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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The State Comptroller Act is amended by adding | ||||||||||||||||||||||||||||||
5 | Section 10-05e as follows: | ||||||||||||||||||||||||||||||
6 | (15 ILCS 405/10-05e new) | ||||||||||||||||||||||||||||||
7 | Sec. 10-05e. Deductions from amounts due to pension funds | ||||||||||||||||||||||||||||||
8 | or retirement systems; statement of reason for deduction. | ||||||||||||||||||||||||||||||
9 | Whenever an employer participating in any pension fund or | ||||||||||||||||||||||||||||||
10 | retirement system created under Article 3, 4, 5, 6, 7, 8, or 11 | ||||||||||||||||||||||||||||||
11 | of the Illinois Pension Code shall be entitled to a grant of | ||||||||||||||||||||||||||||||
12 | State funds, on any account, against whom there shall be any | ||||||||||||||||||||||||||||||
13 | then due and payable account or claim in favor of the pension | ||||||||||||||||||||||||||||||
14 | fund or retirement system, upon certification by that entity, | ||||||||||||||||||||||||||||||
15 | the Comptroller, upon notification thereof, shall ascertain | ||||||||||||||||||||||||||||||
16 | the amount due and payable, and draw a warrant on the treasury | ||||||||||||||||||||||||||||||
17 | or on other funds held by the State Treasurer, stating the | ||||||||||||||||||||||||||||||
18 | amount for which the party was entitled to a warrant or other | ||||||||||||||||||||||||||||||
19 | payment, the amount deducted therefrom, and on what account, | ||||||||||||||||||||||||||||||
20 | and directing the payment of the balance; which warrant or | ||||||||||||||||||||||||||||||
21 | payment as so drawn shall be entered on the books of the | ||||||||||||||||||||||||||||||
22 | Treasurer, and such balance only shall be paid. The Comptroller | ||||||||||||||||||||||||||||||
23 | may deduct the entire amount due and payable to the retirement |
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1 | system or pension fund, or a portion of the amount due and | ||||||
2 | payable to that entity, in accordance with this Section and the | ||||||
3 | corresponding Section of the Illinois Pension Code authorizing | ||||||
4 | such deductions. Whenever the Comptroller draws a warrant or | ||||||
5 | makes a payment involving a deduction ordered under this | ||||||
6 | Section, the Comptroller shall notify the participating | ||||||
7 | employer and the retirement system or pension fund that | ||||||
8 | submitted the voucher of the reason for the deduction. | ||||||
9 | Section 10. The Illinois Pension Code is amended by | ||||||
10 | changing Sections 7-195.1, 7-210, and 7-214 as follows:
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11 | (40 ILCS 5/7-195.1) (from Ch. 108 1/2, par. 7-195.1)
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12 | Sec. 7-195.1. To establish and maintain a revolving | ||||||
13 | account. To establish and maintain a revolving account in a | ||||||
14 | bank or savings and
loan association, approved by the
State | ||||||
15 | Treasurer as a State depositary and having capital funds, | ||||||
16 | represented
by capital, surplus, and undivided profits, of at | ||||||
17 | least 5 million dollars,
for the purpose of making payments of | ||||||
18 | annuities, benefits, and
administrative expenses and payments | ||||||
19 | to the State Agency provided in
Section 7-170. All funds | ||||||
20 | deposited in such account shall be placed in the
name of the | ||||||
21 | Fund fund and shall be withdrawn only by a check or draft upon | ||||||
22 | the
bank or savings and loan association signed by the | ||||||
23 | president of the
board or the executive director, as the
board | ||||||
24 | may direct. In case the president or executive director, whose
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1 | signature appears upon any check or draft, after attaching his | ||||||
2 | signature
ceases to hold office before the delivery thereof to | ||||||
3 | the payee, his
signature nevertheless shall be valid and | ||||||
4 | sufficient for all purposes with
the same effect as if he had | ||||||
5 | remained in office until delivery thereof. The
revolving | ||||||
6 | account shall be created by resolution of the board. The State
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7 | Comptroller, upon receipt of a copy of such resolution and a | ||||||
8 | voucher
designating the payment of $300,000 into the revolving | ||||||
9 | account, shall draw
his warrant on the State Treasurer for | ||||||
10 | payment of same to the Fund for
deposit in the revolving | ||||||
11 | account. The monies in the revolving account shall
be held and | ||||||
12 | expenditures shall be made by the Fund for the purposes herein
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13 | set forth. The Fund shall reimburse the revolving account for | ||||||
14 | expenditures
for such purposes and the Comptroller, upon | ||||||
15 | receipt of vouchers signed as
provided in Section 7-210 and | ||||||
16 | including a statement of expenditures made
from the revolving | ||||||
17 | account, shall draw his warrant on the State Treasurer
for the | ||||||
18 | payment of the amount of such expenditures to the Fund for | ||||||
19 | deposit
in the revolving account .
