Full Text of SB0134 94th General Assembly
SB0134 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB0134
Introduced 2/1/2005, by Sen. James F. Clayborne, Jr. SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/7-190 |
from Ch. 108 1/2, par. 7-190 |
40 ILCS 5/7-201 |
from Ch. 108 1/2, par. 7-201 |
40 ILCS 5/7-201.1 |
from Ch. 108 1/2, par. 7-201.1 |
40 ILCS 5/22A-113 |
from Ch. 108 1/2, par. 22A-113 |
40 ILCS 5/7-188 rep. |
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40 ILCS 5/7-195 rep. |
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Amends the Illinois Pension Code to place the investment authority of the Illinois Municipal Retirement Fund under the Illinois State Board of Investment, beginning no later than January 1, 2006. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
PENSION IMPACT NOTE ACT MAY APPLY |
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A BILL FOR
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SB0134 |
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LRB094 07114 EFG 37259 b |
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| AN ACT concerning public employee benefits.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing | 5 |
| Sections 7-190, 7-201, 7-201.1, and 22A-113 as follows:
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| (40 ILCS 5/7-190) (from Ch. 108 1/2, par. 7-190)
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| Sec. 7-190. To fix compensation of employees. To determine | 8 |
| and fix the rate of compensation to be paid to the
executive | 9 |
| director, actuary, investment counsel (until January 1, 2006) , | 10 |
| auditor, legal or medical
counsel, and employees.
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| (Source: Laws 1963, p. 161.)
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| (40 ILCS 5/7-201) (from Ch. 108 1/2, par. 7-201)
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| Sec. 7-201. Investment authority.
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| (a) This subsection (a) applies until the date on which the | 15 |
| investments of the Fund are transferred to the Illinois State | 16 |
| Board of Investment in accordance with Section 7-201.1, but in | 17 |
| no event later than January 1, 2006. | 18 |
| The assets of the fund in excess of the amount of
cash | 19 |
| required for current operation as determined by the board shall | 20 |
| be
invested, subject to the requirements and restrictions set | 21 |
| forth in Sections
1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 | 22 |
| and 1-115 of this Code.
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| No bank or savings and loan association shall receive | 24 |
| investment funds
as permitted by this Section, unless it has | 25 |
| complied with the requirements
established pursuant to Section | 26 |
| 6 of "An Act relating to certain
investments of public funds by | 27 |
| public agencies", approved July 23, 1943, as
now or hereafter | 28 |
| amended. The limitations set forth in such Section 6
shall be | 29 |
| applicable only at the time of investment and shall not require
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| the liquidation of any investment at any time.
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| The board may sell any security belonging to the fund at |
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| any time in
its judgment that it is necessary or desirable to | 2 |
| do so.
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| The board shall have the authority to enter into such | 4 |
| agreements and to
execute such documents as it determines to be | 5 |
| necessary to complete any
investment transaction.
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| All investments shall be clearly held and accounted for to | 7 |
| indicate ownership
by the board. The board may direct the | 8 |
| registration of securities or the
holding of interests in real | 9 |
| property in its own name or in the name of a
nominee created | 10 |
| for the express purpose of registration of securities or
the | 11 |
| holding of interests in real property by a savings and loan
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| association or national or State bank or trust company | 13 |
| authorized to
conduct a trust business in the State of | 14 |
| Illinois. The
board may hold title to interests in real | 15 |
| property in the name of the Fund
or in the name of a title | 16 |
| holding corporation created for the express
purpose of holding | 17 |
| title to interests in real property.
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| Investments shall be carried at cost or at a book value in | 19 |
| accordance with
generally accepted accounting principles and | 20 |
| accounting procedures approved
by the board.
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| The book value of investments held by any pension fund or | 22 |
| retirement system
in one or more commingled investment accounts | 23 |
| shall be the cost of its units
of participation in such | 24 |
| commingled account or accounts as recorded on the
books of the | 25 |
| board.
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| (b) Beginning on the date on which the investments of the | 27 |
| Fund are transferred to the Illinois State Board of Investment | 28 |
| in accordance with Section 7-201.1, but in no event later than | 29 |
| January 1, 2006, the authority to invest the assets of the Fund | 30 |
| is vested in the Illinois State Board of Investment under | 31 |
| Article 22A of this Code.
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| (Source: P.A. 89-136, eff. 7-14-95.)
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| (40 ILCS 5/7-201.1) (from Ch. 108 1/2, par. 7-201.1)
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| Sec. 7-201.1. Participation in commingled investment | 35 |
| funds- Transfer of
investment functions and securities. |
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| (a) (Blank).
