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90_HB0372eng 40 ILCS 5/17-115 from Ch. 108 1/2, par. 17-115 40 ILCS 5/17-117 from Ch. 108 1/2, par. 17-117 40 ILCS 5/17-117.1 from Ch. 108 1/2, par. 17-117.1 40 ILCS 5/17-120 from Ch. 108 1/2, par. 17-120 40 ILCS 5/17-122 from Ch. 108 1/2, par. 17-122 40 ILCS 5/17-134 from Ch. 108 1/2, par. 17-134 40 ILCS 5/17-146 from Ch. 108 1/2, par. 17-146 40 ILCS 5/17-146.1 from Ch. 108 1/2, par. 17-146.1 30 ILCS 805/8.21 new Amends the Chicago Teacher Article of the Illinois Pension Code. Deletes a limitation on investment in stocks and convertible debt. Changes provisions relating to the manner of determining the value of the Fund's investments. Restores full payment of the retirement annuity for certain persons who elected reversionary annuities before January 1, 1984, where the beneficiary has predeceased the retiree. Requires filing of a claim with the Industrial Commission before applying for a duty disability benefit. Makes other administrative and technical changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately. LRB9001754EGfg HB0372 Engrossed LRB9001754EGfg 1 AN ACT to amend the Illinois Pension Code by changing 2 Sections 17-115, 17-117, 17-117.1, 17-120, 17-122, 17-134, 3 17-146, and 17-146.1 and to amend the State Mandates Act. 4 Be it enacted by the People of the State of Illinois, 5 represented in the General Assembly: 6 Section 5. The Illinois Pension Code is amended by 7 changing Sections 17-115, 17-117, 17-117.1, 17-120, 17-122, 8 17-134, 17-146, and 17-146.1 as follows: 9 (40 ILCS 5/17-115) (from Ch. 108 1/2, par. 17-115) 10 Sec. 17-115. Eligibility for service retirement pension. 11 (a) The Board shall find a contributor eligible for 12 service retirement pension when he has: 13 (1)
1.Left the employment of the Board of 14 Education or the board after completing 5 or more years 15 of service , or has been retired compulsorily as a regular16 teacher because of age. 17 (2) 2.Contributed to the fund the total sums 18 provided in this Article. 19 (3) 3.Contributed as a member of the teaching 20 force in the public schools of the City or to the State 21 Universities Retirement System or to the Teachers' 22 Retirement System of the State of Illinois during the 23 last 5 years of his term of service. 24 (4) 4.Filed a written application for pension. 25 (b) In computing the years of service for which annuity 26 is granted, the following conditions shall apply: 27 (1) 1.No more than 10 years of teaching service in 28 public schools of the several states or in schools 29 operated by or under the auspices of the United States 30 shall be allowed. This maximum shall be reduced by the 31 service credit which is validated under paragraph (i) of HB0372 Engrossed -2- LRB9001754EGfg 1 Section 15-113 and paragraph (3) of Section 16-127 of 2 this Code. Three-fifths of the term of service for which 3 an annuity is granted shall have been rendered in the 4 public schools of the city. No portion of any such 5 service shall be included in the total period of service 6 for which a pension is payable or paid by some other 7 public retirement system; provided that this shall not 8 apply to any benefit payable only after the teacher's 9 death or to any compensation or annuity paid by the Board 10 of Education after retirement from active service. 11 (2) 2.Up to No more than5 years of military 12 active service, if preceded by service as a teacher under 13 this fund or under Article 16, shall be included in the 14 total period of service even though it can otherwise be 15 used in the computation of a pension or other benefit 16 provided for service in any branch of the armed forces of 17 the United States. 18 (Source: P.A. 83-803.) 19 (40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117) 20 Sec. 17-117. Disability retirement pension. 21 (a) The conditions prescribed in items 1 and 2 in 22 Section 17-116 for computing service retirement pensions 23 shall apply in the computation of disability retirement 24 pensions. 25 (1) 1.Each teacher retired or retiring after 10 26 years of service and with less than 20 years of service 27 because of permanent disability not incurred as a 28 proximate result of the performance of duty shall receive 29 a disability retirement pension equal to 1 2/3% of 30 average salary for each year of service. 