SB2490eng 100TH GENERAL ASSEMBLY

  
  
  

 


 
SB2490 EngrossedLRB100 15959 RPS 31076 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 1A-104 as follows:
 
6    (40 ILCS 5/1A-104)
7    Sec. 1A-104. Examinations and investigations.
8    (a) The Division shall make periodic examinations and
9investigations of all pension funds established under this Code
10and maintained for the benefit of employees and officers of
11governmental units in the State of Illinois. However, in lieu
12of making an examination and investigation, the Division may
13accept and rely upon a report of audit or examination of any
14pension fund made by an independent certified public accountant
15pursuant to the provisions of the Article of this Code
16governing the pension fund. The acceptance of the report of
17audit or examination does not bar the Division from making a
18further audit, examination, and investigation if deemed
19necessary by the Division.
20    The Department may implement a flexible system of
21examinations under which it directs resources as it deems
22necessary or appropriate. In consultation with the pension fund
23being examined, the Division may retain attorneys, independent

 

 

SB2490 Engrossed- 2 -LRB100 15959 RPS 31076 b

1actuaries, independent certified public accountants, and other
2professionals and specialists as examiners, the cost of which
3(except in the case of pension funds established under Article
43 or 4) shall be borne by the pension fund that is the subject
5of the examination.
6    (b) The Division shall examine or investigate each pension
7fund established under Article 3 or Article 4 of this Code. The
8schedule of each examination shall be on a periodic basis as
9determined by the Division based on a risk review across funds.
10The risk review determination shall include, but not be limited
11to, the following criteria:
12        (1) the funding level of the pension fund;
13        (2) the employer contribution history;
14        (3) the investment return history of the fund;
15        (4) consideration of any complaints received from the
16    pension fund or its participants; and
17        (5) any previous compliance issues related to the fund
18    such that each fund shall be examined once every 3 years.
19    Each examination shall include, but not be limited to, a
20review of the following:
21        (1) an audit of financial transactions, investment
22    policies, and procedures;
23        (2) an examination of books, records, documents,
24    files, and other pertinent memoranda relating to
25    financial, statistical, and administrative operations;
26        (3) a review of policies and procedures maintained for

 

 

SB2490 Engrossed- 3 -LRB100 15959 RPS 31076 b

1    the administration and operation of the pension fund;
2        (4) a determination of whether or not full effect is
3    being given to the statutory provisions governing the
4    operation of the pension fund, including the employer's
5    requirement to make a lawful contribution consistent with
6    Section 4-118;
7        (5) a determination of whether or not the
8    administrative policies in force are in accord with the
9    purposes of the statutory provisions and effectively
10    protect and preserve the rights and equities of the
11    participants;
12        (6) a determination of whether or not proper financial
13    and statistical records have been established and adequate
14    documentary evidence is recorded and maintained in support
15    of the several types of annuity and benefit payments being
16    made; and
17        (7) a determination of whether or not the calculations
18    made by the fund for the payment of all annuities and
19    benefits are accurate.
20    In addition, the Division may conduct investigations,
21which shall be identified as such and which may include one or
22more of the items listed in this subsection.
23    A copy of the report of examination or investigation as
24prepared by the Division shall be submitted to the secretary of
25the board of trustees of the pension fund examined or
26investigated and to the chief executive officer of the

 

 

SB2490 Engrossed- 4 -LRB100 15959 RPS 31076 b

1municipality. The Director, upon request, shall grant a hearing
2to the officers or trustees of the pension fund or their duly
3appointed representatives, upon any facts contained in the
4report of examination. The hearing shall be conducted before
5filing the report or making public any information contained in
6the report. The Director may withhold the report from public
7inspection for up to 60 days following the hearing.
8(Source: P.A. 95-950, eff. 8-29-08.)
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.