Full Text of SB2212 96th General Assembly
SB2212 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB2212
Introduced 2/20/2009, by Sen. Susan Garrett SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/1A-104 |
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40 ILCS 5/1A-112 |
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Amends the Illinois Pension Code. In provisions concerning Public Pension Division examinations or investigations of pension funds (i) provides that the Division of Insurance may retain attorneys, independent actuaries, independent certified public accountants, and specialists as examiners as deemed necessary by the Director of Insurance and removes language providing that the costs of these professionals shall be borne by the pension fund that is the subject of the examination and (ii) in provisions concerning the examination of downstate police and fire pension funds, provides that, beginning on December 31, 2016, the schedule of each examination shall be such that each fund shall be examined once every 5 years (was, once every 3 years). Increases the annual compliance fees with respect to a downstate police or fire pension fund from 0.02% (2 basis points) of the total assets of the pension fund, but not more than $8,000 to 0.03% (3 basis points) of the total assets of the pension fund, but not more than $12,000. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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SB2212 |
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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 | 5 |
| Sections 1A-104 and 1A-112 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 | 9 |
| investigations of all
pension funds established under this Code | 10 |
| and maintained for the benefit of
employees and officers of | 11 |
| governmental units in the State of Illinois.
However, in lieu | 12 |
| of making an examination and investigation, the Division
may | 13 |
| accept and rely upon a report of audit or examination of any | 14 |
| pension fund
made by an independent certified public accountant | 15 |
| pursuant to the provisions
of the Article of this Code | 16 |
| governing the pension fund. The acceptance of the
report of | 17 |
| audit or examination does not bar the Division from making a | 18 |
| further
audit, examination, and investigation if deemed | 19 |
| necessary by the Division.
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| The Department may implement a flexible system of | 21 |
| examinations under
which it directs resources as it deems | 22 |
| necessary or appropriate. In
consultation with the pension fund | 23 |
| being examined, the Division may retain
attorneys, independent |
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SB2212 |
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LRB096 09675 AMC 19836 b |
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| actuaries, independent certified public accountants, and
other | 2 |
| professionals and specialists as examiners, deemed necessary | 3 |
| by the Director of Insurance the cost of which (except in
the | 4 |
| case of pension funds established under Article 3 or 4) shall | 5 |
| be borne by
the pension fund that is the subject of the | 6 |
| examination .
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| (b) The Division shall examine or investigate each pension | 8 |
| fund established
under Article 3 or Article 4 of this Code. | 9 |
| Beginning December 31, 2016, the The schedule of each | 10 |
| examination shall be such that each fund shall be examined once | 11 |
| every 5 3 years.
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| Each examination shall include the following:
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| (1) an audit of financial transactions, investment | 14 |
| policies, and
procedures;
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| (2) an examination of books, records, documents, | 16 |
| files, and other
pertinent memoranda relating to | 17 |
| financial, statistical, and administrative
operations;
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| (3) a review of policies and procedures maintained for | 19 |
| the administration
and operation of the pension fund;
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| (4) a determination of whether or not full effect is | 21 |
| being given to the
statutory provisions governing the | 22 |
| operation of the pension fund;
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| (5) a determination of whether or not the | 24 |
| administrative policies in force
are in accord with the | 25 |
| purposes of the statutory provisions and effectively
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| protect and preserve the rights and equities of the |
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SB2212 |
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LRB096 09675 AMC 19836 b |
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| participants;
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| (6) a determination of whether or not proper financial | 3 |
| and statistical
records have been established and adequate | 4 |
| documentary evidence is recorded and
maintained in support | 5 |
| of the several types of annuity and benefit payments
being | 6 |
| made; and
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| (7) a determination of whether or not the calculations | 8 |
| made by the fund for the payment of all annuities and | 9 |
| benefits are accurate. | 10 |
| In addition, the Division may conduct investigations, | 11 |
| which shall be
identified as such and which may include one or | 12 |
| more of the items listed in
this subsection.
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| A copy of the report of examination or investigation as | 14 |
| prepared by the
Division shall be submitted to the secretary of | 15 |
| the board of trustees of the
pension fund examined or | 16 |
| investigated and to the chief executive officer of the | 17 |
| municipality. The Director, upon request, shall grant
a hearing | 18 |
| to the officers or trustees of the pension fund or their duly
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| appointed representatives, upon any facts contained in the | 20 |
| report of
examination. The hearing shall be conducted before | 21 |
| filing the report or making
public any information contained in | 22 |
| the report. The Director may withhold the
report from public | 23 |
| inspection for up to 60 days following the hearing.
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| (Source: P.A. 95-950, eff. 8-29-08.)
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| (40 ILCS 5/1A-112)
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LRB096 09675 AMC 19836 b |
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| Sec. 1A-112. Fees.
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| (a) Every pension fund that is required to file an annual | 3 |
| statement under
Section 1A-109 shall pay to the Department an | 4 |
| annual compliance fee. In the
case of a pension fund under | 5 |
| Article 3 or 4 of this Code, the annual compliance
fee shall be | 6 |
| 0.03% (3 basis points) 0.02% (2 basis points) of the total
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| assets of the pension
fund, as reported in the most current | 8 |
| annual statement of the fund, but not
more than $12,000 $8,000 . | 9 |
| In the case of all other pension funds and
retirement
systems, | 10 |
| the annual compliance fee shall be $8,000.
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| (b) The annual compliance fee shall be due on June 30 for | 12 |
| the following
State fiscal year, except that the fee payable in | 13 |
| 1997 for fiscal year 1998
shall be due no earlier than 30 days | 14 |
| following the effective date of this
amendatory Act of 1997.
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| (c) Any information obtained by the Division that is | 16 |
| available to the public
under the Freedom of Information Act | 17 |
| and is either compiled in published form
or maintained on a | 18 |
| computer processible medium shall be furnished upon the
written | 19 |
| request of any applicant and the payment of a reasonable | 20 |
| information
services fee established by the Director, | 21 |
| sufficient to cover the total cost to
the Division of | 22 |
| compiling, processing, maintaining, and generating the
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| information. The information may be furnished by means of | 24 |
| published copy or on
a computer processed or computer | 25 |
| processible medium.
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| No fee may be charged to any person for information that |
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LRB096 09675 AMC 19836 b |
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| the Division is
required by law to furnish to that person.
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| (d) Except as otherwise provided in this Section, all fees | 3 |
| and penalties
collected by the Department under this Code shall | 4 |
| be deposited into the Public
Pension Regulation Fund.
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| (e) Fees collected under subsection (c) of this Section and | 6 |
| money collected
under Section 1A-107 shall be deposited into | 7 |
| the Department's Statistical
Services Revolving Fund and | 8 |
| credited to the account of the Public Pension
Division. This | 9 |
| income shall be used exclusively for the
purposes set forth in | 10 |
| Section 1A-107. Notwithstanding the provisions of
Section | 11 |
| 408.2 of the Illinois Insurance Code, no surplus funds | 12 |
| remaining in
this account shall be deposited in the Insurance | 13 |
| Financial Regulation Fund.
All money in this account that the | 14 |
| Director certifies is not needed for the
purposes set forth in | 15 |
| Section 1A-107 of this Code shall be transferred to the
Public | 16 |
| Pension Regulation Fund.
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| (f) Nothing in this Code prohibits the General Assembly | 18 |
| from appropriating
funds from the General Revenue Fund to the | 19 |
| Department for the purpose of
administering or enforcing this | 20 |
| Code.
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| (Source: P.A. 93-32, eff. 7-1-03.)
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| Section 99. Effective date. This Act takes effect upon | 23 |
| becoming law.
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