Full Text of HB3484 99th General Assembly
HB3484ham001 99TH GENERAL ASSEMBLY | Rep. Elaine Nekritz Filed: 3/19/2015
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| 1 | | AMENDMENT TO HOUSE BILL 3484
| 2 | | AMENDMENT NO. ______. Amend House Bill 3484 by replacing | 3 | | everything after the enacting clause with the following:
| 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, 9, | 11 | | 10, 11, 12, or 13 of the Illinois Pension Code or Division 1 of | 12 | | Article 22 of the Illinois Pension Code shall be entitled to a | 13 | | grant of State funds, on any account, against whom there shall | 14 | | be any then due and payable account or claim in favor of the | 15 | | pension fund or retirement system, upon certification by that | 16 | | entity, the Comptroller, upon notification thereof, shall |
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| 1 | | ascertain the amount due and payable, and draw a warrant on the | 2 | | treasury or on other funds held by the State Treasurer, stating | 3 | | the amount for which the party was entitled to a warrant or | 4 | | other payment, the amount deducted therefrom, and on what | 5 | | account, and directing the payment of the balance; which | 6 | | warrant or payment as so drawn shall be entered on the books of | 7 | | the Treasurer, and such balance only shall be paid. The | 8 | | Comptroller may deduct the entire amount due and payable to the | 9 | | retirement system or pension fund, or a portion of the amount | 10 | | due and payable to that entity, in accordance with this Section | 11 | | and the corresponding Section of the Illinois Pension Code | 12 | | authorizing such deductions. Whenever the Comptroller draws a | 13 | | warrant or makes a payment involving a deduction ordered under | 14 | | this Section, the Comptroller shall notify the participating | 15 | | employer and the retirement system or pension fund that | 16 | | submitted the voucher of the reason for the deduction. | 17 | | Section 10. The Illinois Pension Code is amended by | 18 | | changing Sections 7-195.1, 7-210, and 7-214 and by adding | 19 | | Sections 9-184.5, 10-107.5, 12-149.5, 13-503.5, and 22-104 as | 20 | | follows:
| 21 | | (40 ILCS 5/7-195.1) (from Ch. 108 1/2, par. 7-195.1)
| 22 | | Sec. 7-195.1. To establish and maintain a revolving | 23 | | account. To establish and maintain a revolving account in a | 24 | | bank or savings and
loan association, approved by the
State |
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| 1 | | Treasurer as a State depositary and having capital funds, | 2 | | represented
by capital, surplus, and undivided profits, of at | 3 | | least 5 million dollars,
for the purpose of making payments of | 4 | | annuities, benefits, and
administrative expenses and payments | 5 | | to the State Agency provided in
Section 7-170. All funds | 6 | | deposited in such account shall be placed in the
name of the | 7 | | Fund fund and shall be withdrawn only by a check or draft upon | 8 | | the
bank or savings and loan association signed by the | 9 | | president of the
board or the executive director, as the
board | 10 | | may direct. In case the president or executive director, whose
| 11 | | signature appears upon any check or draft, after attaching his | 12 | | signature
ceases to hold office before the delivery thereof to | 13 | | the payee, his
signature nevertheless shall be valid and | 14 | | sufficient for all purposes with
the same effect as if he had | 15 | | remained in office until delivery thereof. The
revolving | 16 | | account shall be created by resolution of the board. The State
| 17 | | Comptroller, upon receipt of a copy of such resolution and a | 18 | | voucher
designating the payment of $300,000 into the revolving | 19 | | account, shall draw
his warrant on the State Treasurer for | 20 | | payment of same to the Fund for
deposit in the revolving | 21 | | account. The monies in the revolving account shall
be held and | 22 | | expenditures shall be made by the Fund for the purposes herein
| 23 | | set forth. The Fund shall reimburse the revolving account for | 24 | | expenditures
for such purposes and the Comptroller, upon | 25 | | receipt of vouchers signed as
provided in Section 7-210 and | 26 | | including a statement of expenditures made
from the revolving |
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| 1 | | account, shall draw his warrant on the State Treasurer
for the | 2 | | payment of the amount of such expenditures to the Fund for | 3 | | deposit
in the revolving account .
| 4 | | No bank or savings and loan association shall receive | 5 | | investment funds
as permitted by this Section, unless it has | 6 | | complied with the requirements
established pursuant to Section | 7 | | 6 of the Public Funds Investment Act "An Act relating to | 8 | | certain investments
of public funds by public agencies", | 9 | | approved July 23, 1943 , as now or hereafter
amended. The | 10 | | limitations set forth in such Section 6 shall be applicable
| 11 | | only at the time of investment and shall not require the | 12 | | liquidation of
any investment at any time.
| 13 | | (Source: P.A. 83-541.)
