Public Act 094-0471
 		





SB0253 Enrolled
LRB094 07452 AMC 37615 b






    AN ACT concerning public employee benefits.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. The Illinois Pension Code is amended  by changing 
Section 1-109.1 as follows:
 



    (40 ILCS 5/1-109.1)  (from Ch. 108 1/2, par. 1-109.1)



    Sec. 1-109.1. Allocation and Delegation of Fiduciary 
Duties. 

    (1) Subject to the provisions of Section 22A-113 of this 
Code and
subsections (2) and (3) of this Section, the board of 
trustees of a
retirement system or pension fund established 
under this Code may:


        (a) Appoint one or more investment managers as 
    fiduciaries to manage
(including the power to acquire and 
    dispose of) any assets of the
retirement system or pension 
    fund; and


        (b) Allocate duties among themselves and designate 
    others as fiduciaries
to carry out specific fiduciary 
    activities other than the management of the
assets of the 
    retirement system or pension fund.

    (2) The board of trustees of a pension fund established 
under Article 5, 6,
8, 9, 10, 11, 12 or 17 of this Code may not 
transfer its investment authority,
nor transfer the assets of 
the fund to any other person or entity for the
purpose of 
consolidating or merging its assets and management with any 
other
pension fund or public investment authority, unless the 
board resolution
authorizing such transfer is submitted for 
approval to the contributors and
pensioners of the fund at 
elections held not less than 30 days after the
adoption of such 
resolution by the board, and such resolution is approved by a

majority of the votes cast on the question in both the 
contributors election
and the pensioners election.  The 
election procedures and qualifications
governing the election 
of trustees shall govern the submission of resolutions
for 
approval under this paragraph, insofar as they may be made 
applicable.

    (3)  Pursuant to subsections (h) and (i) of Section 6 of 
Article VII of
the Illinois Constitution, the investment 
authority of boards of trustees
of retirement systems and 
pension funds established under this Code is declared
to be a 
subject of exclusive State jurisdiction, and the concurrent 
exercise
by a home rule unit of any power affecting such 
investment authority is
hereby specifically denied and 
preempted.

    (4) For the purposes of this Code, "emerging investment 
manager" means a
qualified investment adviser that manages an 
investment portfolio of at
least $10,000,000 but less than 
$2,000,000,000
$400,000,000 on January 1, 1993 and is a

"minority owned business" or "female owned business" as those 
terms are
defined in the Business Enterprise for Minorities,

Females, and Persons with Disabilities Act. 

    It is hereby declared to be the public policy of the State 
of Illinois to
encourage the trustees of public employee 
retirement systems
to use emerging investment managers in 
managing their system's assets to the
greatest extent feasible 
within the bounds of financial and fiduciary
prudence, and to 
take affirmative steps to remove any barriers to the full

participation of emerging investment managers in investment 
opportunities
afforded by those retirement systems.

    Each retirement system subject to this Code shall prepare a

report to be submitted to the Governor and the General Assembly 
by
September 1 of each year.  The report shall identify the 
emerging
investment managers used by the system, the percentage 
of the system's
assets under the investment control of emerging 
investment managers, and
the actions it has undertaken to 
increase the use of emerging investment
managers, including 
encouraging other investment managers to use emerging

investment managers as subcontractors when the opportunity 
arises.

    The use of an emerging investment manager does not 
constitute a transfer
of investment authority for the purposes 
of subsection (2) of this Section.

(Source: P.A. 92-16, eff. 6-28-01.)

 

    Section 99. Effective date. This Act takes effect upon 
becoming law.