SB2490sam001 100TH GENERAL ASSEMBLY

Sen. Pamela J. Althoff

Filed: 4/20/2018

 

 


 

 


 
10000SB2490sam001LRB100 15959 MJP 38982 a

1
AMENDMENT TO SENATE BILL 2490

2    AMENDMENT NO. ______. Amend Senate Bill 2490 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 1A-104 as follows:
 
6    (40 ILCS 5/1A-104)
7    Sec. 1A-104. Examinations and investigations.
8    (a) The Division shall make periodic examinations and
9investigations of all pension funds established under this Code
10and maintained for the benefit of employees and officers of
11governmental units in the State of Illinois. However, in lieu
12of making an examination and investigation, the Division may
13accept and rely upon a report of audit or examination of any
14pension fund made by an independent certified public accountant
15pursuant to the provisions of the Article of this Code
16governing the pension fund. The acceptance of the report of

 

 

10000SB2490sam001- 2 -LRB100 15959 MJP 38982 a

1audit or examination does not bar the Division from making a
2further audit, examination, and investigation if deemed
3necessary by the Division.
4    The Department may implement a flexible system of
5examinations under which it directs resources as it deems
6necessary or appropriate. In consultation with the pension fund
7being examined, the Division may retain attorneys, independent
8actuaries, independent certified public accountants, and other
9professionals and specialists as examiners, the cost of which
10(except in the case of pension funds established under Article
113 or 4) shall be borne by the pension fund that is the subject
12of the examination.
13    (b) The Division shall examine or investigate each pension
14fund established under Article 3 or Article 4 of this Code. The
15schedule of each examination shall be on a periodic basis as
16determined by the Division based on a risk review across funds.
17The risk review determination shall include, but not be limited
18to, the following criteria:
19        (1) the funding level of the pension fund;
20        (2) the employer contribution history;
21        (3) the investment return history of the fund;
22        (4) consideration of any complaints received from the
23    pension fund or its participants; and
24        (5) any previous compliance issues related to the fund
25    such that each fund shall be examined once every 3 years.
26    Each examination shall include, but not be limited to, a

 

 

10000SB2490sam001- 3 -LRB100 15959 MJP 38982 a

1review of the following:
2        (1) an audit of financial transactions, investment
3    policies, and procedures;
4        (2) an examination of books, records, documents,
5    files, and other pertinent memoranda relating to
6    financial, statistical, and administrative operations;
7        (3) a review of policies and procedures maintained for
8    the administration and operation of the pension fund;
9        (4) a determination of whether or not full effect is
10    being given to the statutory provisions governing the
11    operation of the pension fund, including the employer's
12    requirement to make a lawful contribution consistent with
13    Section 4-118;
14        (5) a determination of whether or not the
15    administrative policies in force are in accord with the
16    purposes of the statutory provisions and effectively
17    protect and preserve the rights and equities of the
18    participants;
19        (6) a determination of whether or not proper financial
20    and statistical records have been established and adequate
21    documentary evidence is recorded and maintained in support
22    of the several types of annuity and benefit payments being
23    made; and
24        (7) a determination of whether or not the calculations
25    made by the fund for the payment of all annuities and
26    benefits are accurate.

 

 

10000SB2490sam001- 4 -LRB100 15959 MJP 38982 a

1    In addition, the Division may conduct investigations,
2which shall be identified as such and which may include one or
3more of the items listed in this subsection.
4    A copy of the report of examination or investigation as
5prepared by the Division shall be submitted to the secretary of
6the board of trustees of the pension fund examined or
7investigated and to the chief executive officer of the
8municipality. The Director, upon request, shall grant a hearing
9to the officers or trustees of the pension fund or their duly
10appointed representatives, upon any facts contained in the
11report of examination. The hearing shall be conducted before
12filing the report or making public any information contained in
13the report. The Director may withhold the report from public
14inspection for up to 60 days following the hearing.
15(Source: P.A. 95-950, eff. 8-29-08.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.".