 | invest, and reinvest the reserves, funds, assets, securities, | ||||||
15 | and moneys of any pension fund, as provided in this Article and | ||||||
16 | to perform such other duties as may from time to time be | ||||||
17 | authorized by the General Assembly.
| ||||||
18 | (40 ILCS 5/22C-102 new) | ||||||
19 | Sec. 22C-102. Definitions. For the purposes of this | ||||||
20 | Article, the following words and phrases shall have the meaning | ||||||
21 | ascribed to them unless the context requires otherwise.
| ||||||
22 | (40 ILCS 5/22C-103 new) |
| |||||||
| |||||||
1 | Sec. 22C-103. Board. "Board": The Downstate Firefighter | ||||||
2 | Pension Investment Board.
| ||||||
3 | (40 ILCS 5/22C-105 new) | ||||||
4 | Sec. 22C-105. Pension fund. "Pension fund": A pension fund | ||||||
5 | established under Article 4 of this Code, including the | ||||||
6 | reserves, funds, assets, securities, moneys, and property of | ||||||
7 | any pension fund or retirement system.
| ||||||
8 | (40 ILCS 5/22C-106 new) | ||||||
9 | Sec. 22C-106. Manage. "Manage": To invest, reinvest, | ||||||
10 | exchange, and perform all investment functions with regard to | ||||||
11 | reserves, funds, assets, securities, and moneys that the board | ||||||
12 | is authorized to invest; and to preserve and protect such | ||||||
13 | reserves, funds, assets, securities, and moneys, including, | ||||||
14 | but not limited to, authority to vote any stocks, bonds, or | ||||||
15 | other securities and to give general or special proxies or | ||||||
16 | powers of attorney with or without power of substitution. | ||||||
17 | "Manage" does not include any functions, duties, or | ||||||
18 | responsibilities incident to the operation and administration | ||||||
19 | of pension funds other than that of investments.
| ||||||
20 | (40 ILCS 5/22C-107 new) | ||||||
21 | Sec. 22C-107. Invest. "Invest": To acquire, invest, | ||||||
22 | reinvest, exchange, or retain property held for a pension fund | ||||||
23 | and to sell and manage the reserves, funds, securities, moneys, |
| |||||||
| |||||||
1 | or assets of any pension fund in accordance with this Article.
| ||||||
2 | (40 ILCS 5/22C-108 new) | ||||||
3 | Sec. 22C-108. Investment. "Investment": Any property | ||||||
4 | acquired by the board for a pension fund.
| ||||||
5 | (40 ILCS 5/22C-108.1 new) | ||||||
6 | Sec. 22C-108.1. Investment advisor. "Investment advisor": | ||||||
7 | Any person or business entity that provides investment advice | ||||||
8 | to the board on a personalized basis and with an understanding | ||||||
9 | of the policies and goals of the board. "Investment advisor" | ||||||
10 | does not include any person or business entity that provides | ||||||
11 | statistical or general market research data available for | ||||||
12 | purchase or use by others.
| ||||||
13 | (40 ILCS 5/22C-109 new) | ||||||
14 | Sec. 22C-109. Membership of board. The board shall consist | ||||||
15 | of the following members: | ||||||
16 | (1) Two trustees who are active participants of a | ||||||
17 | firefighter pension fund under Article 4, elected by the | ||||||
18 | active participants of the firefighter pension funds. | ||||||
19 | (2) Two trustees who are beneficiaries of a firefighter | ||||||
20 | pension fund under Article 4, elected by the beneficiaries | ||||||
21 | of the firefighter pension funds. | ||||||
22 | (3) Four trustees who are mayors or presidents of | ||||||
23 | boards of trustees of municipalities, as defined in Section |
| |||||||
| |||||||
1 | 4-103, elected by the mayors and presidents of boards of | ||||||
2 | trustees of municipalities. | ||||||
3 | The members shall serve for terms of 4 years, except that | ||||||
4 | the terms of office of the original members pursuant to this | ||||||
5 | amendatory Act of the 100th General Assembly shall be as | ||||||
6 | follows: 2 members, determined by lot, for a term of 1 year; 2 | ||||||
7 | members, determined by lot, for a term of 2 years; 2 members, | ||||||
8 | determined by lot, for a term of 3 years; and 2 members, | ||||||
9 | determined by lot, for a term of 4 years. If there is a vacancy | ||||||
10 | among the members, the vacancy shall be filled for the | ||||||
11 | remainder of the unexpired term by a special election, to be | ||||||
12 | called by the board and conducted in the same manner as the | ||||||
13 | regular election. | ||||||
