Full Text of HB0971 96th General Assembly
HB0971 96TH GENERAL ASSEMBLY
|
|
|
96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB0971
Introduced 2/10/2009, by Rep. Mark H. Beaubien, Jr. SYNOPSIS AS INTRODUCED: |
|
|
Amends the Illinois Pension Code. Provides that, if a downstate police or fire pension fund has net assets of $10,000,000 or more and if it uses the services of an investment management consultant or an investment manager, then the pension fund's total investment in the specified types of investments shall not exceed 50% of the market value of the pension fund's net present assets stated in its most recent annual report on file with the Division of Insurance of the Department of Financial and Professional Regulation. Provides that, if a downstate police or fire pension fund has net assets of less than $10,000,000 or if does not use the services of an investment management consultant or an investment manager, then the pension fund's total investment in those types of investment shall not exceed 35% of the market value of the
pension fund's net present assets stated in its most recent annual report on
file with the Division of Insurance of the Department of Financial and Professional Regulation.
|
| |
|
|
| PENSION IMPACT NOTE ACT MAY APPLY | |
|
|
A BILL FOR
|
|
|
|
|
HB0971 |
|
LRB096 10674 AMC 20848 b |
|
| 1 |
| AN ACT concerning public employee benefits.
| 2 |
| Be it enacted by the People of the State of Illinois,
| 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Section 1-113.4 as follows:
| 6 |
| (40 ILCS 5/1-113.4)
| 7 |
| Sec. 1-113.4.
List of additional permitted investments for | 8 |
| pension funds
with net assets of $5,000,000 or more.
| 9 |
| (a) In addition to the items in Sections 1-113.2 and | 10 |
| 1-113.3, a pension fund
established under Article 3 or 4 that | 11 |
| has net assets of at least $5,000,000 and
has appointed an | 12 |
| investment adviser under Section 1-113.5 may, through that
| 13 |
| investment adviser, invest a portion of its assets in common | 14 |
| and preferred
stocks authorized for investments of trust funds | 15 |
| under the laws of the State
of Illinois. The stocks must meet | 16 |
| all of the following requirements:
| 17 |
| (1) The common stocks are listed on a national | 18 |
| securities exchange or
board of trade (as defined in the | 19 |
| federal Securities Exchange Act of 1934 and
set forth in | 20 |
| Section 3.G of the Illinois Securities Law of 1953) or | 21 |
| quoted in
the National Association of Securities Dealers | 22 |
| Automated Quotation System
National Market System (NASDAQ | 23 |
| NMS).
|
|
|
|
HB0971 |
- 2 - |
LRB096 10674 AMC 20848 b |
|
| 1 |
| (2) The securities are of a corporation created or | 2 |
| existing under the laws
of the United States or any state, | 3 |
| district, or territory thereof and the
corporation has been | 4 |
| in existence for at least 5 years.
| 5 |
| (3) The corporation has not been in arrears on payment | 6 |
| of dividends on its
preferred stock during the preceding 5 | 7 |
| years.
| 8 |
| (4) The market value of stock in any one corporation | 9 |
| does not exceed 5% of
the cash and invested assets of the | 10 |
| pension fund, and the investments in the
stock of any one | 11 |
| corporation do not exceed 5% of the total outstanding stock | 12 |
| of
that corporation.
| 13 |
| (5) The straight preferred stocks or convertible | 14 |
| preferred stocks are
issued or guaranteed by a corporation | 15 |
| whose common stock qualifies for
investment by the board.
| 16 |
| (6) The issuer of the stocks has been subject to the | 17 |
| requirements of
Section 12 of the federal Securities | 18 |
| Exchange Act of 1934 and has been current
with the filing | 19 |
| requirements of Sections 13 and 14 of that Act during the
| 20 |
| preceding 3 years.
| 21 |
| (b) If a pension fund established under Article 3 or 4 has | 22 |
| net assets of $10,000,000 or more and if it uses the services | 23 |
| of an investment management consultant or an investment | 24 |
| manager, then the pension fund's total investment in the items | 25 |
| authorized under this Section and Section 1-113.3 shall not | 26 |
| exceed 50% of the market value of the pension fund's net |
|
|
|
HB0971 |
- 3 - |
LRB096 10674 AMC 20848 b |
|
| 1 |
| present assets stated in its most recent annual report on file | 2 |
| with the Division of Insurance of the Department of Financial | 3 |
| and Professional Regulation. | 4 |
| If a pension fund established under Article 3 or 4 has net | 5 |
| assets of less than $10,000,000 or if does not use the services | 6 |
| of an investment management consultant or an investment | 7 |
| manager, then the A pension fund's total investment in the | 8 |
| items authorized under this
Section and Section 1-113.3 shall | 9 |
| not exceed 35% of the market value of the
pension fund's net | 10 |
| present assets stated in its most recent annual report on
file | 11 |
| with the Division of Insurance of the Department of Financial | 12 |
| and Professional Regulation Illinois Department of Insurance .
| 13 |
| (c) A pension fund that invests funds under this Section | 14 |
| shall
electronically file with the Division any reports of its | 15 |
| investment activities
that the Division may require, at the | 16 |
| times and in the format required by the
Division.
| 17 |
| (Source: P.A. 90-507, eff. 8-22-97.)
|
|