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| Public Act 099-0708 | ||||
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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 | ||||
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 | ||
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 | ||
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 | ||
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 | ||
Treasurer or his authorized agent for the
account of the board | ||
to be applied for investment by the board. Notice to
the board | ||
of each such transfer shall be given by the Illinois Bank
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Examiners' Education Foundation after the transfer occurs.
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(Source: P.A. 84-1127.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law. | ||