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20 | No bank or savings and loan association shall receive | ||||||
21 | investment funds
as permitted by this Section, unless it has | ||||||
22 | complied with the requirements
established pursuant to Section | ||||||
23 | 6 of the Public Funds Investment Act "An Act relating to | ||||||
24 | certain investments
of public funds by public agencies", | ||||||
25 | approved July 23, 1943 , as now or hereafter
amended. The | ||||||
26 | limitations set forth in such Section 6 shall be applicable
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1 | only at the time of investment and shall not require the | ||||||
2 | liquidation of
any investment at any time.
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3 | (Source: P.A. 83-541.)
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4 | (40 ILCS 5/7-210) (from Ch. 108 1/2, par. 7-210)
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5 | Sec. 7-210. Funds. | ||||||
6 | (a) All money received by the board shall immediately be | ||||||
7 | deposited with the custodian State Treasurer for the account of | ||||||
8 | the Fund fund , or in the case of
funds received under Section | ||||||
9 | 7-199.1, in a separate account maintained for
that purpose. All | ||||||
10 | payments from the accounts of the Fund
shall be made by the | ||||||
11 | custodian only, and only by a check or draft signed by the | ||||||
12 | president of the
board or the executive director, as the
board | ||||||
13 | may direct. Such checks and drafts All disbursements
of funds | ||||||
14 | held by the State Treasurer shall be made only upon warrants
of | ||||||
15 | the State Comptroller drawn upon the
Treasurer as custodian of | ||||||
16 | this fund upon vouchers signed by the person
or persons | ||||||
17 | designated for such purpose by resolution of the board. The
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18 | Comptroller is authorized to draw such warrants upon vouchers | ||||||
19 | so signed,
including warrants payable to the Fund for deposit | ||||||
20 | in a revolving account
authorized by Section 7-195.1. The | ||||||
21 | Treasurer shall accept all warrants
so signed and shall be | ||||||
22 | released from liability for all payments made
thereon. Vouchers | ||||||
23 | shall be drawn only upon proper authorization by the
board as | ||||||
24 | properly recorded in the official minute books of the meetings
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25 | of the board.
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1 | (b) (Blank). All securities of the fund when received shall | ||||||
2 | be deposited with
the State Treasurer who shall provide | ||||||
3 | adequate safe deposit facilities
for their preservation and | ||||||
4 | have custody of them.
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5 | (c) The assets of the Fund fund shall be invested as one | ||||||
6 | fund, and no
particular person, municipality, or | ||||||
7 | instrumentality thereof or
participating instrumentality shall | ||||||
8 | have any right in any specific
security or in any item of cash | ||||||
9 | other than an undivided interest in the
whole.