14 | The active firefighter pension fund participants shall be | ||||||
15 | entitled to vote only for the members of the board who are | ||||||
16 | active firefighter pension fund participants. Beneficiaries of | ||||||
17 | legal age may vote only for the members of the board who are | ||||||
18 | firefighter pension fund beneficiaries. No person shall be | ||||||
19 | entitled to cast more than one ballot at such election. | ||||||
20 | Mayors and presidents of boards of trustees of
| ||||||
21 | municipalities shall be entitled to vote only for the members
| ||||||
22 | who are mayors or presidents of boards of trustees of
| ||||||
23 | municipalities. | ||||||
24 | Each person elected to membership shall qualify by taking | ||||||
25 | an oath of office before the Secretary of State stating that he | ||||||
26 | or she will diligently and honestly administer the affairs of |
| |||||||
| |||||||
1 | the board and will not violate or knowingly permit the | ||||||
2 | violation of any provisions of this Article. | ||||||
3 | Members of the board shall receive no salary for service on | ||||||
4 | the board but shall be reimbursed for travel expenses incurred | ||||||
5 | while on business for the board according to the standards in | ||||||
6 | effect for members of the Illinois Legislative Research Unit. | ||||||
7 | A majority of the members of the board shall constitute a | ||||||
8 | quorum. The board shall elect from its membership, biennially, | ||||||
9 | a chairperson, vice chairperson, and a recording secretary. | ||||||
10 | These officers, together with one other member elected by the | ||||||
11 | board, shall constitute the executive committee. During the | ||||||
12 | interim between regular meetings of the board, the executive | ||||||
13 | committee shall have authority to conduct all business of the | ||||||
14 | board and shall report such business conducted at the next | ||||||
15 | following meeting of the board for ratification. | ||||||
16 | No member of the board shall have any interest in any | ||||||
17 | brokerage fee, commission, or other profit or gain arising out | ||||||
18 | of any investment made by the board. This paragraph does not | ||||||
19 | preclude ownership by any member of any minority interest in | ||||||
20 | any common stock or any corporate obligation in which | ||||||
21 | investment is made by the board. | ||||||
22 | The board shall contract for a blanket fidelity bond in the | ||||||
23 | penal sum of not less than $1,000,000 to cover members of the | ||||||
24 | board, the director, and all other employees of the board | ||||||
25 | conditioned for the faithful performance of the duties of their | ||||||
26 | respective offices, the premium on which shall be paid by the |
| |||||||
| |||||||
1 | board.
| ||||||
2 | (40 ILCS 5/22C-110 new) | ||||||
3 | Sec. 22C-110. Administration. | ||||||
4 | (a) The board shall appoint a director to administer the | ||||||
5 | affairs of the board subject to and under its supervision and | ||||||
6 | fix his or her compensation. The board may appoint investment | ||||||
7 | officers and fix their compensation. With the approval of the | ||||||
8 | board, the director may employ such personnel, professional or | ||||||
9 | clerical, as may be desirable and fix their compensation. The | ||||||
10 | appointment and compensation of the personnel other than the | ||||||
11 | director and investment officers shall be subject to the | ||||||
12 | Personnel Code. | ||||||
13 | (b) The board may adopt such rules and regulations (not | ||||||
14 | inconsistent with this Article) as in its judgment are | ||||||
15 | desirable to implement and properly administer this Article. A | ||||||
16 | copy thereof shall be filed with the Secretary of State. | ||||||
17 | (c) The board may exercise any of the powers granted to | ||||||
18 | boards of trustees of pension funds under Sections 1-107 or | ||||||
19 | 1-108 and may by resolution provide for the indemnification of | ||||||
20 | its members and any of its directors, officers, advisors, or | ||||||
21 | employees in a manner consistent with those Sections. | ||||||
22 | (d) An office for meetings of the board and for | ||||||
23 | administrative personnel shall be established at any suitable | ||||||
24 | place within the State as may be selected by the board. All | ||||||
25 | books and records of the board shall be kept in such office.