| 14 | | (40 ILCS 5/7-210) (from Ch. 108 1/2, par. 7-210)
| 15 | | Sec. 7-210. Funds. | 16 | | (a) All money received by the board shall immediately be | 17 | | deposited with the custodian State Treasurer for the account of | 18 | | the Fund fund , or in the case of
funds received under Section | 19 | | 7-199.1, in a separate account maintained for
that purpose. All | 20 | | payments from the accounts of the Fund
shall be made by the | 21 | | custodian only, and only by a check or draft signed by the | 22 | | president of the
board or the executive director, as the
board | 23 | | may direct. Such checks and drafts All disbursements
of funds | 24 | | held by the State Treasurer shall be made only upon warrants
of | 25 | | the State Comptroller drawn upon the
Treasurer as custodian of |
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| 1 | | this fund upon vouchers signed by the person
or persons | 2 | | designated for such purpose by resolution of the board. The
| 3 | | Comptroller is authorized to draw such warrants upon vouchers | 4 | | so signed,
including warrants payable to the Fund for deposit | 5 | | in a revolving account
authorized by Section 7-195.1. The | 6 | | Treasurer shall accept all warrants
so signed and shall be | 7 | | released from liability for all payments made
thereon. Vouchers | 8 | | shall be drawn only upon proper authorization by the
board as | 9 | | properly recorded in the official minute books of the meetings
| 10 | | of the board.
| 11 | | (b) (Blank). All securities of the fund when received shall | 12 | | be deposited with
the State Treasurer who shall provide | 13 | | adequate safe deposit facilities
for their preservation and | 14 | | have custody of them.
| 15 | | (c) The assets of the Fund fund shall be invested as one | 16 | | fund, and no
particular person, municipality, or | 17 | | instrumentality thereof or
participating instrumentality shall | 18 | | have any right in any specific
security or in any item of cash | 19 | | other than an undivided interest in the
whole.
| 20 | | (d) Except as provided in subsection (d-5), whenever any | 21 | | employees of a municipality or participating
instrumentality | 22 | | have been or shall be excluded from participation in
this Fund | 23 | | fund by virtue of the application of paragraph b of Section | 24 | | 7-109
(2), the board shall issue a check or draft voucher | 25 | | authorizing the Comptroller to draw
his warrant upon the | 26 | | Treasurer as custodian of this fund in an amount
equal to the |
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| 1 | | accumulated contributions of such employees. Such check or | 2 | | draft warrant
shall be drawn in favor of the appropriate fund | 3 | | of the pension or retirement fund
in which such employees have | 4 | | or shall become participants. Such transfer
shall terminate any | 5 | | further rights of such employees under this Fund fund .
| 6 | | (d-5) Upon creation of a newly established Article 3 police | 7 | | pension fund by referendum under Section 3-145 or by census | 8 | | under Section 3-105, the following amounts shall be transferred | 9 | | from this Fund to the new police pension fund, within 30 days | 10 | | after an application therefor is received from the new pension | 11 | | fund: | 12 | | (1) the amounts actually contributed to this Fund as | 13 | | employee contributions by or on behalf of the police | 14 | | officers transferring to the new pension fund for their | 15 | | service as police officers of the municipality that is | 16 | | establishing the new pension fund, plus interest on those | 17 | | amounts at the rate of 6% per year, compounded annually, | 18 | | from the date of contribution to the date of transfer to | 19 | | the new pension fund, and | 20 | | (2) an amount representing employer contributions, | 21 | | equal to the total amount determined under item (1). | 22 | | This transfer
terminates any further rights of such police | 23 | | officers in this Fund arising out of their service as police | 24 | | officers of the municipality that is establishing the new | 25 | | pension fund. | 26 | | (e) If a participating instrumentality terminates |
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| 1 | | participation
because it fails to meet the requirements of | 2 | | Section 7-108, it shall
pay to the Fund fund the amount equal | 3 | | to any net debit balance in its
municipality reserve account | 4 | | and account receivable. Its successors, and
assigns and | 5 | | transferees of its assets shall be obligated to make this
| 6 | | payment to the extent of the value of assets transferred to | 7 | | them. The
Fund fund shall pay an amount equal to any net credit | 8 | | balance to the
participating instrumentality, its successors | 9 | | or assigns. Any remaining
net debit or credit balance not | 10 | | collectible or payable shall be
transferred to the terminated | 11 | | municipality reserve account. The Fund fund
shall pay to each | 12 | | employee of the participating instrumentality an
amount equal | 13 | | to his credits in the employee reserves. The employees
shall | 14 | | have no further rights to any benefits from the Fund fund , | 15 | | except that
annuities awarded prior to the date of termination | 16 | | shall continue to be
paid.
| 17 | | (Source: P.A. 98-729, eff. 7-26-14.)
