SB2456 96TH GENERAL ASSEMBLY

96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010
SB2456

Introduced 5/14/2009, by Sen. Jeffrey M. Schoenberg

SYNOPSIS AS INTRODUCED:

`40 ILCS 5/15-167.1`	`from Ch. 108 1/2, par. 15-167.1`
`40 ILCS 5/16-179.1`	`from Ch. 108 1/2, par. 16-179.1`

Amends the State Universities and Downstate Teacher Articles of the Illinois Pension Code. Allows the board of trustees to transfer to the

Illinois State Board of Investment, for management and administration, all

investments owned by the system by resolution
duly adopted by a record  vote

of three-fifths of its membership (rather than by a majority vote of its membership). Effective immediately.

LRB096 12667 AMC 26251 b

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

SB2456

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1 AN ACT concerning public employee benefits.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Illinois Pension Code is amended by changing

5 Sections 15-167.1 and 16-179.1 as follows:

6 (40 ILCS 5/15-167.1) (from Ch. 108 1/2, par. 15-167.1)

7 Sec. 15-167.1. Participation in commingled investment

8 funds-Transfer of investment functions and securities.

9 (a) The retirement board may invest in any commingled

10 investment fund or funds established and maintained by the

11 Illinois State Board of Investment under Article 22A of this

12 Code. All commingled fund participations shall be subject to

13 the law governing the Illinois State Board of Investment and

14 the rules, policies and directives of that Board.

15 (b) The retirement board may, by resolution duly adopted by

16 a record ~~majority~~vote ofthree-fifths of its membership,

17 transfer to the Illinois State Board of Investment created by

18 Article 22A of this Code, for management and administration,

19 all investments owned by the system of every kind and

20 character. Upon completion of such transfer, the authority of

21 the retirement board to make investments shall terminate.

22 Thereafter, all investments of the reserves of the system shall

23 be made by the Illinois State Board of Investment in accordance

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1 with Article 22A of this Code.

2 The transfer shall be made not later than the first day of

3 the fourth month next following the date of such resolution.

4 Before such transfer, an audit of the investments shall be

5 completed by a certified public accountant selected by the

6 Illinois State Board of Investment and approved by the Auditor

7 General of the State of Illinois. The expense of the audit

8 shall be assumed by the retirement board.

9 (Source: P.A. 83-1440.)

10 (40 ILCS 5/16-179.1) (from Ch. 108 1/2, par. 16-179.1)

11 Sec. 16-179.1. To transfer investment functions and

12 securities. The board may, by resolution duly adopted by a

13 record ~~majority~~vote ofthree-fifths of its membership,

14 transfer to the Illinois State Board of Investment created by

15 Article 22A, for management and administration, all

16 investments owned by the system of every kind and character.

17 Upon completion of such transfer, the authority of the board to

18 make investments shall terminate. Thereafter, all investments

19 of the assets of the system shall be made by the Illinois State

20 Board of Investment in accordance with the provisions of

21 Article 22A.

22 Such transfer shall be made not later than the first day of

23 the fourth month next following the date of such resolution.

24 Before such transfer an audit of such investments shall be

25 completed by a certified public accountant selected by the

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1 Illinois State Board of Investment and approved by the Auditor

2 General of the State of Illinois. The expense of such audit

3 shall be defrayed by the board.

4 (Source: P.A. 83-1440.)

5 Section 99. Effective date. This Act takes effect upon

6 becoming law.