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.