| 18 | | (40 ILCS 5/7-214) (from Ch. 108 1/2, par. 7-214)
| 19 | | Sec. 7-214. Custodian State treasurer . The Board shall | 20 | | appoint one or more custodians to receive and hold the assets | 21 | | of the Fund on such terms as the Board may agree. The State | 22 | | Treasurer shall be the treasurer of the fund and shall be
| 23 | | responsible for the proper handling of all the assets of the | 24 | | fund in
accordance with this Article. He shall furnish a | 25 | | corporate surety bond of
such amount as the board designates, |
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| 1 | | which bond shall indemnify the board
against any loss which may | 2 | | result from any action or failure to act by the
treasurer or | 3 | | any of his agents. All charges incidental to the procuring and
| 4 | | giving of such bond shall be paid by the board.
| 5 | | (Source: Laws 1963, p. 161.)
| 6 | | (40 ILCS 5/9-184.5 new) | 7 | | Sec. 9-184.5. Delinquent contributions; deduction from | 8 | | grants of State funds to the county. If the county fails to | 9 | | transmit to the Fund contributions required of it under this | 10 | | Article by December 31st of the year in which such | 11 | | contributions are due, the Fund may, after giving notice to the | 12 | | county, certify to the State Comptroller the amounts of the | 13 | | delinquent payments, and the Comptroller must, beginning in | 14 | | payment year 2016, deduct and deposit into the Fund the | 15 | | certified amounts from grants of State funds to the county. | 16 | | The State Comptroller may not deduct from any grants of | 17 | | State funds to the county more than the amount of delinquent | 18 | | payments certified to the State Comptroller by the Fund. | 19 | | (40 ILCS 5/10-107.5 new) | 20 | | Sec. 10-107.5. Delinquent contributions; deduction from | 21 | | grants of State funds to the district. If the district fails to | 22 | | transmit to the Fund contributions required of it under this | 23 | | Article by December 31st of the year in which such | 24 | | contributions are due, the Fund may, after giving notice to the |
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| 1 | | district, certify to the State Comptroller the amounts of the | 2 | | delinquent payments, and the Comptroller must, beginning in | 3 | | payment year 2016, deduct and deposit into the Fund the | 4 | | certified amounts from grants of State funds to the district. | 5 | | The State Comptroller may not deduct from any grants of | 6 | | State funds to the district more than the amount of delinquent | 7 | | payments certified to the State Comptroller by the Fund. | 8 | | (40 ILCS 5/12-149.5 new) | 9 | | Sec. 12-149.5. Delinquent contributions; deduction from | 10 | | grants of State funds to the employer. If the employer fails to | 11 | | transmit to the Fund contributions required of it under this | 12 | | Article by December 31st of the year in which such | 13 | | contributions are due, the Fund may, after giving notice to the | 14 | | employer, certify to the State Comptroller the amounts of the | 15 | | delinquent payments, and the Comptroller must, beginning in | 16 | | payment year 2016, deduct and deposit into the Fund the | 17 | | certified amounts from grants of State funds to the employer. | 18 | | The State Comptroller may not deduct from any grants of | 19 | | State funds to the employer more than the amount of delinquent | 20 | | payments certified to the State Comptroller by the Fund. | 21 | | (40 ILCS 5/13-503.5 new) | 22 | | Sec. 13-503.5. Delinquent contributions; deduction from | 23 | | grants of State funds to the employer. If the employer fails to | 24 | | transmit to the Fund contributions required of it under this |
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| 1 | | Article by December 31st of the year in which such | 2 | | contributions are due, the Fund may, after giving notice to the | 3 | | employer, certify to the State Comptroller the amounts of the | 4 | | delinquent payments, and the Comptroller must, beginning in | 5 | | payment year 2016, deduct and deposit into the Fund the | 6 | | certified amounts from grants of State funds to the employer. | 7 | | The State Comptroller may not deduct from any grants of | 8 | | State funds to the employer more than the amount of delinquent | 9 | | payments certified to the State Comptroller by the Fund. | 10 | | (40 ILCS 5/22-104 new) | 11 | | Sec. 22-104. Delinquent contributions; deduction from | 12 | | grants of State funds to the employer. If an employer of | 13 | | participants in a pension fund or retirement plan subject to | 14 | | this Division fails to transmit contributions required of it by | 15 | | that pension fund or retirement plan by December 31st of the | 16 | | year in which such contributions are due, the pension fund or | 17 | | retirement plan may, after giving notice to the employer, | 18 | | certify to the State Comptroller the amounts of the delinquent | 19 | | payments, and the Comptroller must, beginning in payment year | 20 | | 2016, deduct and deposit into that pension fund or retirement | 21 | | plan the certified amounts from grants of State funds to the | 22 | | employer. | 23 | | The State Comptroller may not deduct from any grants of | 24 | | State funds to the employer more than the amount of delinquent | 25 | | payments certified to the State Comptroller by the employer.
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| 1 | | Section 99. Effective date. This Act takes effect July 1, | 2 | | 2015.".
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