31 (2) 2.If the total service is 20 years and less 32 than 25 years and the teacher's age is under 55, the 33 disability retirement pension shall equal a service HB0372 Engrossed -3- LRB9001754EGfg 1 retirement pension discounted 1/2 of 1% for each month 2 the age of the contributor is less than 55 down to a 3 minimum age of 50 years, provided the disability 4 retirement pension so computed shall not be less than the 5 amount payable under paragraph 1. 6 (3) 3.If the total service is 20 years or more and 7 the teacher has attained age 55, and is under age 60, a 8 disability retirement pension shall equal a service 9 retirement pension without discount. 10 (4) 4.If the total service is 25 years or more 11 regardless of age, a disability pension shall equal a 12 service retirement pension without discount. 13 (5) 5.If the total service is 20 years or more and 14 the teacher is age 60 or over, a service retirement 15 pension shall be payable. 16 (b) For disability retirement pensions, the following 17 further conditions shall apply: 18 (1) 1.Written application shall be submitted 19 within 3 years from the date of separation. 20 (2) 2.The applicant shall submit to examination by 21 physicians appointed by the board within one year from 22 the date of their appointment. 23 (3) 3.Two physicians, appointed by the board, 24 shall declare the applicant to be suffering from a 25 disability which wholly and presumably permanently 26 incapacitates him for teaching or for service as an 27 employee of the board. In the event of disagreement by 28 the physicians, a third physician, appointed by the 29 board, shall declare the applicant wholly and presumably 30 permanently incapacitated. 31 (c) Disability retirement pensions shall begin on the 32 effective date of resignation or the day following the close 33 of the payroll period for which credit was validated, 34 whichever is later. HB0372 Engrossed -4- LRB9001754EGfg 1 (Source: P.A. 86-1488.) 2 (40 ILCS 5/17-117.1) (from Ch. 108 1/2, par. 17-117.1) 3 Sec. 17-117.1. Duty disability. A teacher who becomes 4 wholly and presumably permanently totallyincapacitated for 5 duty while under age 65 as the proximate result of injuries 6 sustained or a hazardous condition encountered in the 7 performance and within the scope of his duties, if such 8 injury or hazard was not the result of his own negligence, 9 shall be entitled to a duty disability benefit, provided: 10 (1) application for the benefit is made to the 11 Board not more than 6 months after a final settlement or 12 an award from the Industrial Commission or within 6 13 months of the manifestation of an injury or illness that 14 can be traced directly to an injury or illness for which 15 a claim was filed with the Industrial Commission the16 occurrence of an injury disability or 6 months after the17 occurrence of disablement if an occupational disease; 18 (2) certification is received from 2 or more 19 physicians designated by the board that the teacher is 20 physically incapacitated for teaching service; and 21 (3) the teacher provides the Board with a copy of 22 the notice of the occurrence that was filed with the 23 Board of Education within the time provided by law 24 resulting in disability is filed with the board within 9025 days of the date thereof. 26 The benefit shall be payable during disability and shall 27 be 75% of the salary in effect at date of disability, payable 28 until the teacher's attainment of age 65. At such time if 29 disability still exists, the teacher shall become entitled to 30 a service retirement pension. Creditable service shall accrue 31 during the period the disability benefit is payable. 32 Before any action is taken by the board on an application 33 for a duty disability benefit, the teacher shall file a claim HB0372 Engrossed -5- LRB9001754EGfg 1 with the Industrial Commission to establish that the 2 disability was incurred while the teacher was acting within 3 the scope of and in the course of his duties under the terms 4 of the Workers' Compensation or Occupational Diseases Acts, 5 whichever may be applicable. The benefit shall be payable 6 after a finding by the Commission that the claim was 7 compensable under either of the aforesaid Acts; but if such 8 finding is appealed the benefit shall be payable only upon 9 affirmance of the Commission's finding. After the teacher has 10 made timely application for a duty disability benefit 11 supported by the certificate of two or more physicians, he 12 shall be entitled to a disability retirement pension provided 13 in Section 17-117 of this Act until such time as the 14 Industrial Commission award finding that his disability is 15 duty-connected as provided in this Section becomes final. 