97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1613
 
Introduced 2/9/2011, by Sen. Iris Y. Martinez
 
SYNOPSIS AS INTRODUCED:
 

 



40 ILCS 5/1-107  from Ch. 108 1/2, par. 1-107
30 ILCS 805/8.35 new

     Amends the Illinois Pension Code. Requires (rather than authorizes) every retirement system other than the State-funded retirement systems to indemnify and protect its board of trustees from damage claims for negligent or wrongful acts. Authorizes the State-funded retirement systems and the Illinois State Board of Investment to offer similar indemnification. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
  


LRB097 07600 JDS 47711 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
 
 
A BILL FOR
 

  
SB1613LRB097 07600 JDS 47711 b


  
1    AN ACT concerning public employee benefits.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Illinois Pension Code is amended  by changing 
5Section 1-107 as follows:
 



6    (40 ILCS 5/1-107)  (from Ch. 108 1/2, par. 1-107)



7    Sec. 1-107. Indemnification of trustees, consultants and 
8employees of
retirement systems and pension funds.  
9    (a)  Every retirement system, pension fund, or other system 
10or fund established under this Code, other than a retirement 
11system established under Article 2, 14, 15, 16, or 18 of this 
12Code or the investment board established under Article 22A of 
13this Code, must indemnify and protect the trustees against all 
14damage claims and suits, including defense thereof, when 
15damages are sought for negligent or wrongful acts alleged to 
16have been committed in the scope of their powers and duties as 
17trustees.
18    Every retirement system established under Article 2, 14, 
1915, 16, or 18 of this Code may indemnify and protect the 
20trustees against all damage claims and suits, including defense 
21thereof, when damages are sought for negligent or wrongful acts 
22alleged to have been committed in the scope of their powers and 
23duties as trustees.
 
 
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1    The investment board established under Article 22A of this 
2Code may indemnify and protect its members against all damage 
3claims and suits, including defense thereof, when damages are 
4sought for negligent or wrongful acts alleged to have been 
5committed in the scope of their powers and duties as members. 
6    (b)  Except as provided in subsection (a), every Every 
7retirement system, pension
fund or other system or fund 
8established under this Code may indemnify and
protect the 
9trustees, staff and consultants against all damage claims
and 
10suits, including defense thereof, when damages are sought for 
11negligent
or wrongful acts alleged to have been committed in 
12the scope of employment
or under the direction of the trustees.  
13However, the trustees, staff and
consultants shall not be 
14indemnified for willful wilful misconduct and gross 
15negligence.
Each board is authorized to insure against loss or 
16liability of the trustees,
staff and consultants which may 
17result from these damage claims.  This insurance
shall be 
18carried in a company which is licensed to write such coverage 
19in this State.

20(Source: P.A. 80-1364.)

 
21    Section 90. The State Mandates Act is amended by adding 
22Section 8.35 as follows:
 
23    (30 ILCS 805/8.35 new)
24    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 
 
 
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1of this Act, no reimbursement by the State is required for the 
2implementation of any mandate created by this amendatory Act of 
3the 97th General Assembly.
 
 
4    Section 99. Effective date. This Act takes effect upon 
5becoming law.