Sen. James F. Clayborne, Jr.

Filed: 4/11/2016

 

 


 

 


 
09900SB3071sam001LRB099 18394 RPS 45582 a

1
AMENDMENT TO SENATE BILL 3071

2    AMENDMENT NO. ______. Amend Senate Bill 3071 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 22A-109, 22A-111, 22A-113.1, 22A-113.2, and
622A-113.3 as follows:
 
7    (40 ILCS 5/22A-109)  (from Ch. 108 1/2, par. 22A-109)
8    Sec. 22A-109. Membership of board. The board shall consist
9of the following members:
10        (1) Five trustees appointed by the Governor with the
11    advice and consent of the Senate who may not hold an
12    elective State office.
13        (2) The Treasurer.
14        (3) The Comptroller, who shall represent the State
15    Employees' Retirement System of Illinois.
16        (4) The Chairperson of the General Assembly Retirement

 

 

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1    System.
2        (5) The Chairperson of the Judges Retirement System of
3    Illinois.
4The appointive members shall serve for terms of 4 years except
5that the terms of office of the original appointive members
6pursuant to this amendatory Act of the 96th General Assembly
7shall be as follows: One member for a term of 1 year; 1 member
8for a term of 2 years; 1 member for a term of 3 years; and 2
9members for a term of 4 years. Vacancies among the appointive
10members shall be filled for unexpired terms by appointment in
11like manner as for original appointments, and appointive
12members shall continue in office until their successors have
13been appointed and have qualified.
14    Notwithstanding any provision of this Section to the
15contrary, the term of office of each trustee of the Board
16appointed by the Governor who is sitting on the Board on the
17effective date of this amendatory Act of the 96th General
18Assembly is terminated on that effective date. A trustee
19sitting on the board on the effective date of this amendatory
20Act of the 96th General Assembly may not hold over in office
21for more than 60 days after the effective date of this
22amendatory Act of the 96th General Assembly. Nothing in this
23Section shall prevent the Governor from making a temporary
24appointment or nominating a trustee holding office on the day
25before the effective date of this amendatory Act of the 96th
26General Assembly.

 

 

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1    Each person appointed to membership shall qualify by taking
2an oath of office before the Secretary of State stating that he
3will diligently and honestly administer the affairs of the
4board and will not violate or knowingly permit the violation of
5any provisions of this Article.
6    Members of the board shall receive no salary for service on
7the board but shall be reimbursed for travel expenses incurred
8while on business for the board according to the standards in
9effect for members of the Illinois Legislative Research Unit.
10    A majority of the members of the board shall constitute a
11quorum. The board shall elect from its membership, biennially,
12a Chairman, Vice Chairman and a Recording Secretary. These
13officers, together with one other member elected by the board,
14shall constitute the executive committee. During the interim
15between regular meetings of the board, the executive committee
16shall have authority to conduct all business of the board and
17shall report such business conducted at the next following
18meeting of the board for ratification.
19    No member of the board shall have any interest in any
20brokerage fee, commission or other profit or gain arising out
21of any investment made by the board. This paragraph does not
22preclude ownership by any member of any minority interest in
23any common stock or any corporate obligation in which
24investment is made by the board.
25    The board shall contract for a blanket fidelity bond in the
26penal sum of not less than $1,000,000.00 to cover members of

 

 

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1the board, the director and all other employees of the board
2conditioned for the faithful performance of the duties of their
3respective offices, the premium on which shall be paid by the
4board. The bond shall be filed with the State Treasurer for
5safekeeping.
6(Source: P.A. 96-6, eff. 4-3-09.)
 
7    (40 ILCS 5/22A-111)  (from Ch. 108 1/2, par. 22A-111)
8    Sec. 22A-111. The Board shall manage the investments of any
9pension fund, retirement system, or education fund for the
10purpose of obtaining a total return on investments for the long
11term. It also shall perform such other functions as may be
12assigned or directed by the General Assembly.
13    The authority of the board to manage pension fund
14investments and the liability shall begin when there has been a
15physical transfer of the pension fund investments to the board
16and placed in the custody of the board's custodian State
17Treasurer.
18    The authority of the board to manage monies from the
19education fund for investment and the liability of the board
20shall begin when there has been a physical transfer of
21education fund investments to the board and placed in the
22custody of the board's custodian State Treasurer.
23    The board may not delegate its management functions, but it
24may, but is not required to, arrange to compensate for
25personalized investment advisory service for any or all

 

 

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1investments under its control with any national or state bank
2or trust company authorized to do a trust business and
3domiciled in Illinois, other financial institution organized
4under the laws of Illinois, or an investment advisor who is
5qualified under Federal Investment Advisors Act of 1940 and is
6registered under the Illinois Securities Law of 1953. Nothing
7contained herein shall prevent the Board from subscribing to
8general investment research services available for purchase or
9use by others. The Board shall also have the authority to
10compensate for accounting services.
11    This Section shall not be construed to prohibit the
12Illinois State Board of Investment from directly investing
13pension assets in public market investments, private
14investments, real estate investments, or other investments
15authorized by this Code.
16(Source: P.A. 96-1554, eff. 3-18-11.)
 
17    (40 ILCS 5/22A-113.1)  (from Ch. 108 1/2, par. 22A-113.1)
18    Sec. 22A-113.1. Investable funds.
19    Each retirement system under the management of the Illinois
20State Board of Investment shall report to the board from time
21to time the amounts of funds available for investment. These
22amounts shall be transferred immediately to the board's
23custodian or the custodian's State Treasurer or his authorized
24agent for the account of the board to be applied for investment
25by the board. Notice to the Illinois State Board of Investment

 

 

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1of each such transfer shall be given by the retirement system
2as the transfer occurs.
3(Source: P.A. 78-646.)
 
4    (40 ILCS 5/22A-113.2)  (from Ch. 108 1/2, par. 22A-113.2)
5    Sec. 22A-113.2. Custodian State Treasurer.
6    The securities, funds and other assets transferred to the
7The Illinois State Board of Investment or otherwise acquired by
8the board shall be placed in the custody of the board's
9custodian. The custodian shall State Treasurer who shall serve
10as official custodian of the board, provide adequate safe
11deposit facilities therefor and hold all such securities, funds
12and other assets subject to the order of the board.
13    As soon as may be practicable, but in no event later than
14December 31, 2016, the board shall appoint and retain a
15qualified custodian. Until a custodian has been appointed by
16the board, the State Treasurer shall serve as official
17custodian of the board.
18    The State Treasurer shall furnish a corporate surety bond
19of such amount as the board designates, which bond shall
20indemnify the board against any loss that may result from any
21action or failure to act by the Treasurer or any of his agents.
22All charges incidental to the procuring and giving of such bond
23shall be paid by the board. The bond shall be in the custody of
24the board.
25(Source: P.A. 77-611.)
 

 

 

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1    (40 ILCS 5/22A-113.3)  (from Ch. 108 1/2, par. 22A-113.3)
2    Sec. 22A-113.3. Investable funds of education foundation.
3The Illinois Bank Examiners' Education Foundation shall report
4to the board from time to time the amounts of monies available
5for investment by the board. These amounts shall be transferred
6promptly to the board's custodian or the custodian's State
7Treasurer or his authorized agent for the account of the board
8to be applied for investment by the board. Notice to the board
9of each such transfer shall be given by the Illinois Bank
10Examiners' Education Foundation after the transfer occurs.
11(Source: P.A. 84-1127.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".