Full Text of SB1613 97th General Assembly
SB1613ham001 97TH GENERAL ASSEMBLY | Rep. Joseph M. Lyons Filed: 5/17/2011
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| 1 | | AMENDMENT TO SENATE BILL 1613
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1613 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 1-107 and by adding Sections 1-109.3 and | 6 | | 1-113.18 as follows:
| 7 | | (40 ILCS 5/1-107) (from Ch. 108 1/2, par. 1-107)
| 8 | | Sec. 1-107. Indemnification of trustees, consultants and | 9 | | employees of
retirement systems and pension funds. | 10 | | (a) Every retirement system, pension fund, or other system | 11 | | or fund established under this Code, other than a retirement | 12 | | system established under Article 2, 14, 15, 16, or 18 of this | 13 | | Code or the investment board established under Article 22A of | 14 | | this Code, must indemnify and protect the trustees against all | 15 | | damage claims and suits, including defense thereof, when | 16 | | damages are sought for negligent or wrongful acts alleged to |
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| 1 | | have been committed in the scope of their powers and duties as | 2 | | trustees. | 3 | | Every retirement system established under Article 2, 14, | 4 | | 15, 16, or 18 of this Code may indemnify and protect the | 5 | | trustees against all damage claims and suits, including defense | 6 | | thereof, when damages are sought for negligent or wrongful acts | 7 | | alleged to have been committed in the scope of their powers and | 8 | | duties as trustees. | 9 | | The investment board established under Article 22A of this | 10 | | Code may indemnify and protect its members against all damage | 11 | | claims and suits, including defense thereof, when damages are | 12 | | sought for negligent or wrongful acts alleged to have been | 13 | | committed in the scope of their powers and duties as members. | 14 | | Notwithstanding any other provision of this subsection | 15 | | (a), trustees and board members shall not be indemnified for | 16 | | willful misconduct and gross negligence. | 17 | | (b) Except as provided in subsection (a), every Every | 18 | | retirement system, pension
fund or other system or fund | 19 | | established under this Code may indemnify and
protect the | 20 | | trustees, staff and consultants against all damage claims
and | 21 | | suits, including defense thereof, when damages are sought for | 22 | | negligent
or wrongful acts alleged to have been committed in | 23 | | the scope of employment
or under the direction of the trustees. | 24 | | However, the trustees, staff and
consultants shall not be | 25 | | indemnified for willful wilful misconduct and gross | 26 | | negligence.
Each board is authorized to insure against loss or |
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| 1 | | liability of the trustees,
staff and consultants which may | 2 | | result from these damage claims. This insurance
shall be | 3 | | carried in a company which is licensed to write such coverage | 4 | | in this State.
| 5 | | (Source: P.A. 80-1364.)
| 6 | | (40 ILCS 5/1-109.3) | 7 | | Sec. 1-109.3. Training requirement for pension trustees. | 8 | | (a) All elected and appointed trustees under Article 3 and | 9 | | 4 of this Code must participate in a mandatory trustee | 10 | | certification training seminar that consists of at least 32 | 11 | | hours of initial trustee certification at a training facility | 12 | | that is accredited and affiliated with a State of Illinois | 13 | | certified college or university. This training must include | 14 | | without limitation all of the following: | 15 | | (1) Duties and liabilities of a fiduciary under Article | 16 | | 1 of the Illinois Pension Code. | 17 | | (2) Adjudication of pension claims. | 18 | | (3) Basic accounting and actuarial training. | 19 | | (4) Trustee ethics. | 20 | | (5) The Illinois Open Meetings Act. | 21 | | (6) The Illinois Freedom of Information Act. | 22 | | The training required under this subsection (a) must be | 23 | | completed within the first 2 years after the year that a | 24 | | trustee takes office is elected or appointed under an Article 3 | 25 | | or 4 pension fund. The elected and appointed trustees of an |
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| 1 | | Article 3 or 4 pension fund who are police officers (as defined | 2 | | in Section 3-106 of this Code) or firefighters (as defined in | 3 | | Section 4-106 of this Code) or are employed by the municipality | 4 | | shall be permitted time away from their duties to attend such | 5 | | training without reduction of accrued leave or benefit time. | 6 | | Active or appointed trustees serving on the effective date of | 7 | | this amendatory Act of the 96th General Assembly shall not be | 8 | | required to attend the training required under this subsection | 9 | | (a). | 10 | | (b) Upon completion of, and in In addition to , the initial | 11 | | trustee certification training required under subsection (a), | 12 | | all elected and appointed trustees under Article 3 and 4 of | 13 | | this Code , including trustees serving on the effective date of | 14 | | this amendatory Act of the 96th General Assembly, shall also | 15 | | complete at least an additional participate in a minimum of 16 | 16 | | hours of continuing trustee education during (i) the 2 years | 17 | | following the date by which the training required under | 18 | | subsection (a) must be completed and (ii) every 2 years | 19 | | thereafter each year after the first year that the trustee is | 20 | | elected or appointed . Ethics training completed under Section | 21 | | 1-113.18 may be applied toward the hours required under this | 22 | | subsection (b). | 23 | | (c) The training required under this Section shall be paid | 24 | | for by the pension fund. | 25 | | (d) Any board member who does not timely complete the | 26 | | training required under this Section is not eligible to serve |
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| 1 | | on the board of trustees of an Article 3 or 4 pension fund, | 2 | | unless the board member completes the missed training within 6 | 3 | | months after the date the member failed to complete the | 4 | | required training. In the event of a board member's failure to | 5 | | complete the required training, a successor shall be appointed | 6 | | or elected, as applicable, for the unexpired term. A successor | 7 | | who is elected under such circumstances must be elected at a | 8 | | special election called by the board and conducted in the same | 9 | | manner as a regular election under Article 3 or 4, as | 10 | | applicable.
| 11 | | (Source: P.A. 96-429, eff. 8-13-09.) | 12 | | (40 ILCS 5/1-113.18)
| 13 | | Sec. 1-113.18. Ethics training. All board members of a | 14 | | retirement system, pension fund, or investment board created | 15 | | under this Code must attend ethics training of at least 8 hours | 16 | | every 2 years per year . The training required under this | 17 | | Section shall include training on ethics, fiduciary duty, and | 18 | | investment issues and any other curriculum that the board of | 19 | | the retirement system, pension fund, or investment board | 20 | | establishes as being important for the administration of the | 21 | | retirement system, pension fund, or investment board. The | 22 | | Supreme Court of Illinois shall be responsible for ethics | 23 | | training and curriculum for judges designated by the Court to | 24 | | serve as members of a retirement system, pension fund, or | 25 | | investment board.
Each board shall annually certify its |
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| 1 | | members' compliance with this Section and submit an annual | 2 | | certification to the Division of Insurance of the Department of | 3 | | Financial and Professional Regulation. Judges shall annually | 4 | | certify compliance with the ethics training requirement and | 5 | | shall submit an annual certification to the Chief Justice of | 6 | | the Supreme Court of Illinois. Ethics training completed under | 7 | | this Section may be applied toward the continuing education | 8 | | requirement in subsection (b) of Section 1-109.3.
| 9 | | (Source: P.A. 96-6, eff. 4-3-09.) | 10 | | Section 90. The State Mandates Act is amended by adding | 11 | | Section 8.35 as follows: | 12 | | (30 ILCS 805/8.35 new) | 13 | | Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 | 14 | | of this Act, no reimbursement by the State is required for the | 15 | | implementation of any mandate created by this amendatory Act of | 16 | | the 97th General Assembly.
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.".
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