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10 | (d) Except as provided in subsection (d-5), whenever any | ||||||
11 | employees of a municipality or participating
instrumentality | ||||||
12 | have been or shall be excluded from participation in
this Fund | ||||||
13 | fund by virtue of the application of paragraph b of Section | ||||||
14 | 7-109
(2), the board shall issue a check or draft voucher | ||||||
15 | authorizing the Comptroller to draw
his warrant upon the | ||||||
16 | Treasurer as custodian of this fund in an amount
equal to the | ||||||
17 | accumulated contributions of such employees. Such check or | ||||||
18 | draft warrant
shall be drawn in favor of the appropriate fund | ||||||
19 | of the pension or retirement fund
in which such employees have | ||||||
20 | or shall become participants. Such transfer
shall terminate any | ||||||
21 | further rights of such employees under this Fund fund .
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22 | (d-5) Upon creation of a newly established Article 3 police | ||||||
23 | pension fund by referendum under Section 3-145 or by census | ||||||
24 | under Section 3-105, the following amounts shall be transferred | ||||||
25 | from this Fund to the new police pension fund, within 30 days | ||||||
26 | after an application therefor is received from the new pension |
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1 | fund: | ||||||
2 | (1) the amounts actually contributed to this Fund as | ||||||
3 | employee contributions by or on behalf of the police | ||||||
4 | officers transferring to the new pension fund for their | ||||||
5 | service as police officers of the municipality that is | ||||||
6 | establishing the new pension fund, plus interest on those | ||||||
7 | amounts at the rate of 6% per year, compounded annually, | ||||||
8 | from the date of contribution to the date of transfer to | ||||||
9 | the new pension fund, and | ||||||
10 | (2) an amount representing employer contributions, | ||||||
11 | equal to the total amount determined under item (1). | ||||||
12 | This transfer
terminates any further rights of such police | ||||||
13 | officers in this Fund arising out of their service as police | ||||||
14 | officers of the municipality that is establishing the new | ||||||
15 | pension fund. | ||||||
16 | (e) If a participating instrumentality terminates | ||||||
17 | participation
because it fails to meet the requirements of | ||||||
18 | Section 7-108, it shall
pay to the Fund fund the amount equal | ||||||
19 | to any net debit balance in its
municipality reserve account | ||||||
20 | and account receivable. Its successors, and
assigns and | ||||||
21 | transferees of its assets shall be obligated to make this
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22 | payment to the extent of the value of assets transferred to | ||||||
23 | them. The
Fund fund shall pay an amount equal to any net credit | ||||||
24 | balance to the
participating instrumentality, its successors | ||||||
25 | or assigns. Any remaining
net debit or credit balance not | ||||||
26 | collectible or payable shall be
transferred to the terminated |
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1 | municipality reserve account. The Fund fund
shall pay to each | ||||||
2 | employee of the participating instrumentality an
amount equal | ||||||
3 | to his credits in the employee reserves. The employees
shall | ||||||
4 | have no further rights to any benefits from the Fund fund , | ||||||
5 | except that
annuities awarded prior to the date of termination | ||||||
6 | shall continue to be
paid.
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7 | (Source: P.A. 98-729, eff. 7-26-14.)
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8 | (40 ILCS 5/7-214) (from Ch. 108 1/2, par. 7-214)
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9 | Sec. 7-214. Custodian State treasurer . The Board shall | ||||||
10 | appoint one or more custodians to receive and hold the assets | ||||||
11 | of the Fund on such terms as the Board may agree. The State | ||||||
12 | Treasurer shall be the treasurer of the fund and shall be
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13 | responsible for the proper handling of all the assets of the | ||||||
14 | fund in
accordance with this Article. He shall furnish a | ||||||
15 | corporate surety bond of
such amount as the board designates, | ||||||
16 | which bond shall indemnify the board
against any loss which may | ||||||
17 | result from any action or failure to act by the
treasurer or | ||||||
18 | any of his agents. All charges incidental to the procuring and
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19 | giving of such bond shall be paid by the board.
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20 | (Source: Laws 1963, p. 161.)
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21 | Section 99. Effective date. This Act takes effect July 1, | ||||||
22 | 2015.
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