16 Any amounts provided for the teacher under such Acts 17 shall be applied as an offset to the duty disability benefit 18 payable hereunder in such manner as may be prescribed by the 19 rules of the board. 20 (Source: P.A. 81-992.) 21 (40 ILCS 5/17-120) (from Ch. 108 1/2, par. 17-120) 22 Sec. 17-120. Reversionary pension. Any contributor, at 23 any time prior to retirement on a service retirement pension, 24 may exercise an option of taking a lesser amount of service 25 retirement pension and providing with the remainder of his 26 equity, determined on an actuarial equivalent basis, a 27 reversionary pension benefit for any person named in a 28 written designation filed by the contributor with the board, 29 provided that the pension resulting from such election is not 30 less than $40 per month, or more than the reduced pension 31 payable after the exercise of the option. If the reduced 32 pension to the retired teacher is less than that provided for 33 a beneficiary, whether or not the aforesaid minimum amount is HB0372 Engrossed -6- LRB9001754EGfg 1 payable, the election shall be void. 2 The pension to a beneficiary shall begin on the first day 3 of the month next following the month in which the retired 4 teacher dies. 5 If the beneficiary survives the date of retirement of the 6 teacher, but does not survive the retired teacher, no 7 reversionary pensions shall be payable, and no change shall8 be made in the rate of pension granted previously to the9 retired teacher if the reversionary annuity was elected prior10 to January 1, 1984. If the reversionary annuity was elected11 on or after January 1, 1984 and the beneficiary survives the12 date of retirement of the teacher, but does not survive the13 retired teacher,the teacher's service pension shall be 14 restored to the full service pension amount beginning on the 15 first day of the month next following the month in which the 16 beneficiary dies or on the effective date of this amendatory 17 Act of 1997, whichever occurs later , provided that the Board18 adopts actuarial factors that take into account the19 additional cost involved. 20 If the beneficiary dies after the suchelection but 21 before the retirement of the teacher, the election shall be 22 void. No change shall be permitted in the written 23 designation filed with the board. 24 In the case of a reversionary annuity elected on or after 25 January 1, 1984, no reversionary annuity shall be paid if the 26 teacher dies before the expiration of 730 days from the date 27 that a written designation was filed with the board, even 28 though the teacher was receiving a reduced annuity. 29 Sections 1-103.1 and 17-157 do not apply to the changes 30 made to this Section by this amendatory Act of 1997. 31 (Source: P.A. 83-812.) 32 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122) 33 Sec. 17-122. Survivor's and children's pensions - Amount. HB0372 Engrossed -7- LRB9001754EGfg 1 Upon the death of a teacher who has completed at least 1 1/2 2 years of contributing service with either this Fund or the 3 State Universities Retirement System or the Teachers' 4 Retirement System of the State of Illinois, provided his 5 death occurred while (a) in active service covered by the 6 fund or during his first 18 months of continuous employment 7 without a break in service under any other participating 8 system as defined in the Illinois Retirement Systems 9 Reciprocal Act except the State Universities Retirement 10 System and the Teachers' Retirement System of the State of 11 Illinois, (b) on a creditable leave of absence, (c) on a 12 noncreditable leave of absence of no more than one year, or 13 (d) a pension was deferred or pending provided the teacher 14 had at least 10 years of validated service credit, or upon 15 the death of a pensioner otherwise qualified for such 16 benefit, the surviving spouse and unmarried minor children of 17 the deceased teacher under age 18 shall be entitled to 18 pensions, under the conditions stated hereinafter. Such 19 survivor's and children's pensions shall be based on the 20 average of the 4 highest consecutive years of salary in the 21 last 10 years of service or on the average salary for total 22 service, if total service has been less than 4 years, 23 according to the following percentages: 24 30% of average salary or 50% of the retirement pension 25 earned by the teacher, whichever is larger, subject to the 26 prescribed maximum monthly payment, for a surviving spouse 27 alone on attainment of age 50; 28 60% of average salary for a surviving spouse and 29 eligible minor children of the deceased teacher. 