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91_HB1412
LRB9101698EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 1-110.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Section 1-110 as follows:
7 (40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110)
8 Sec. 1-110. Prohibited transactions.
9 (a) A fiduciary with respect to a retirement system or
10 pension fund shall not cause the retirement system or pension
11 fund to engage in a transaction if he or she knows or should
12 know that such transaction constitutes a direct or indirect:
13 (1) Sale or exchange, or leasing of any property
14 from the retirement system or pension fund to a party in
15 interest for less than adequate consideration, or from a
16 party in interest to a retirement system or pension fund
17 for more than adequate consideration.
18 (2) Lending of money or other extension of credit
19 from the retirement system or pension fund to a party in
20 interest without the receipt of adequate security and a
21 reasonable rate of interest, or from a party in interest
22 to a retirement system or pension fund with the provision
23 of excessive security or an unreasonably high rate of
24 interest.
25 (3) Furnishing of goods, services or facilities
26 from the retirement system or pension fund to a party in
27 interest for less than adequate consideration, or from a
28 party in interest to a retirement system or pension fund
29 for more than adequate consideration.
30 (4) Transfer to, or use by or for the benefit of, a
31 party in interest of any assets of a retirement system or
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1 pension fund for less than adequate consideration.
2 (b) A fiduciary with respect to a retirement system or
3 pension fund established under this Code shall not:
4 (1) deal with the assets of the retirement system
5 or pension fund in his own interest or for his own
6 account;
7 (2) in his individual or any other capacity act in
8 any transaction involving the retirement system or
9 pension fund on behalf of a party whose interests are
10 adverse to the interests of the retirement system or
11 pension fund or the interests of its participants or
12 beneficiaries; or
13 (3) receive any consideration for his own personal
14 account from any party dealing with the retirement system
15 or pension fund in connection with a transaction
16 involving the assets of the retirement system or pension
17 fund; or
18 (4) invest any assets of the retirement system or
19 pension fund in tobacco company securities after December
20 31, 1999. This item (4) does not require the liquidation
21 of any investment in existence on that date, but the
22 fiduciary is encouraged to review the advisability of
23 continuing any existing investment in tobacco company
24 securities in light of the public policy of this item (4)
25 discouraging such investments and to consider the
26 advantages of liquidating the investment at an
27 appropriate time. For the purposes of this item (4),
28 "tobacco company securities" means securities issued by a
29 company or other business entity that manufactures
30 tobacco or tobacco products for human use.
31 (c) Nothing in this Section shall be construed to
32 prohibit any trustee from:
33 (1) Receiving any benefit to which he may be
34 entitled as a participant or beneficiary in the
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1 retirement system or pension fund.
2 (2) Receiving any reimbursement of expenses
3 properly and actually incurred in the performance of his
4 duties with the retirement system or pension fund.
5 (3) Serving as a trustee in addition to being an
6 officer, employee, agent or other representative of a
7 party in interest.
8 (Source: P.A. 88-535.)
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.