|
| |||||||
| |||||||
1 | (40 ILCS 5/22C-111 new) | ||||||
2 | Sec. 22C-111. Management of investments. | ||||||
3 | (a) The board shall manage the investments of each pension | ||||||
4 | fund for the purpose of obtaining a total return on investments | ||||||
5 | for the long term. The board also shall perform such other | ||||||
6 | functions as may be assigned or directed by the General | ||||||
7 | Assembly. | ||||||
8 | (b) The authority of the board to manage pension fund | ||||||
9 | investments and the liability of the board shall begin when | ||||||
10 | there has been a physical transfer of the pension fund | ||||||
11 | investments to the board and placed in the custody of the | ||||||
12 | board's custodian. | ||||||
13 | (c) The board may not delegate its management functions, | ||||||
14 | but it may, but is not required to, arrange to compensate for | ||||||
15 | personalized investment advisory service for any or all | ||||||
16 | investments under its control with any national or state bank | ||||||
17 | or trust company authorized to do a trust business and | ||||||
18 | domiciled in Illinois, other financial institution organized | ||||||
19 | under the laws of Illinois, or an investment advisor who is | ||||||
20 | qualified under the Federal Investment Advisers Act of 1940 and | ||||||
21 | is registered under the Illinois Securities Law of 1953. | ||||||
22 | Nothing contained in this Article shall prevent the board from | ||||||
23 | subscribing to general investment research services available | ||||||
24 | for purchase or use by others. The board shall also have the | ||||||
25 | authority to compensate for accounting services. |
| |||||||
| |||||||
1 | (d) This Section does not prohibit the board from directly | ||||||
2 | investing pension assets in public market investments, private | ||||||
3 | investments, real estate investments, or other investments | ||||||
4 | authorized by this Code.
| ||||||
5 | (40 ILCS 5/22C-112 new) | ||||||
6 | Sec. 22C-112. Investment authority. The board shall have | ||||||
7 | the authority to invest funds, subject to the requirements and | ||||||
8 | restrictions set forth in Sections 1-109, 1-109.1, 1-109.2, | ||||||
9 | 1-110, 1-111, 1-114, and 1-115 of this Code. | ||||||
10 | No bank or savings and loan association shall receive | ||||||
11 | investment funds as permitted by this Section, unless it has | ||||||
12 | complied with the requirements established pursuant to Section | ||||||
13 | 6 of the Public Funds Investment Act. The limitations set forth | ||||||
14 | in that Section 6 shall be applicable only at the time of | ||||||
15 | investment and shall not require the liquidation of any | ||||||
16 | investment at any time. | ||||||
17 | The board shall have the authority to enter into such | ||||||
18 | agreements and to execute such documents as it determines to be | ||||||
19 | necessary to complete any investment transaction. | ||||||
20 | All investments shall be clearly held and accounted for to | ||||||
21 | indicate ownership by the board. The board may direct the | ||||||
22 | registration of securities in its own name or in the name of a | ||||||
23 | nominee created for the express purpose of registration of | ||||||
24 | securities by a national or state bank or trust company | ||||||
25 | authorized to conduct a trust business in the State of |
| |||||||
| |||||||
1 | Illinois. | ||||||
2 | Investments shall be carried at cost or at a value | ||||||
3 | determined in accordance with generally accepted accounting | ||||||
4 | principles and accounting procedures approved by the board. | ||||||
5 | The value of investments held by any pension fund in one or | ||||||
6 | more commingled investment accounts shall be determined in | ||||||
7 | accordance with generally accepted accounting principles.
| ||||||
8 | (40 ILCS 5/22C-113 new) | ||||||
9 | Sec. 22C-113. Transfer of securities and investment | ||||||
10 | functions. | ||||||
11 | (a) As soon as practicable following the receipt of a | ||||||
12 | certified investment asset list provided under Section | ||||||
13 | 4-128.1, the trustees of each pension fund shall transfer to | ||||||
14 | the Downstate Firefighter Pension Investment Board for | ||||||
15 | management and investment all of their securities, including | ||||||
16 | those for which commitments have been made, and all funds, | ||||||
17 | assets, or moneys representing permanent or temporary | ||||||
18 | investments, or cash reserves maintained for the purpose of | ||||||
19 | obtaining income thereon. | ||||||
20 | (b) Prior to the transfer, the trustees of each pension | ||||||
21 | fund shall provide for completion of an audit by a certified | ||||||
22 | public accountant of the securities and other assets of the | ||||||
23 | pension fund, as directed and approved by the Downstate | ||||||
24 | Firefighter Pension Investment Board, the expense of which | ||||||
25 | shall be assumed by the
pension fund. Upon such transfer, the |
| |||||||
| |||||||
1 | authority of the Downstate Firefighter Pension Investment | ||||||
2 | Board with respect to the pension fund is effective. These | ||||||
3 | transfers shall be receipted for in detail by the chairperson | ||||||
4 | and director of the board.