The retirement board may invest in any | 2 |
| commingled investment fund or
funds established and maintained | 3 |
| by the Illinois State Board of Investment
under the provisions | 4 |
| of Article 22A of this Code. The book value of all
commingled | 5 |
| equity participations plus the book value of other stock
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| investments owned by this system shall not exceed the maximum | 7 |
| permissible
percentage rate for equity investments prescribed | 8 |
| in Section 7-201. All
commingled fund participations shall be | 9 |
| subject to the law governing the
Illinois State Board of | 10 |
| Investment and the rules, policies and directives
of that | 11 |
| Board.
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| (b) On or before January 1, 2006, the
The retirement board | 13 |
| shall
may, by resolution duly adopted by a majority
vote of its | 14 |
| membership, transfer to the Illinois State Board of Investment
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| created by Article 22A of this Code, for management and | 16 |
| administration, all
investments owned by the Fund of every kind | 17 |
| and character. Upon completion
of such transfer, the authority | 18 |
| of the retirement board to make investments
shall terminate. | 19 |
| Thereafter, all investments of the reserves of the Fund
shall | 20 |
| be made by the Illinois State Board of Investment in accordance | 21 |
| with
the provisions of Article 22A of this Code.
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| Such transfer shall be made not later than the first day of | 23 |
| the fourth
month next following the date of such resolution.
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| Before such transfer an
audit of such investments shall be | 25 |
| completed by a certified public
accountant selected by the | 26 |
| Illinois State Board of Investment and approved
by the Auditor | 27 |
| General of the State of Illinois. The expense of such audit
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| shall be defrayed by the retirement board.
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| (Source: P.A. 78-645.)
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| (40 ILCS 5/22A-113) (from Ch. 108 1/2, par. 22A-113)
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| Sec. 22A-113. Transfer of securities and investment | 32 |
| functions.
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| (a) As soon as possible or practicable following the | 34 |
| enactment of this
Article and prior to July 1, 1970, the | 35 |
| trustees of the State Employees'
Retirement System, the General |
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| Assembly Retirement System and the Judges
Retirement System, | 2 |
| shall transfer to this board for management and
investment all | 3 |
| of their securities or for which commitments have been made,
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| and all funds, assets or moneys representing permanent or | 5 |
| temporary
investments, or cash reserves maintained for the | 6 |
| purpose of obtaining
income thereon.
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| (a-5) On or before January 1, 2006, the retirement board of | 8 |
| the Illinois Municipal Retirement Fund shall transfer to this | 9 |
| Board for management and
investment all
investments owned by | 10 |
| the Fund of every kind and character.
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| (b) The board of trustees or retirement board of any | 12 |
| pension fund or
retirement system electing to come under the | 13 |
| authority of the Illinois
State Board of Investment for the | 14 |
| management of its investments and the
performance of investment | 15 |
| functions previously performed by such board of
that pension | 16 |
| fund or retirement system shall effect a transfer of
securities | 17 |
| and other assets thereof not later than the first day of the | 18 |
| 4th
month next following the date of such election , or as | 19 |
| otherwise provided by law, after completion of an audit
by a | 20 |
| certified public accountant of such securities and other assets | 21 |
| as
authorized by the Illinois State Board of Investment and | 22 |
| approved by the
Auditor General of the State, the expense of | 23 |
| which shall be assumed by the
pension fund or retirement | 24 |
| system. Upon such transfer, the authority of the
The
Illinois | 25 |
| State Board of Investment in the case of such pension fund or
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| retirement system is effective. These transfers shall be | 27 |
| receipted for in
detail by the Chairman and director of the | 28 |
| board.
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| (c) The board of trustees or retirement board of any | 30 |
| pension fund or
retirement system authorized under the Illinois | 31 |
| Pension Code to participate
in any commingled investment fund | 32 |
| or funds established and managed by the
Illinois State Board of | 33 |
| Investment under this Article may invest in such
commingled | 34 |
| investment fund or funds upon written notice to the Illinois
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| State Board of Investment. The board of trustees of the | 36 |
| Illinois Bank
Examiners' Education Foundation is authorized to |
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| participate in any
commingled investment fund or funds | 2 |
| established and managed by the Illinois
State Board of | 3 |
| Investment upon providing written notice to the Illinois
State | 4 |
| Board of Investment. Any participation in a commingled fund and | 5 |
| the
management thereof shall be in accordance with the | 6 |
| governing law and the
rules, policies and directives of the | 7 |
| Illinois State Board of Investment.
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| (Source: P.A. 84-1127.)
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| (40 ILCS 5/7-188 rep.)
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| (40 ILCS 5/7-195 rep.)
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| Section 10. The Illinois Pension Code is amended by | 12 |
| repealing Sections 7-188 and 7-195 on January 1, 2006.
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| Section 99. Effective date. This Act takes effect upon | 14 |
| becoming law.
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