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Public Act 099-0708
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| SB3071 Enrolled | LRB099 18394 EFG 42769 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 |
Sections 22A-109, 22A-111, 22A-113.1, 22A-113.2, and 22A-113.3 |
as follows:
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(40 ILCS 5/22A-109) (from Ch. 108 1/2, par. 22A-109)
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Sec. 22A-109. Membership of board. The board shall consist |
of the following
members: |
(1) Five trustees appointed by the Governor with the |
advice and consent of the Senate who may not hold an |
elective State office. |
(2) The Treasurer. |
(3) The Comptroller, who shall represent the State |
Employees' Retirement System of Illinois. |
(4) The Chairperson of the General Assembly Retirement |
System. |
(5) The Chairperson of the Judges Retirement System of |
Illinois. |
The appointive
members shall serve for terms of 4 years except |
that the terms of office of the
original appointive members |
pursuant to this amendatory Act of the 96th General Assembly |
shall be as follows: One member for a term of 1
year; 1 member |
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for a term of 2 years; 1 member for a term of 3 years; and 2 |
members for a term of 4 years. Vacancies among the appointive
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members shall be filled for unexpired terms by appointment in
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like manner as for original appointments, and appointive |
members shall
continue in office until their successors have |
been appointed and have
qualified.
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Notwithstanding any provision of this Section to the |
contrary, the term of office of each trustee of the Board |
appointed by the Governor who is sitting on the Board on the |
effective date of this amendatory Act of the 96th General |
Assembly is terminated on that effective date. A trustee |
sitting on the board on the effective date of this amendatory |
Act of the 96th General Assembly may not hold over in office |
for more than 60 days after the effective date of this |
amendatory Act of the 96th General Assembly. Nothing in this |
Section shall prevent the Governor from making a temporary |
appointment or nominating a trustee holding office on the day |
before the effective date of this amendatory Act of the 96th |
General Assembly. |
Each person appointed to membership shall qualify by taking |
an oath of
office before the Secretary of State stating that he |
will diligently and
honestly administer the affairs of the |
board and will not violate or knowingly
permit the violation of |
any provisions of this Article.
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Members of the board shall receive no salary for service on |
the board but
shall be reimbursed for travel expenses incurred |
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while on business for the
board according to the standards in |
effect for members of the Illinois
Legislative Research Unit.
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A majority of the members of the board shall constitute a |
quorum. The
board shall elect from its membership, biennially, |
a Chairman, Vice Chairman
and a Recording Secretary. These |
officers, together with one other member
elected by the board, |
shall constitute the executive committee. During the
interim |
between regular meetings of the board, the executive committee |
shall
have authority to conduct all business of the board and |
shall report such
business conducted at the next following |
meeting of the board for ratification.
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No member of the board shall have any interest in any |
brokerage fee,
commission or other profit or gain arising out |
of any investment made by
the board. This paragraph does not |
preclude ownership by any member of any
minority interest in |
any common stock or any corporate obligation in which
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investment is made by the board.
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The board shall contract for a blanket fidelity bond in the |
penal sum of
not less than $1,000,000.00 to cover members of |
the board, the director and
all other employees of the board |
conditioned for the faithful performance of
the duties of their |
respective offices, the premium on which shall be paid by
the |
board. The bond shall be filed with the State Treasurer for |
safekeeping.
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(Source: P.A. 96-6, eff. 4-3-09.)
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(40 ILCS 5/22A-111) (from Ch. 108 1/2, par. 22A-111)
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Sec. 22A-111.
The Board shall manage the investments of any |
pension
fund, retirement system, or education fund for the |
purpose
of obtaining a total return on
investments for the long |
term. It also shall perform such other functions as
may be |
assigned or directed by the General Assembly.
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The authority of the board to manage pension fund |
investments and the
liability shall begin when there has been a |
physical transfer of the pension
fund investments to the board |
and placed in the custody of the board's custodian State |
Treasurer.
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The authority of the board to manage monies from the |
education fund for
investment and the liability of the board |
shall begin when there has been a
physical transfer of |
education fund investments to the board and placed in
the |
custody of the board's custodian State Treasurer.
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The board may not delegate its management functions, but it |
may, but is not required to, arrange
to compensate for |
personalized investment advisory service
for any or all |
investments under its control with any national or state bank
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or trust company authorized to do a trust business and |
domiciled in Illinois,
other financial institution organized |
under the laws of Illinois, or an
investment advisor who is |
qualified under Federal Investment Advisors Act of 1940
and is |
registered under the Illinois Securities Law of 1953. Nothing |
contained
herein shall prevent the Board from subscribing to |
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general investment research
services available for purchase or |
use by others. The Board shall also have
the authority to |
compensate for accounting services.
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This Section shall not be construed to prohibit the |
Illinois State Board of Investment from directly investing |
pension assets in public market investments, private |
investments, real estate investments, or other investments |
authorized by this Code. |
(Source: P.A. 96-1554, eff. 3-18-11.)
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(40 ILCS 5/22A-113.1) (from Ch. 108 1/2, par. 22A-113.1)
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Sec. 22A-113.1. Investable funds.
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Each retirement system under the management of the Illinois |
State Board
of Investment shall report to the board from time |
to time the amounts of
funds available for investment. These |
amounts shall be transferred
immediately to the board's |
custodian or the custodian's State Treasurer or his authorized |
agent for the account
of the board to be applied for investment |
by the board. Notice to the
Illinois State Board of Investment |
of each such transfer shall be given by
the retirement system |
as the transfer occurs.
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(Source: P.A. 78-646.)
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(40 ILCS 5/22A-113.2) (from Ch. 108 1/2, par. 22A-113.2)
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Sec. 22A-113.2. Custodian State Treasurer.
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The securities, funds and other assets transferred to the |
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The Illinois State
Board of Investment or otherwise acquired by |
the board shall be placed in
the custody of the board's |
custodian. The custodian shall State Treasurer who shall serve |
as official custodian of
the board, provide adequate safe |
deposit facilities therefor and hold all
such securities, funds |
and other assets subject to the order of the board.
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As soon as may be practicable, but in no event later than |
December 31, 2016, the board shall appoint and retain a |
qualified custodian. Until a custodian has been appointed by |
the board, the State Treasurer shall serve as official |
custodian of
the board. |
The custodian State Treasurer shall furnish a corporate |
surety bond of such amount
as the board designates, which bond |
shall indemnify the board against any
loss that may result from |
any action or failure to act by the custodian Treasurer or
any |
of the custodian's his agents. All charges incidental to the |
procuring and giving of
such bond shall be paid by the board. |
The bond shall be in the custody of
the board.
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(Source: P.A. 77-611.)
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(40 ILCS 5/22A-113.3) (from Ch. 108 1/2, par. 22A-113.3)
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Sec. 22A-113.3. Investable funds of education foundation. |
The
Illinois Bank Examiners'
Education Foundation shall report |
to the board from time to time the
amounts of monies available |
for investment by the board. These amounts shall be
transferred |
promptly to the board's custodian or the custodian's State |