Sen. Susan Garrett
Filed: 3/11/2008
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 2090 




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    AMENDMENT NO. ______. Amend Senate Bill 2090 by replacing 
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everything after the enacting clause with the following:

 
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    "Section 5. The Illinois Pension Code is amended  by 
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changing Section 1-110 as follows:
 



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    (40 ILCS 5/1-110)  (from Ch. 108 1/2, par. 1-110)



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    Sec. 1-110. Prohibited Transactions. 

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    (a) A fiduciary with respect to a retirement system or 
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pension fund shall
not cause the the retirement system or 
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pension fund to engage in a transaction if
he or she knows or 
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should know that such transaction constitutes a direct or

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indirect:


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        (1) Sale or exchange, or leasing of any property from 
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    the retirement
system
or pension fund to a party in 
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    interest for less than adequate consideration,
or from a 
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    party in interest to a retirement system or pension fund 
 


 






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    for more
than adequate consideration.


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        (2) Lending of money or other extension of credit from 
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    the retirement
system or pension fund to a party in 
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    interest without the receipt of adequate
security and a 
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    reasonable rate of interest, or from a party in interest to

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    a retirement system or pension fund with the provision of 
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    excessive security
 or an unreasonably high rate of 
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    interest.


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        (3) Furnishing of goods, services or facilities from 
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    the retirement
system or pension fund to a party in 
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    interest for less than adequate
consideration, or from a 
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    party in interest to a retirement system or
pension fund 
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    for more than adequate consideration.


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        (4) Transfer to, or use by or for the benefit of, a 
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    party in interest
of any assets of a retirement system or 
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    pension fund for less than adequate
consideration.

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    (b) A fiduciary with respect to a retirement system or 
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pension fund
established under this Code shall not:


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        (1) Deal with the assets of the retirement system or 
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    pension fund in his
own interest or for his own account;


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        (2) In his individual or any other capacity act in any 
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    transaction
involving the retirement system or pension 
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    fund on behalf of a party whose
interests are adverse to 
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    the interests of the retirement system or pension fund
or 
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    the interests of its participants or beneficiaries; or


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        (3) Receive any consideration for his own personal 
 


 






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    account from any party
dealing with the retirement system 
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    or pension fund in connection with a
transaction involving 
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    the assets of the retirement system or pension
fund.

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    (c) Nothing in this Section shall be construed to prohibit 
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any trustee from:


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        (1) Receiving any benefit to which he may be entitled 
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    as a participant
or beneficiary in the retirement system or 
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    pension fund.


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        (2) Receiving any reimbursement of expenses properly 
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    and actually incurred
in the performance of his duties with 
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    the retirement system or pension fund.


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        (3) Serving as a trustee in addition to being an 
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    officer, employee, agent
or other representative of a party 
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    in interest.

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(Source: P.A. 88-535.)".