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90_HB1084
40 ILCS 5/3-135 from Ch. 108 1/2, par. 3-135
40 ILCS 5/4-128 from Ch. 108 1/2, par. 4-128
Amends the Downstate Police and Fire Articles of the
Pension Code. Permits the board to register the investments
of the pension fund in the name of the pension fund, in the
nominee name of a bank or trust company authorized to conduct
a trust business in Illinois, in the nominee name of a
securities broker or dealer who is a fully qualified member
of the Securities Investor Protection Corporation created
under the federal Securities Investor Protection Corporation
Act of 1970, or in the nominee name of the Illinois Public
Treasurer's Investment Pool. Effective immediately.
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1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 3-135 and 4-128.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 3-135 and 4-128 as follows:
7 (40 ILCS 5/3-135) (from Ch. 108 1/2, par. 3-135)
8 Sec. 3-135. To draw and invest funds. To draw pension
9 funds from the treasurer of the municipality, and invest any
10 part thereof in the name of the board in: (1) interest
11 bearing bonds or tax anticipation warrants of the United
12 States, of the State of Illinois, or of any county, township
13 or municipal corporation of the State of Illinois; (2)
14 insured withdrawable capital accounts of State chartered
15 savings and loan associations; (3) insured withdrawable
16 capital accounts of federal chartered federal savings and
17 loan associations if the withdrawable capital accounts are
18 insured by the Federal Savings and Loan Insurance
19 Corporation; (4) insured investments in credit unions if the
20 investments are insured by the National Credit Union
21 Administration; (5) savings accounts or certificates of
22 deposit of a national or State bank; (6) securities described
23 in item 5.1 of Section 1-113 of this Code, but only subject
24 to the conditions therein set forth; (7) contracts and
25 agreements supplemental thereto providing for investments in
26 the general account of a life insurance company authorized to
27 do business in Illinois; (8) separate accounts of a life
28 insurance company authorized to do business in Illinois,
29 comprised of common or preferred stocks, bonds, or money
30 market instruments; and (9) separate accounts managed by a
31 life insurance company authorized to do business in Illinois,
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1 comprised of real estate or loans upon real estate secured by
2 first or second mortgages. The total investment in such
3 separate accounts shall not exceed 10% of the aggregate book
4 value of all investments owned by the fund. All securities
5 shall be deposited with the treasurer of the municipality,
6 and be subject to the order of the board. Interest on the
7 investments shall be credited to the pension fund.
8 The board may register the investments of the pension
9 fund in the name of the pension fund, in the nominee name of
10 a bank or trust company authorized to conduct a trust
11 business in Illinois, in the nominee name of a securities
12 broker or dealer who is a fully qualified member of the
13 Securities Investor Protection Corporation created under the
14 federal Securities Investor Protection Corporation Act of
15 1970, or in the nominee name of the Illinois Public
16 Treasurer's Investment Pool.
17 No bank or savings and loan association shall receive
18 investment funds as permitted by this Section, unless it has
19 complied with the requirements established pursuant to
20 Section 6 of "An Act relating to certain investments of
21 public funds by public agencies", approved July 23, 1943, as
22 now or hereafter amended. The limitations set forth in such
23 Section 6 shall be applicable only at the time of investment
24 and shall not require the liquidation of any investment at
25 any time.
26 (Source: P.A. 84-1472.)
27 (40 ILCS 5/4-128) (from Ch. 108 1/2, par. 4-128)
28 Sec. 4-128. To invest funds. To invest the money of the
29 pension fund only in: (1) interest bearing bonds of the
30 United States, or of the State of Illinois, or of any county,
31 city, township, village, incorporated town, municipal
32 corporation or school district in this State; (2) tax
33 anticipation warrants issued by any city, township, village,
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1 incorporated town, or fire protection district included
2 within this Article; (3) notes, bonds, debentures or other
3 similar obligations which are guaranteed as to principal and
4 interest by the United States; (4) insured withdrawable
5 capital accounts of State chartered savings and loan
6 associations; (5) insured withdrawable capital accounts of
7 federal chartered federal savings and loan associations if
8 the withdrawable capital accounts are insured by the Federal
9 Savings and Loan Insurance Corporation; (6) insured
10 investments in credit unions if the investments are insured
11 by the National Credit Union Administration; and (7) savings
12 accounts or certificates of deposit of a national or State
13 bank; (8) securities described in item 5.1 of Section 1-113
14 of this Code, but only subject to the conditions therein set
15 forth; (9) contracts and agreements supplemental thereto
16 providing for investments in the general account of a life
17 insurance company authorized to do business in Illinois; (10)
18 separate accounts of a life insurance company authorized to
19 do business in Illinois, comprised of common or preferred
20 stocks, bonds, or money market instruments; and (11) separate
21 accounts managed by a life insurance company authorized to do
22 business in Illinois, comprised of real estate or loans upon
23 real estate secured by first or second mortgages. The total
24 investment in such separate accounts shall not exceed 10% of
25 the aggregate book value of all investments owned by the
26 fund.
27 The board may register the investments of the pension
28 fund in the name of the pension fund, in the nominee name of
29 a bank or trust company authorized to conduct a trust
30 business in Illinois, in the nominee name of a securities
31 broker or dealer who is a fully qualified member of the
32 Securities Investor Protection Corporation created under the
33 federal Securities Investor Protection Corporation Act of
34 1970, or in the nominee name of the Illinois Public
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1 Treasurer's Investment Pool.
2 Bonds purchased hereunder shall be registered in the name
3 of the board or held under custodial agreement at a bank.
4 No bank or savings and loan association shall receive
5 investment funds as permitted by this Section, unless it has
6 complied with the requirements established pursuant to
7 Section 6 of "An Act relating to certain investments of
8 public funds by public agencies", approved July 23, 1943, as
9 now or hereafter amended. The limitations set forth in such
10 Section 6 shall be applicable only at the time of investment
11 and shall not require the liquidation of any investment at
12 any time.
13 (Source: P.A. 84-1472.)
14 Section 99. Effective date. This Act takes effect upon
15 becoming law.