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SB2212 Engrossed |
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LRB096 09675 AMC 19836 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing |
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| Section 1A-104 as follows:
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| (40 ILCS 5/1A-104)
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| Sec. 1A-104. Examinations and investigations.
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| (a) The Division shall make periodic examinations and |
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| investigations of all
pension funds established under this Code |
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| and maintained for the benefit of
employees and officers of |
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| governmental units in the State of Illinois.
However, in lieu |
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| of making an examination and investigation, the Division
may |
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| accept and rely upon a report of audit or examination of any |
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| pension fund
made by an independent certified public accountant |
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| pursuant to the provisions
of the Article of this Code |
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| governing the pension fund. The acceptance of the
report of |
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| audit or examination does not bar the Division from making a |
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| further
audit, examination, and investigation if deemed |
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| necessary by the Division.
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| The Department may implement a flexible system of |
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| examinations under
which it directs resources as it deems |
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| necessary or appropriate. In
consultation with the pension fund |
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| being examined, the Division may retain
attorneys, independent |
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SB2212 Engrossed |
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LRB096 09675 AMC 19836 b |
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| actuaries, independent certified public accountants, and
other |
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| professionals and specialists as examiners, the cost of which |
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| (except in
the case of pension funds established under Article |
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| 3 or 4) shall be borne by
the pension fund that is the subject |
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| of the examination.
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| (b) The Division shall examine or investigate each pension |
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| fund established
under Article 3 or Article 4 of this Code. |
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| Beginning December 31, 2010, the The schedule of each |
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| examination shall be such that each fund shall be examined once |
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| every 5 3 years. The Division shall comply with the changes |
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| made by this amendatory Act of the 96th General Assembly, and |
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| any costs associated with the changes shall be paid for using |
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| the pension fund fee structure as it exists on the effective |
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| date of that amendatory Act.
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| Each examination shall include the following:
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| (1) an audit of financial transactions, investment |
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| policies, and
procedures;
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| (2) an examination of books, records, documents, |
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| files, and other
pertinent memoranda relating to |
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| financial, statistical, and administrative
operations;
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| (3) a review of policies and procedures maintained for |
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| the administration
and operation of the pension fund;
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| (4) a determination of whether or not full effect is |
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| being given to the
statutory provisions governing the |
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| operation of the pension fund;
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| (5) a determination of whether or not the |
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SB2212 Engrossed |
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LRB096 09675 AMC 19836 b |
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| administrative policies in force
are in accord with the |
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| purposes of the statutory provisions and effectively
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| protect and preserve the rights and equities of the |
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| participants;
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| (6) a determination of whether or not proper financial |
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| and statistical
records have been established and adequate |
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| documentary evidence is recorded and
maintained in support |
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| of the several types of annuity and benefit payments
being |
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| made; and
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| (7) a determination of whether or not the calculations |
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| made by the fund for the payment of all annuities and |
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| benefits are accurate. |
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| In addition, the Division may conduct investigations, |
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| which shall be
identified as such and which may include one or |
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| more of the items listed in
this subsection.
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| A copy of the report of examination or investigation as |
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| prepared by the
Division shall be submitted to the secretary of |
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| the board of trustees of the
pension fund examined or |
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| investigated and to the chief executive officer of the |
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| municipality. The Director, upon request, shall grant
a hearing |
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| to the officers or trustees of the pension fund or their duly
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| appointed representatives, upon any facts contained in the |
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| report of
examination. The hearing shall be conducted before |
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| filing the report or making
public any information contained in |
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| the report. The Director may withhold the
report from public |
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| inspection for up to 60 days following the hearing.
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