| ||||||
5 | (40 ILCS 5/22C-113.1 new) | ||||||
6 | Sec. 22C-113.1. Report of investable funds. Each pension | ||||||
7 | fund shall report to the board from time to time the amounts of | ||||||
8 | funds available for investment. These amounts shall be | ||||||
9 | transferred as soon as practical to the board's custodian or | ||||||
10 | the custodian's authorized agent for the account of the board | ||||||
11 | to be applied for investment by the board. Notice of each | ||||||
12 | transfer shall be given by the pension fund as the transfer | ||||||
13 | occurs.
| ||||||
14 | (40 ILCS 5/22C-113.2 new) | ||||||
15 | Sec. 22C-113.2. Custodian. | ||||||
16 | (a) The securities, funds, and other assets transferred to | ||||||
17 | the Downstate Firefighter Pension Investment Board or | ||||||
18 | otherwise acquired by the board shall be placed in the custody | ||||||
19 | of the board's custodian. The custodian shall provide adequate | ||||||
20 | safe deposit facilities therefor and hold all such securities, | ||||||
21 | funds, and other assets subject to the order of the board. | ||||||
22 | (b) As soon as may be practicable, the board shall appoint | ||||||
23 | and retain a qualified custodian. Until a custodian has been | ||||||
24 | appointed by the board, the State Treasurer shall serve as |
| |||||||
| |||||||
1 | official custodian of the board. | ||||||
2 | (c) The custodian shall furnish a corporate surety bond of | ||||||
3 | such amount as the board designates. The bond shall indemnify | ||||||
4 | the board against any loss that may result from any action or | ||||||
5 | failure to act by the custodian or any of the custodian's | ||||||
6 | agents. All charges incidental to the procuring and giving of | ||||||
7 | such bond shall be paid by the board. The bond shall be in the | ||||||
8 | custody of the board.
| ||||||
9 | (40 ILCS 5/22C-113.3 new) | ||||||
10 | Sec. 22C-113.3. Transfer from eligible pension funds. | ||||||
11 | (a) Upon receipt of a certified investment asset list | ||||||
12 | provided under Section 4-128.1 of this Code for an eligible | ||||||
13 | pension fund, the Downstate Firefighter Pension Investment | ||||||
14 | Board shall, as soon as practicable, initiate the transfer of | ||||||
15 | assets from the board of trustees of that fund, and the board | ||||||
16 | of that fund shall transfer to the Downstate Firefighter | ||||||
17 | Pension Investment Board for management and investment all of | ||||||
18 | its securities including securities for which commitments have | ||||||
19 | been made, and all funds, assets, moneys representing permanent | ||||||
20 | or temporary investments, and cash reserves maintained for the | ||||||
21 | purpose of obtaining income thereon. | ||||||
22 | (b) Upon the transfer of securities and assets from a board | ||||||
23 | of trustees under this Section, the custody and control of the | ||||||
24 | Downstate Firefighter Pension Investment Board over the | ||||||
25 | present and future assets of the pension fund shall take |
| |||||||
| |||||||
1 | effect. The transfer shall be receipted for in detail by the | ||||||
2 | Downstate Firefighter Pension Investment Board and the receipt | ||||||
3 | shall be provided to the board of trustees of the pension fund | ||||||
4 | within 30 days of the effective date of the transfer.
| ||||||
5 | (40 ILCS 5/22C-114 new) | ||||||
6 | Sec. 22C-114. Accounting. In the management of pension fund | ||||||
7 | investments, the board: | ||||||
8 | (1) may, for investment purposes, commingle all or a | ||||||
9 | part of the invested assets of one or more pension funds | ||||||
10 | under its jurisdiction and authority; | ||||||
11 | (2) shall carry assets of all funds at cost or a value | ||||||
12 | determined in accordance with generally accepted | ||||||
13 | accounting principles and accounting procedures approved | ||||||
14 | by the board. Each investment initially transferred to the | ||||||
15 | board by a pension fund shall be similarly valued except | ||||||
16 | that the board may elect to place such value on any | ||||||
17 | investment conditionally in which case the amount of any | ||||||
18 | later realization of such asset in cash that is in excess | ||||||
19 | of or is less than the amount so credited shall be credited | ||||||
20 | or charged to the fund that made the transfer; | ||||||
21 | (3) shall keep proper books of account which shall | ||||||
22 | reflect at all times the value of all investments held by | ||||||
23 | the board for a pension fund whether for the separate | ||||||
24 | account of the fund or in a commingled fund; | ||||||
25 | (4) shall charge each pension fund with its share of |
| |||||||
| |||||||
1 | all expenses of the board at quarter-yearly periods pro | ||||||
2 | rata according to the value of the investments held for the | ||||||
3 | respective funds at the beginning of the quarter or any | ||||||
4 | other equitable formula; and | ||||||
5 | (5) shall charge all distributions made by the board to | ||||||
6 | or for a pension fund to the account maintained for that | ||||||
7 | fund.
