96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0829

 

Introduced 2/9/2009, by Rep. Karen May

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-113.4

    Amends the Illinois Pension Code. In provisions concerning permitted investments for pension funds with net assets of $5,000,000 or more, (i) increases the amount of net assets that the pension fund must have for the provisions to apply from $5,000,000 or more to $10,000,000 or more, (ii) removes provisions requiring that securities are of a corporation created or existing under the laws of the United States or any state, district, or territory thereof and that the issuer of the stocks has been subject to the requirements of Section 12 of the federal Securities Exchange Act of 1934 and has been current with the filing requirements of specified Sections of that Act during the preceding 3 years, and (iii) increases the maximum percentage of the market value of the pension fund's net present assets in certain investments. Effective immediately.


LRB096 04607 AMC 14664 b

PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0829 LRB096 04607 AMC 14664 b

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 Section 1-113.4 as follows:
 
6     (40 ILCS 5/1-113.4)
7     Sec. 1-113.4. List of additional permitted investments for
8 pension funds with net assets of $10,000,000 $5,000,000 or
9 more.
10     (a) In addition to the items in Sections 1-113.2 and
11 1-113.3, a pension fund established under Article 3 or 4 that
12 has net assets of at least $10,000,000 $5,000,000 and has
13 appointed an investment adviser under Section 1-113.5 may,
14 through that investment adviser, invest a portion of its assets
15 in common and preferred stocks authorized for investments of
16 trust funds under the laws of the State of Illinois. The stocks
17 must meet all of the following requirements:
18         (1) The common stocks are listed on a national
19     securities exchange or board of trade (as defined in the
20     federal Securities Exchange Act of 1934 and set forth in
21     Section 3.G of the Illinois Securities Law of 1953) or
22     quoted in the National Association of Securities Dealers
23     Automated Quotation System National Market System (NASDAQ

 

 

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1     NMS).
2         (2) The securities are of a corporation created or
3     existing under the laws of the United States or any state,
4     district, or territory thereof and the corporation has been
5     in existence for at least 5 years.
6         (3) The corporation has not been in arrears on payment
7     of dividends on its preferred stock during the preceding 5
8     years.
9         (4) The market value of stock in any one corporation
10     does not exceed 5% of the cash and invested assets of the
11     pension fund, and the investments in the stock of any one
12     corporation do not exceed 5% of the total outstanding stock
13     of that corporation.
14         (5) The straight preferred stocks or convertible
15     preferred stocks are issued or guaranteed by a corporation
16     whose common stock qualifies for investment by the board.
17         (6) The issuer of the stocks has been subject to the
18     requirements of Section 12 of the federal Securities
19     Exchange Act of 1934 and has been current with the filing
20     requirements of Sections 13 and 14 of that Act during the
21     preceding 3 years.
22     (b) A pension fund's total investment in the items
23 authorized under this Section and Section 1-113.3 shall not
24 exceed 40% effective July 1, 2009; 45% effective July 1, 2010;
25 and 50% effective July 1, 2011 35% of the market value of the
26 pension fund's net present assets stated in its most recent

 

 

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1 annual report on file with the Division of Insurance within the
2 Department of Financial and Professional Regulation Illinois
3 Department of Insurance.
4     (c) A pension fund that invests funds under this Section
5 shall electronically file with the Division any reports of its
6 investment activities that the Division may require, at the
7 times and in the format required by the Division.
8 (Source: P.A. 90-507, eff. 8-22-97.)
 
9     Section 99. Effective date. This Act takes effect upon
10 becoming law.