(40 ILCS 5/1-109.2) (from Ch. 108 1/2, par. 1-109.2)
Sec. 1-109.2.
Extent of Cofiduciary Duties.
(a) (1) Except to the extent
otherwise required in subsection (b) of this Section, a fiduciary of a
retirement
system or pension fund to whom a specified duty has not been allocated shall
not be responsible or liable for an act or omission, in connection with
that duty, by the fiduciary to whom that duty has been allocated, except
to the extent that the allocation, or the continuation thereof, is a violation
of Section 1-109 of this Code. Nothing in this paragraph (1) shall be
construed
to relieve a fiduciary from responsibility or liability for any act by that
fiduciary.
(2) Except to the extent otherwise required in subsection (b) of this
Section a fiduciary shall not be responsible or liable for an act or omission,
in connection with a specific fiduciary activity, by any other person who
has been designated to carry out that fiduciary activity, except to the
extent that the designation, or the continuation thereof at any time under
the circumstances then prevailing, is a violation of Section 1-109 of this
Code. Nothing in this paragraph (2) shall be construed to relieve a fiduciary
from responsibility for any act by that fiduciary.
(b) With respect to any retirement system or pension fund established under this Code:
(1) Each trustee shall use reasonable care to prevent any other trustee
from committing a breach of duty; and
(2) Subject to the provisions of Section 22A-113 of this Code, all trustees
shall jointly manage and control the assets of the retirement system or pension fund.
Nothing in this subsection (b) shall be construed to attribute a duty to
a trustee which would be inconsistent with the appointment of, and delegation
of authority to, an investment manager in accordance with paragraph (a)
of Section 1-109.1 of this Code.
(Source: P.A. 82-960.)
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