Full Text of SB0253 94th General Assembly
SB0253 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB0253
Introduced 2/3/2005, by Sen. Emil Jones, Jr. SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/1-109.1 |
from Ch. 108 1/2, par. 1-109.1 |
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Amends the Illinois Pension Code. Provides that the maximum value of the investment portfolio that an emerging investment manager manages is $2,000,000,000 (was, $400,000,000). Effective immediately.
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| PENSION IMPACT NOTE ACT MAY APPLY | |
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A BILL FOR
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SB0253 |
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LRB094 07452 AMC 37615 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 | 5 |
| Section 1-109.1 as follows:
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| (40 ILCS 5/1-109.1) (from Ch. 108 1/2, par. 1-109.1)
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| Sec. 1-109.1. Allocation and Delegation of Fiduciary | 8 |
| Duties.
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| (1) Subject to the provisions of Section 22A-113 of this | 10 |
| Code and
subsections (2) and (3) of this Section, the board of | 11 |
| trustees of a
retirement system or pension fund established | 12 |
| under this Code may:
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| (a) Appoint one or more investment managers as | 14 |
| fiduciaries to manage
(including the power to acquire and | 15 |
| dispose of) any assets of the
retirement system or pension | 16 |
| fund; and
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| (b) Allocate duties among themselves and designate | 18 |
| others as fiduciaries
to carry out specific fiduciary | 19 |
| activities other than the management of the
assets of the | 20 |
| retirement system or pension fund.
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| (2) The board of trustees of a pension fund established | 22 |
| under Article 5, 6,
8, 9, 10, 11, 12 or 17 of this Code may not | 23 |
| transfer its investment authority,
nor transfer the assets of | 24 |
| the fund to any other person or entity for the
purpose of | 25 |
| consolidating or merging its assets and management with any | 26 |
| other
pension fund or public investment authority, unless the | 27 |
| board resolution
authorizing such transfer is submitted for | 28 |
| approval to the contributors and
pensioners of the fund at | 29 |
| elections held not less than 30 days after the
adoption of such | 30 |
| resolution by the board, and such resolution is approved by a
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| majority of the votes cast on the question in both the | 32 |
| contributors election
and the pensioners election. The |
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SB0253 |
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LRB094 07452 AMC 37615 b |
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| election procedures and qualifications
governing the election | 2 |
| of trustees shall govern the submission of resolutions
for | 3 |
| approval under this paragraph, insofar as they may be made | 4 |
| applicable.
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| (3) Pursuant to subsections (h) and (i) of Section 6 of | 6 |
| Article VII of
the Illinois Constitution, the investment | 7 |
| authority of boards of trustees
of retirement systems and | 8 |
| pension funds established under this Code is declared
to be a | 9 |
| subject of exclusive State jurisdiction, and the concurrent | 10 |
| exercise
by a home rule unit of any power affecting such | 11 |
| investment authority is
hereby specifically denied and | 12 |
| preempted.
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| (4) For the purposes of this Code, "emerging investment | 14 |
| manager" means a
qualified investment adviser that manages an | 15 |
| investment portfolio of at
least $10,000,000 but less than | 16 |
| $2,000,000,000
$400,000,000 on January 1, 1993 and is a
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| "minority owned business" or "female owned business" as those | 18 |
| terms are
defined in the Business Enterprise for Minorities,
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| Females, and Persons with Disabilities Act.
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| It is hereby declared to be the public policy of the State | 21 |
| of Illinois to
encourage the trustees of public employee | 22 |
| retirement systems
to use emerging investment managers in | 23 |
| managing their system's assets to the
greatest extent feasible | 24 |
| within the bounds of financial and fiduciary
prudence, and to | 25 |
| take affirmative steps to remove any barriers to the full
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| participation of emerging investment managers in investment | 27 |
| opportunities
afforded by those retirement systems.
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| Each retirement system subject to this Code shall prepare a
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| report to be submitted to the Governor and the General Assembly | 30 |
| by
September 1 of each year. The report shall identify the | 31 |
| emerging
investment managers used by the system, the percentage | 32 |
| of the system's
assets under the investment control of emerging | 33 |
| investment managers, and
the actions it has undertaken to | 34 |
| increase the use of emerging investment
managers, including | 35 |
| encouraging other investment managers to use emerging
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| investment managers as subcontractors when the opportunity |
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LRB094 07452 AMC 37615 b |
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| arises.
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| The use of an emerging investment manager does not | 3 |
| constitute a transfer
of investment authority for the purposes | 4 |
| of subsection (2) of this Section.
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| (Source: P.A. 92-16, eff. 6-28-01.)
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| Section 99. Effective date. This Act takes effect upon | 7 |
| becoming law.
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