30 If no eligible spouse survives, or the surviving spouse 31 remarries, or the parent of the children of the deceased 32 member is otherwise ineligible for a survivor's pension, a 33 children's pension for eligible minor children under age 18 34 shall be paid to their parent or legal guardian for their HB0372 Engrossed -8- LRB9001754EGfg 1 benefit according to the following percentages: 2 30% of average salary for one child; 3 60% of average salary for 2 or more children. 4 On January 1, 1981, any survivor or child who was 5 receiving a survivor's or children's pension on or before 6 January 1, 1971, shall have his survivor's or children's 7 pension then being paid increased by 1% for each full year 8 which has elapsed from the date the pension began. On January 9 1, 1982, any survivor or child whose pension began after 10 January 1, 1971, but before January 1, 1981, shall have his 11 survivor's or children's pension then being paid increased 1% 12 for each full year which has elapsed from the date the 13 pension began. On January 1, 1987, any survivor or child 14 whose pension began on or before January 1, 1977, shall have 15 the monthly survivor's or children's pension increased by $1 16 for each full year which has elapsed since the pension began. 17 Beginning January 1, 1990, every survivor's and 18 children's pension shall be increased (1) on each January 1 19 occurring on or after the commencement of the pension if the 20 deceased teacher died while receiving a retirement pension, 21 or (2) in other cases, on each January 1 occurring on or 22 after the first anniversary of the commencement of the 23 pension, by an amount equal to 3% of the current amount of 24 the pension, including all increases previously granted under 25 this Article, notwithstanding Section 17-157. Such increases 26 shall apply without regard to whether the deceased teacher 27 was in service on or after the effective date of this 28 amendatory Act of 1991, but shall not accrue for any period 29 prior to January 1, 1990. 30 Subject to the minimum established below, the maximum 31 amount of pension for a surviving spouse alone or one minor 32 child shall be $400 per month, and the maximum combined 33 pensions for a surviving spouse and children of the deceased 34 teacher shall be $600 per month, with individual pensions HB0372 Engrossed -9- LRB9001754EGfg 1 adjusted for all beneficiaries pro rata to conform with this 2 limitation. If proration is unnecessary the minimum 3 survivor's and children's pensions shall be $40 per month. 4 The minimum total survivor's and children's pension payable 5 upon the death of a contributor or annuitant which occurs 6 after December 31, 1986, shall be 50% of the earned 7 retirement pension of such contributor or annuitant, 8 calculated without early retirement discount in the case of 9 death in service. 10 On death after retirement, the total survivor's and 11 children's pensions shall not exceed the monthly retirement 12 or disability pension paid to the deceased retirant. 13 Survivor's and children's benefits described in this Section 14 shall apply to all service and disability pensioners eligible 15 for a pension as of July 1, 1981. 16 (Source: P.A. 86-273; 86-1488.) 17 (40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134) 18 Sec. 17-134. Contributions for leaves of absence; 19 military service; computing service. In computing service 20 for pension purposes the following periods of service shall 21 stand in lieu of a like number of years of teaching service 22 upon payment therefor in the manner hereinafter provided: (a) 23 time spent on sabbatical leaves of absence, sick leaves or 24 maternity or paternity leaves; (b) service with teacher or 25 labor organizations based upon special leaves of absence 26 therefor granted by the Board of Education; (c) a maximum of 27 5 years spent in the military service of the United States, 28 of which up to 2 years may have been served outside the 29 pension period; (d) unused sick days at termination of 30 service to a maximum of 244 days; (e) time lost due to layoff 31 and curtailment of the school term from June 6 through June 32 21, 1976; and (f) time spent after June 30, 1982 as a member 33 of the Board of Education, if required to resign from an HB0372 Engrossed -10- LRB9001754EGfg 1 administrative or teaching position in order to qualify as a 2 member of the Board of Education. 