Full Text of SB2102 103rd General Assembly
SB2102ham001 103RD GENERAL ASSEMBLY | Rep. Natalie A. Manley Filed: 4/27/2023
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| 1 | | AMENDMENT TO SENATE BILL 2102
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2102 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 1A-104 as follows:
| 6 | | (40 ILCS 5/1A-104)
| 7 | | Sec. 1A-104. Examinations and investigations.
| 8 | | (a) Except as described in this Section the following | 9 | | paragraph with respect to pension funds established under | 10 | | Article 3 or 4 of this Code, the Division shall make periodic | 11 | | examinations and investigations of all
pension funds | 12 | | established under this Code and maintained for the benefit of
| 13 | | employees and officers of governmental units in the State of | 14 | | Illinois.
However, in lieu of making an examination and | 15 | | investigation, the Division
may accept and rely upon a report | 16 | | of audit or examination of any pension fund
made by an |
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| 1 | | independent certified public accountant pursuant to the | 2 | | provisions
of the Article of this Code governing the pension | 3 | | fund. The acceptance of the
report of audit or examination | 4 | | does not bar the Division from making a further
audit, | 5 | | examination, and investigation if deemed necessary by the | 6 | | Division.
| 7 | | For pension funds established under Article 3 or 4 of this | 8 | | Code: (i) prior to the conclusion of the transition period, | 9 | | the Division shall make the periodic examinations and | 10 | | investigations described in the preceding paragraph; and (ii) | 11 | | after the conclusion of the transition period, the Division | 12 | | may accept and rely upon a report of audit or examination of | 13 | | such pension fund made by an independent certified public | 14 | | accountant retained by the Consolidated Fund. The acceptance | 15 | | of the report of audit or examination does not bar the Division | 16 | | from making a further audit, examination, and investigation if | 17 | | deemed necessary by the Division. | 18 | | The Department may implement a flexible system of | 19 | | examinations under
which it directs resources as it deems | 20 | | necessary or appropriate. In
consultation with the pension | 21 | | fund being examined, the Division may retain
attorneys, | 22 | | independent actuaries, independent certified public | 23 | | accountants, and
other professionals and specialists as | 24 | | examiners, the cost of which (except in
the case of pension | 25 | | funds established under Article 3 or 4) shall be borne by
the | 26 | | pension fund that is the subject of the examination.
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| 1 | | (b) The Division or the Consolidated Fund , as appropriate, | 2 | | shall examine or investigate each pension fund established
| 3 | | under Article 3 or Article 4 of this Code. The schedule of each | 4 | | examination shall be such that each fund shall be examined | 5 | | once every 3 years.
| 6 | | Each examination shall include the following:
| 7 | | (1) an audit of financial transactions, investment | 8 | | policies, and
procedures;
| 9 | | (2) an examination of books, records, documents, | 10 | | files, and other
pertinent memoranda relating to | 11 | | financial, statistical, and administrative
operations;
| 12 | | (3) a review of policies and procedures maintained for | 13 | | the administration
and operation of the pension fund;
| 14 | | (4) a determination of whether or not full effect is | 15 | | being given to the
statutory provisions governing the | 16 | | operation of the pension fund;
| 17 | | (5) a determination of whether or not the | 18 | | administrative policies in force
are in accord with the | 19 | | purposes of the statutory provisions and effectively
| 20 | | protect and preserve the rights and equities of the | 21 | | participants;
| 22 | | (6) a determination of whether or not proper financial | 23 | | and statistical
records have been established and adequate | 24 | | documentary evidence is recorded and
maintained in support | 25 | | of the several types of annuity and benefit payments
being | 26 | | made; and
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| 1 | | (7) a determination of whether or not the calculations | 2 | | made by the fund for the payment of all annuities and | 3 | | benefits are accurate. | 4 | | In addition, the Division or the Consolidated Fund, as | 5 | | appropriate, may conduct investigations, which shall be
| 6 | | identified as such and which may include one or more of the | 7 | | items listed in
this subsection.
| 8 | | A copy of the report of examination or investigation as | 9 | | prepared by the
Division or the Consolidated Fund, as | 10 | | appropriate, shall be submitted to the secretary of the board | 11 | | of trustees of the
pension fund examined or investigated and | 12 | | to the chief executive officer of the municipality. The | 13 | | Director, upon request, shall grant
a hearing to the officers | 14 | | or trustees of the pension fund and to the officers or trustees | 15 | | of the Consolidated Fund, as appropriate, or their duly
| 16 | | appointed representatives, upon any facts contained in the | 17 | | report of
examination. The hearing shall be conducted before | 18 | | filing the report or making
public any information contained | 19 | | in the report. The Director may withhold the
report from | 20 | | public inspection for up to 60 days following the hearing.
| 21 | | (Source: P.A. 101-610, eff. 1-1-20.)
| 22 | | Section 99. Effective date. This Act takes effect July 1, | 23 | | 2023.".
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