HB3484 99TH GENERAL ASSEMBLY

LRB099 09762 EFG 29972 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3484

Introduced , by Rep. Elaine Nekritz

SYNOPSIS AS INTRODUCED:

15 ILCS 405/10-05e new
40 ILCS 5/7-195.1	from Ch. 108 1/2, par. 7-195.1
40 ILCS 5/7-210	from Ch. 108 1/2, par. 7-210
40 ILCS 5/7-214	from Ch. 108 1/2, par. 7-214

Amends the IMRF Article of the Illinois Pension Code. Replaces the State Treasurer as treasurer of the Fund with one or more custodians appointed by the Board of the Fund. Deletes the security bond requirement. Replaces references to payments made by voucher and warrant with payments made by check or draft. Deletes obsolete language. Makes related and technical changes. Amends the State Comptroller Act. Specifies the manner of complying with certain provisions of the Illinois Pension Code authorizing deductions from State funds payable to an employer. Effective July 1, 2015.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Comptroller Act is amended by adding Section 10-05e as follows:

(15 ILCS 405/10-05e new)

Sec. 10-05e. Deductions from amounts due to pension funds or retirement systems; statement of reason for deduction. Whenever an employer participating in any pension fund or retirement system created under Article 3, 4, 5, 6, 7, 8, or 11 of the Illinois Pension Code shall be entitled to a grant of State funds, on any account, against whom there shall be any then due and payable account or claim in favor of the pension fund or retirement system, upon certification by that entity, the Comptroller, upon notification thereof, shall ascertain the amount due and payable, and draw a warrant on the treasury or on other funds held by the State Treasurer, stating the amount for which the party was entitled to a warrant or other payment, the amount deducted therefrom, and on what account, and directing the payment of the balance; which warrant or payment as so drawn shall be entered on the books of the Treasurer, and such balance only shall be paid. The Comptroller may deduct the entire amount due and payable to the retirement system or pension fund, or a portion of the amount due and payable to that entity, in accordance with this Section and the corresponding Section of the Illinois Pension Code authorizing such deductions. Whenever the Comptroller draws a warrant or makes a payment involving a deduction ordered under this Section, the Comptroller shall notify the participating employer and the retirement system or pension fund that submitted the voucher of the reason for the deduction.

Section 10. The Illinois Pension Code is amended by changing Sections 7-195.1, 7-210, and 7-214 as follows:

(40 ILCS 5/7-195.1) (from Ch. 108 1/2, par. 7-195.1)

Sec. 7-195.1. To establish and maintain a revolving account. To establish and maintain a revolving account in a bank or savings and loan association, approved by the State Treasurer as a State depositary and having capital funds, represented by capital, surplus, and undivided profits, of at least 5 million dollars, for the purpose of making payments of annuities, benefits, and administrative expenses and payments to the State Agency provided in Section 7-170. All funds deposited in such account shall be placed in the name of the Fund fund and shall be withdrawn only by a check or draft upon the bank or savings and loan association signed by the president of the board or the executive director, as the board may direct. In case the president or executive director, whose signature appears upon any check or draft, after attaching his signature ceases to hold office before the delivery thereof to the payee, his signature nevertheless shall be valid and sufficient for all purposes with the same effect as if he had remained in office until delivery thereof. The revolving account shall be created by resolution of the board. The State Comptroller, upon receipt of a copy of such resolution and a voucher designating the payment of $300,000 into the revolving account, shall draw his warrant on the State Treasurer for payment of same to the Fund for deposit in the revolving account. The monies in the revolving account shall be held and expenditures shall be made by the Fund for the purposes herein set forth. The Fund shall reimburse the revolving account for expenditures for such purposes and the Comptroller, upon receipt of vouchers signed as provided in Section 7-210 and including a statement of expenditures made from the revolving account, shall draw his warrant on the State Treasurer for the payment of the amount of such expenditures to the Fund for deposit in the revolving account.

No bank or savings and loan association shall receive investment funds as permitted by this Section, unless it has complied with the requirements established pursuant to Section 6 of the Public Funds Investment Act "An Act relating to certain investments of public funds by public agencies", approved July 23, 1943, as now or hereafter amended. The limitations set forth in such Section 6 shall be applicable only at the time of investment and shall not require the liquidation of any investment at any time.