3 (1) 1.For time spent on or after September 6, 1948 4 on sabbatical leaves of absence or sick leaves, for which 5 salaries are paid, the Board of Education shall make 6 payroll deductions at the applicable rates in effect 7 during such periods. 8 (2) 2.For time spent on sabbatical or sick leaves 9 commencing on or after September 1, 1961, and for time 10 spent on maternity or paternity leaves, for which no 11 salaries are paid, teachers desiring credit therefor 12 shall pay the required contributions at the rates in 13 effect during such periods as though they were in 14 teaching service. If the Board of Education pays salary 15 for vacations which occur during a teacher's sick leave 16 or maternity or paternity leave without salary, vacation 17 pay for which the teacher would have qualified while in 18 active service shall be considered part of the teacher's 19 total salary for pension purposes. No more than 12 months 20 of sick leave or maternity or paternity leave credit may 21 be allowed any person during the entire term of service. 22 Sabbatical leave credit shall be limited to the time the 23 person on leave without salary under Board of Education 24 rules is allowed to engage in an activity for which he 25 receives salary or compensation. 26 (3) 3.For time spent prior to September 6, 1948, 27 on sabbatical leaves of absence or sick leaves for which 28 salaries were paid, teachers desiring service credit 29 therefor shall pay the required contributions at the 30 maximum applicable rates in effect during such periods. 31 (4) 4.For service with teacher or labor 32 organizations authorized by special leaves of absence, 33 for which no payroll deductions are made by the Board of 34 Education, teachers desiring service credit therefor HB0372 Engrossed -11- LRB9001754EGfg 1 shall contribute to the fund upon the basis of the actual 2 salary received from such organizations at the percentage 3 rates in effect during such periods for certified 4 positions with the Board of Education. To the extent the 5 actual salary exceeds the regular salary, which shall be 6 defined as the salary rate, as calculated by the board of 7 trustees, in effect for the teacher's regular position in 8 teaching service on September 1, 1983 or on the effective 9 date of the leave with the organization, whichever is 10 later, the organization shall pay to the fund the 11 employer's normal cost as set by the board of trustees on 12 the increment. 13 (5) 5.For time spent in the military service, 14 teachers entitled to and desiring credit therefor shall 15 contribute the amount required for each year of service 16 or fraction thereof at the rates in force (a) at the date 17 of appointment, or (b) on return to teaching service as a 18 regularly certified teacher, as the case may be; provided 19 such rates shall not be less than $450 per year of 20 service. These conditions shall apply unless the Board 21 of Education elects to and does pay into the fund the 22 amount which would have been due from such person had he 23 been employed as a teacher during such time. In the case 24 of credit for military service not during the pension 25 period, the teacher must also pay to the Fund an amount 26 determined by the board to be equal to the employer's 27 normal cost of the benefits accrued from such service, 28 plus interest thereon at 5% per year, compounded 29 annually, from the date of appointment conclusion of the30 military serviceto the date of payment. 