| ||||||
8 | (40 ILCS 5/22C-115 new) | ||||||
9 | Sec. 22C-115. Audits and reports. | ||||||
10 | (a) At least annually, the books, records, accounts, and | ||||||
11 | securities of the board shall be audited by a certified public | ||||||
12 | accountant designated by the Auditor General of the State. The | ||||||
13 | audit opinion shall be published as a part of the annual report | ||||||
14 | of the board. | ||||||
15 | (b) For the quarterly periods ending September 30, December | ||||||
16 | 31, and March 31, the board shall submit to each pension fund | ||||||
17 | under its jurisdiction a report containing, among other things, | ||||||
18 | the following information: | ||||||
19 | (1) a full description of the investments acquired, | ||||||
20 | showing average costs; | ||||||
21 | (2) a full description of the securities sold or | ||||||
22 | exchanged, showing average proceeds or other conditions of | ||||||
23 | an exchange; | ||||||
24 | (3) gains or losses realized during the period; | ||||||
25 | (4) income from investments; |
| |||||||
| |||||||
1 | (5) administrative expenses of the board; and | ||||||
2 | (6) the proportion of administrative expenses | ||||||
3 | allocable to each pension fund. | ||||||
4 | (c) An annual report shall be prepared by the board for | ||||||
5 | submission to each pension fund under its jurisdiction within 6 | ||||||
6 | months after the close of each fiscal year. A fiscal year shall | ||||||
7 | date from July 1 of one year to June 30 of the year next | ||||||
8 | following. This report shall contain full information | ||||||
9 | concerning the results of investment operations of the board | ||||||
10 | for the year, the information required under subsections (a) | ||||||
11 | and (b), and the following information: | ||||||
12 | (1) a listing of the investments held by the board as | ||||||
13 | at the end of the year showing their book values and market | ||||||
14 | values and their income yields on market values; | ||||||
15 | (2) the amounts as determined under item (1) of | ||||||
16 | subsection (b) allocable to each pension fund managed by | ||||||
17 | the board; | ||||||
18 | (3) comments on the pertinent factors affecting the | ||||||
19 | operations of the board for the year; | ||||||
20 | (4) a review of the policies maintained by the board | ||||||
21 | and any changes therein that occurred during the year; | ||||||
22 | (5) a copy of the audited financial statements for the | ||||||
23 | year; | ||||||
24 | (6) recommendations for possible changes in the law | ||||||
25 | governing the operations of the board; and | ||||||
26 | (7) a listing of the names of securities brokers and |
| |||||||
| |||||||
1 | dealers dealt with during the year showing the total amount | ||||||
2 | of commissions received by each on transactions with the | ||||||
3 | board.
| ||||||
4 | (40 ILCS 5/22C-115.5 new) | ||||||
5 | Sec. 22C-115.5. Audit of transition. Within 6 months after | ||||||
6 | the transfer of investment assets from an eligible pension fund | ||||||
7 | established under Article 4 of this Code to the control of the | ||||||
8 | Board, the books, records, accounts, and securities of the | ||||||
9 | board shall be audited by a certified public accountant | ||||||
10 | designated by the Illinois Auditor General. The audit shall | ||||||
11 | include, but is not limited to, the following: | ||||||
12 | (i) a full description of the investments acquired, | ||||||
13 | showing average costs; | ||||||
14 | (ii) a full description of the securities sold or | ||||||
15 | exchanged, showing average proceeds or other conditions of | ||||||
16 | an exchange; | ||||||
17 | (iii) gains or losses realized during the period; | ||||||
18 | (iv) income from investments; | ||||||
19 | (v) administrative expenses of the board; and | ||||||
20 | (vi) the proportion of administrative expenses | ||||||
21 | allocable to each pension fund. | ||||||
22 | The audit report shall be published on the board's website | ||||||
23 | and filed with the Department of Insurance.
| ||||||
24 | Section 90. The State Mandates Act is amended by adding |
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1 | Section 8.42 as follows:
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2 | (30 ILCS 805/8.42 new) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | Sec. 8.42. Exempt mandate. Notwithstanding Sections 6 and 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | of this Act, no reimbursement by the State is required for the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | implementation of any mandate created by this amendatory Act of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | the 100th General Assembly.
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7 | Section 999. Effective date. This Act takes effect upon | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | becoming law.
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