(Source: P.A. 83-541.)

(40 ILCS 5/7-210) (from Ch. 108 1/2, par. 7-210)

Sec. 7-210. Funds.

(a) All money received by the board shall immediately be deposited with the custodian State Treasurer for the account of the Fund fund, or in the case of funds received under Section 7-199.1, in a separate account maintained for that purpose. All payments from the accounts of the Fund shall be made by the custodian only, and only by a check or draft signed by the president of the board or the executive director, as the board may direct. Such checks and drafts All disbursements of funds held by the State Treasurer shall be made only upon warrants of the State Comptroller drawn upon the Treasurer as custodian of this fund upon vouchers signed by the person or persons designated for such purpose by resolution of the board. The Comptroller is authorized to draw such warrants upon vouchers so signed, including warrants payable to the Fund for deposit in a revolving account authorized by Section 7-195.1. The Treasurer shall accept all warrants so signed and shall be released from liability for all payments made thereon. Vouchers shall be drawn only upon proper authorization by the board as properly recorded in the official minute books of the meetings of the board.

(b) (Blank). All securities of the fund when received shall be deposited with the State Treasurer who shall provide adequate safe deposit facilities for their preservation and have custody of them.

(c) The assets of the Fund fund shall be invested as one fund, and no particular person, municipality, or instrumentality thereof or participating instrumentality shall have any right in any specific security or in any item of cash other than an undivided interest in the whole.

(d) Except as provided in subsection (d-5), whenever any employees of a municipality or participating instrumentality have been or shall be excluded from participation in this Fund fund by virtue of the application of paragraph b of Section 7-109 (2), the board shall issue a check or draft voucher authorizing the Comptroller to draw his warrant upon the Treasurer as custodian of this fund in an amount equal to the accumulated contributions of such employees. Such check or draft warrant shall be drawn in favor of the appropriate fund of the pension or retirement fund in which such employees have or shall become participants. Such transfer shall terminate any further rights of such employees under this Fund fund.

(d-5) Upon creation of a newly established Article 3 police pension fund by referendum under Section 3-145 or by census under Section 3-105, the following amounts shall be transferred from this Fund to the new police pension fund, within 30 days after an application therefor is received from the new pension fund:

(1) the amounts actually contributed to this Fund as employee contributions by or on behalf of the police officers transferring to the new pension fund for their service as police officers of the municipality that is establishing the new pension fund, plus interest on those amounts at the rate of 6% per year, compounded annually, from the date of contribution to the date of transfer to the new pension fund, and

(2) an amount representing employer contributions, equal to the total amount determined under item (1). This transfer terminates any further rights of such police officers in this Fund arising out of their service as police officers of the municipality that is establishing the new pension fund.

(e) If a participating instrumentality terminates participation because it fails to meet the requirements of Section 7-108, it shall pay to the Fund fund the amount equal to any net debit balance in its municipality reserve account and account receivable. Its successors, and assigns and transferees of its assets shall be obligated to make this payment to the extent of the value of assets transferred to them. The Fund fund shall pay an amount equal to any net credit balance to the participating instrumentality, its successors or assigns. Any remaining net debit or credit balance not collectible or payable shall be transferred to the terminated municipality reserve account. The Fund fund shall pay to each employee of the participating instrumentality an amount equal to his credits in the employee reserves. The employees shall have no further rights to any benefits from the Fund fund, except that annuities awarded prior to the date of termination shall continue to be paid.

(Source: P.A. 98-729, eff. 7-26-14.)

(40 ILCS 5/7-214) (from Ch. 108 1/2, par. 7-214)

Sec. 7-214. Custodian State treasurer. The Board shall appoint one or more custodians to receive and hold the assets of the Fund on such terms as the Board may agree. The State Treasurer shall be the treasurer of the fund and shall be responsible for the proper handling of all the assets of the fund in accordance with this Article. He shall furnish a corporate surety bond of such amount as the board designates, which bond shall indemnify the board against any loss which may result from any action or failure to act by the treasurer or any of his agents. All charges incidental to the procuring and giving of such bond shall be paid by the board.

(Source: Laws 1963, p. 161.)

Section 99. Effective date. This Act takes effect July 1, 2015.