31 The changes to this Section made by Public Act 32 87-795 this amendatory Act of 1991shall apply not only 33 to persons who on or after its effective date are in 34 service under the Fund, but also to persons whose status HB0372 Engrossed -12- LRB9001754EGfg 1 as a teacher terminated prior to that date, whether or 2 not the person is an annuitant on that date. In the case 3 of an annuitant who applies for credit allowable under 4 this Section for a period of military service that did 5 not immediately follow employment, and who has made the 6 required contributions for such credit, the annuity shall 7 be recalculated to include the additional service credit, 8 with the increase taking effect on the date the Fund 9 received written notification of the annuitant's intent 10 to purchase the credit, if payment of all the required 11 contributions is made within 60 days of such notice, or 12 else on the first annuity payment date following the date 13 of payment of the required contributions. In calculating 14 the automatic annual increase for an annuity that has 15 been recalculated under this Section, the increase 16 attributable to the additional service allowable under 17 this amendatory Act of 1991 shall be included in the 18 calculation of automatic annual increases accruing after 19 the effective date of the recalculation. 20 The total credit for military service shall not 21 exceed 5 years, except that any teacher who on July 1, 22 1963, had validated credit for more than 5 years of 23 military service shall be entitled to the total amount of 24 such credit. 25 (6) 6.A maximum of 244 unused sick days credited 26 to his account by the Board of Education on the date of 27 termination of employment. Members, upon verification of 28 unused sick days, may add this service time to total 29 creditable service. 30 (7) 7.In all cases where time spent on leave is 31 creditable and no payroll deductions therefor are made by 32 the Board of Education, persons desiring service credit 33 shall make the required contributions directly to the 34 fund. HB0372 Engrossed -13- LRB9001754EGfg 1 (8) 8.For time lost without pay due to layoff and 2 curtailment of the school term from June 6 through June 3 21, 1976, as provided in item (e) of the first paragraph 4 of this Section, persons who were contributors on the 5 days immediately preceding such layoff shall receive 6 credit upon paying to the Fund a contribution based on 7 the rates of compensation and employee contributions in 8 effect at the time of such layoff, together with an 9 additional amount equal to 12.2% of the compensation 10 computed for such period of layoff, plus interest on the 11 entire amount at 5% per annum from January 1, 1978 to the 12 date of payment. If such contribution is paid, salary 13 for pension purposes for any year in which such a layoff 14 occurred shall include the compensation recognized for 15 purposes of computing that contribution. 16 (9) 9.For time spent after June 30, 1982, as a 17 nonsalaried member of the Board of Education, if required 18 to resign from an administrative or teaching position in 19 order to qualify as a member of the Board of Education, 20 an administrator or teacher desiring credit therefor 21 shall pay the required contributions at the rates and 22 salaries in effect during such periods as though the 23 member were in service. 24 Effective September 1, 1974, the interest charged for 25 validation of service described in paragraphs (2) through (5) 26 sub-paragraphs 2 through 5of this Section shall be 27 compounded annually at a rate of 5% commencing one year after 28 the termination of the leave ,or return to service. 29 (Source: P.A. 86-272; 86-1488; 87-794.) 30 (40 ILCS 5/17-146) (from Ch. 108 1/2, par. 17-146) 31 Sec. 17-146. To make investments. To invest the moneys 32 of the fund, subject to the requirements and restrictions set 33 forth in this Article and in Sections 1-109, 1-109.1, HB0372 Engrossed -14- LRB9001754EGfg 1 1-109.2, 1-110, 1-111, 1-114 and 1-115. The total book value2 of all stocks and convertible debt owned by the fund shall3 not exceed 50% of the aggregate book value of all investments4 of the fund, calculated on the basis of amortized cost.5 No bank or savings and loan association shall receive 6 investment funds as permitted by this Section, unless it has 7 complied with the requirements established pursuant to 8 Section 6 of the Public Funds Investment Act. Those 9 requirements shall be applicable only at the time of 10 investment and shall not require the liquidation of any 11 investment at any time. 12 The board shall have the authority to enter into any 13 agreements and to execute any documents that it determines to 14 be necessary to complete any investment transaction. 