Sen. Susan Garrett
Filed: 3/25/2009
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 2212




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    AMENDMENT NO. ______. Amend Senate Bill 2212 by replacing 
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everything after the enacting clause with the following:


 
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    "Section 5. The Illinois Pension Code is amended  by 
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changing Section 1A-104 as follows:
 



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    (40 ILCS 5/1A-104)



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    Sec. 1A-104. Examinations and investigations. 

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    (a) The Division shall make periodic examinations and 
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investigations of all
pension funds established under this Code 
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and maintained for the benefit of
employees and officers of 
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governmental units in the State of Illinois.
However, in lieu 
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of making an examination and investigation, the Division
may 
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accept and rely upon a report of audit or examination of any 
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pension fund
made by an independent certified public accountant 
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pursuant to the provisions
of the Article of this Code 
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governing the pension fund.  The acceptance of the
report of 
 


 






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audit or examination does not bar the Division from making a 
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further
audit, examination, and investigation if deemed 
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necessary by the Division.

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    The Department may implement a flexible system of 
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examinations  under
which it directs resources as it deems 
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necessary or appropriate.  In
consultation with the pension fund 
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being examined, the Division may retain
attorneys, independent 
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actuaries, independent certified public accountants, and
other 
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professionals and specialists as examiners, the cost of which 
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(except in
the case of pension funds established under Article 
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3 or 4) shall be borne by
the pension fund that is the subject 
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of the examination.

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    (b) The Division shall examine or investigate each pension 
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fund established
under Article 3 or Article 4 of this Code. 
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Beginning December 31, 2010, the The schedule of each 
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examination shall be such that each fund shall be examined once 
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every 5 3 years. The Division shall comply with the changes 
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made by this amendatory Act of the 96th General Assembly, and 
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any costs associated with the changes shall be paid for using 
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the pension fund fee structure as it exists on the effective 
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date of that amendatory Act. 

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    Each examination shall include the following:


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        (1) an audit of financial transactions, investment 
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    policies, and
procedures;


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        (2) an examination of books, records, documents, 
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    files, and other
pertinent memoranda relating to 
 


 






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    financial, statistical, and administrative
operations;


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        (3) a review of policies and procedures maintained for 
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    the administration
and operation of the pension fund;


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        (4) a determination of whether or not full effect is 
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    being given to the
statutory provisions governing the 
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    operation of the pension fund;


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        (5) a determination of whether or not the 
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    administrative policies in force
are in accord with the 
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    purposes of the statutory provisions and effectively

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    protect and preserve the rights and equities of the 
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    participants;


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        (6) a determination of whether or not proper financial 
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    and statistical
records have been established and adequate 
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    documentary evidence is recorded and
maintained in support 
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    of the several types of annuity and benefit payments
being 
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    made; and

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        (7) a determination of whether or not the calculations 
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    made by the fund for the payment of all annuities and 
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    benefits are accurate. 
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    In addition, the Division may conduct investigations, 
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which shall be
identified as such and which may include one or 
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more of the items listed in
this subsection.

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    A copy of the report of examination or investigation as 
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prepared by the
Division shall be submitted to the secretary of 
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the board of trustees of the
pension fund examined or 
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investigated and to the chief executive officer of the 
 


 






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municipality.  The Director, upon request, shall grant
a hearing 
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to the officers or trustees of the pension fund or their duly

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appointed representatives, upon any facts contained in the 
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report of
examination.  The hearing shall be conducted before 
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filing the report or making
public any information contained in 
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the report.  The Director may withhold the
report from public 
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inspection for up to 60 days following the hearing.

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(Source: P.A. 95-950, eff. 8-29-08.)


 

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