Full Text of SB1292 96th General Assembly
SB1292 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB1292
Introduced 2/10/2009, by Sen. Iris Y. Martinez 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. Requires each retirement system to establish a policy with the goal of increasing the racial, ethnic, and gender diversity of its fiduciaries, update the goals annually, and submit a report to the Governor and General Assembly by September 1 of each year.
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| PENSION IMPACT NOTE ACT MAY APPLY | |
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A BILL FOR
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SB1292 |
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LRB096 08007 AMC 19275 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 |
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SB1292 |
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LRB096 08007 AMC 19275 b |
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| the fund to any other person or entity for the
purpose of | 2 |
| consolidating or merging its assets and management with any | 3 |
| other
pension fund or public investment authority, unless the | 4 |
| board resolution
authorizing such transfer is submitted for | 5 |
| approval to the contributors and
pensioners of the fund at | 6 |
| elections held not less than 30 days after the
adoption of such | 7 |
| 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 | 9 |
| contributors election
and the pensioners election. The | 10 |
| election procedures and qualifications
governing the election | 11 |
| of trustees shall govern the submission of resolutions
for | 12 |
| approval under this paragraph, insofar as they may be made | 13 |
| applicable.
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| (3) Pursuant to subsections (h) and (i) of Section 6 of | 15 |
| Article VII of
the Illinois Constitution, the investment | 16 |
| authority of boards of trustees
of retirement systems and | 17 |
| pension funds established under this Code is declared
to be a | 18 |
| subject of exclusive State jurisdiction, and the concurrent | 19 |
| exercise
by a home rule unit of any power affecting such | 20 |
| investment authority is
hereby specifically denied and | 21 |
| preempted.
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| (4) For the purposes of this Code, "emerging investment | 23 |
| manager" means a
qualified investment adviser that manages an | 24 |
| investment portfolio of at
least $10,000,000 but less than | 25 |
| $2,000,000,000 and is a
"minority owned business" or "female | 26 |
| owned business" as those terms are
defined in the Business |
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SB1292 |
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LRB096 08007 AMC 19275 b |
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| Enterprise for Minorities,
Females, and Persons with | 2 |
| Disabilities Act.
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| It is hereby declared to be the public policy of the State | 4 |
| of Illinois to
encourage the trustees of public employee | 5 |
| retirement systems
to use emerging investment managers in | 6 |
| managing their system's assets encompassing all asset classes | 7 |
| and brokerage to the
greatest extent feasible within the bounds | 8 |
| of financial and fiduciary
prudence, and to take affirmative | 9 |
| steps to remove any barriers to the full
participation of | 10 |
| emerging investment managers in investment opportunities
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| 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 | 14 |
| by
September 1 of each year. The report shall identify the | 15 |
| emerging
investment managers used by the system, the percentage | 16 |
| of the system's
assets under the investment control of emerging | 17 |
| investment managers, and
the actions it has undertaken to | 18 |
| increase the use of emerging investment
managers, including | 19 |
| encouraging other investment managers to use emerging
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| investment managers as subcontractors when the opportunity | 21 |
| arises.
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| The use of an emerging investment manager does not | 23 |
| constitute a transfer
of investment authority for the purposes | 24 |
| of subsection (2) of this Section.
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| (5) Each retirement system subject to this Code shall | 26 |
| establish a policy with the goal of increasing the racial, |
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| ethnic, and gender diversity of its fiduciaries, including its | 2 |
| consulting and senior staff. Goals shall be updated annually, | 3 |
| with each retirement system preparing a report to be submitted | 4 |
| to the Governor and the General Assembly by September 1 of each | 5 |
| year. | 6 |
| (Source: P.A. 94-471, eff. 8-4-05.)
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