15 All investments shall be clearly held and accounted for 16 to indicate ownership by the fund. The board may direct the 17 registration of securities or the holding of interests in 18 real property in the name of the fund or in the name of a 19 nominee created for the express purpose of registering 20 securities or holding interests in real property by a 21 national or state bank or trust company authorized to conduct 22 a trust business in the State of Illinois. The board may 23 hold title to interests in real property in the name of the 24 fund or in the name of a title holding corporation created 25 for the express purpose of holding title to interests in real 26 property. 27 Investments shall be carried at cost or at a bookvalue 28 determined in accordance with generally accepted accounting 29 principles and accounting procedures approved by the board. 30 No adjustments shall be made in investment carrying values31 for ordinary current market price fluctuations, but reserves32 may be provided to account for possible losses or unrealized33 gains.34 The bookvalue of investments held by the fund in one or HB0372 Engrossed -15- LRB9001754EGfg 1 more commingled investment accounts shall be determined in 2 accordance with generally accepted accounting principles the3 cost of its units of participation in those commingled4 account or accounts. 5 The board of trustees of any fund established under this 6 Article may not transfer its investment authority, nor 7 transfer the assets of the fund to any other person or entity 8 for the purpose of consolidating or merging its assets and 9 management with any other pension fund or public investment 10 authority, unless the board resolution authorizing such 11 transfer is submitted for approval to the contributors and 12 pensioners of the fund at elections held not less than 30 13 days after the adoption of such resolution by the board, and 14 such resolution is approved by a majority of the votes cast 15 on the question in both the contributors election and the 16 pensioners election. The election procedures and 17 qualifications governing the election of trustees shall 18 govern the submission of resolutions for approval under this 19 paragraph, insofar as they may be made applicable. 20 (Source: P.A. 89-636, eff. 8-9-96.) 21 (40 ILCS 5/17-146.1) (from Ch. 108 1/2, par. 17-146.1) 22 Sec. 17-146.1. Participation in commingled investment 23 funds; transfer of investment functions and securities. 24 (a) The retirement board may invest in any commingled 25 investment fund or funds established and maintained by the 26 Illinois State Board of Investment under the provisions of 27 Article 22A of this Code. The book value of all commingled28 equity participations plus the book value of other stock29 investments owned by this system shall not exceed the maximum30 permissible percentage rate for equity investments prescribed31 in Section 17-146.All commingled fund participations shall 32 be subject to the law governing the Illinois State Board of 33 Investment and the rules, policies and directives of that HB0372 Engrossed -16- LRB9001754EGfg 1 Board. 2 (b) The retirement board may, by resolution duly adopted 3 by a majority vote of its membership, transfer to the 4 Illinois State Board of Investment created by Article 22A of 5 this Code, for management and administration, all investments 6 owned by the Fund of every kind and character. Upon 7 completion of such transfer, the authority of the retirement 8 board to make investments shall terminate. Thereafter, all 9 investments of the reserves of the Fund shall be made by the 10 Illinois State Board of Investment in accordance with the 11 provisions of Article 22A of this Code. 12 Such transfer shall be made not later than the first day 13 of the fourth month next following the date of such 14 resolution. Before such transfer an audit of such investments 15 shall be completed by a certified public accountant selected 16 by the Illinois State Board of Investment and approved by the 17 Auditor General of the State of Illinois. The expense of such 18 audit shall be defrayed by the retirement board. 19 (Source: P. A. 78-645.) 20 Section 90. The State Mandates Act is amended by adding 21 Section 8.21 as follows: 22 (30 ILCS 805/8.21 new) 23 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6 24 and 8 of this Act, no reimbursement by the State is required 25 for the implementation of any mandate created by this 26 amendatory Act of 1997. 27 Section 99. Effective date. This Act takes effect upon 28 becoming law.
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