Rep. Joseph M. Lyons

Filed: 5/17/2011

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1613

2    AMENDMENT NO. ______. Amend Senate Bill 1613 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 1-107 and by adding Sections 1-109.3 and
61-113.18 as follows:
 
7    (40 ILCS 5/1-107)  (from Ch. 108 1/2, par. 1-107)
8    Sec. 1-107. Indemnification of trustees, consultants and
9employees of retirement systems and pension funds.
10    (a) Every retirement system, pension fund, or other system
11or fund established under this Code, other than a retirement
12system established under Article 2, 14, 15, 16, or 18 of this
13Code or the investment board established under Article 22A of
14this Code, must indemnify and protect the trustees against all
15damage claims and suits, including defense thereof, when
16damages are sought for negligent or wrongful acts alleged to

 

 

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1have been committed in the scope of their powers and duties as
2trustees.
3    Every retirement system established under Article 2, 14,
415, 16, or 18 of this Code may indemnify and protect the
5trustees against all damage claims and suits, including defense
6thereof, when damages are sought for negligent or wrongful acts
7alleged to have been committed in the scope of their powers and
8duties as trustees.
9    The investment board established under Article 22A of this
10Code may indemnify and protect its members against all damage
11claims and suits, including defense thereof, when damages are
12sought for negligent or wrongful acts alleged to have been
13committed in the scope of their powers and duties as members.
14    Notwithstanding any other provision of this subsection
15(a), trustees and board members shall not be indemnified for
16willful misconduct and gross negligence.
17    (b) Except as provided in subsection (a), every Every
18retirement system, pension fund or other system or fund
19established under this Code may indemnify and protect the
20trustees, staff and consultants against all damage claims and
21suits, including defense thereof, when damages are sought for
22negligent or wrongful acts alleged to have been committed in
23the scope of employment or under the direction of the trustees.
24However, the trustees, staff and consultants shall not be
25indemnified for willful wilful misconduct and gross
26negligence. Each board is authorized to insure against loss or

 

 

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1liability of the trustees, staff and consultants which may
2result from these damage claims. This insurance shall be
3carried in a company which is licensed to write such coverage
4in this State.
5(Source: P.A. 80-1364.)
 
6    (40 ILCS 5/1-109.3)
7    Sec. 1-109.3. Training requirement for pension trustees.
8    (a) All elected and appointed trustees under Article 3 and
94 of this Code must participate in a mandatory trustee
10certification training seminar that consists of at least 32
11hours of initial trustee certification at a training facility
12that is accredited and affiliated with a State of Illinois
13certified college or university. This training must include
14without limitation all of the following:
15        (1) Duties and liabilities of a fiduciary under Article
16    1 of the Illinois Pension Code.
17        (2) Adjudication of pension claims.
18        (3) Basic accounting and actuarial training.
19        (4) Trustee ethics.
20        (5) The Illinois Open Meetings Act.
21        (6) The Illinois Freedom of Information Act.
22    The training required under this subsection (a) must be
23completed within the first 2 years after the year that a
24trustee takes office is elected or appointed under an Article 3
25or 4 pension fund. The elected and appointed trustees of an

 

 

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1Article 3 or 4 pension fund who are police officers (as defined
2in Section 3-106 of this Code) or firefighters (as defined in
3Section 4-106 of this Code) or are employed by the municipality
4shall be permitted time away from their duties to attend such
5training without reduction of accrued leave or benefit time.
6Active or appointed trustees serving on the effective date of
7this amendatory Act of the 96th General Assembly shall not be
8required to attend the training required under this subsection
9(a).
10    (b) Upon completion of, and in In addition to, the initial
11trustee certification training required under subsection (a),
12all elected and appointed trustees under Article 3 and 4 of
13this Code, including trustees serving on the effective date of
14this amendatory Act of the 96th General Assembly, shall also
15complete at least an additional participate in a minimum of 16
16hours of continuing trustee education during (i) the 2 years
17following the date by which the training required under
18subsection (a) must be completed and (ii) every 2 years
19thereafter each year after the first year that the trustee is
20elected or appointed. Ethics training completed under Section
211-113.18 may be applied toward the hours required under this
22subsection (b).
23    (c) The training required under this Section shall be paid
24for by the pension fund.
25    (d) Any board member who does not timely complete the
26training required under this Section is not eligible to serve

 

 

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1on the board of trustees of an Article 3 or 4 pension fund,
2unless the board member completes the missed training within 6
3months after the date the member failed to complete the
4required training. In the event of a board member's failure to
5complete the required training, a successor shall be appointed
6or elected, as applicable, for the unexpired term. A successor
7who is elected under such circumstances must be elected at a
8special election called by the board and conducted in the same
9manner as a regular election under Article 3 or 4, as
10applicable.
11(Source: P.A. 96-429, eff. 8-13-09.)
 
12    (40 ILCS 5/1-113.18)
13    Sec. 1-113.18. Ethics training. All board members of a
14retirement system, pension fund, or investment board created
15under this Code must attend ethics training of at least 8 hours
16every 2 years per year. The training required under this
17Section shall include training on ethics, fiduciary duty, and
18investment issues and any other curriculum that the board of
19the retirement system, pension fund, or investment board
20establishes as being important for the administration of the
21retirement system, pension fund, or investment board. The
22Supreme Court of Illinois shall be responsible for ethics
23training and curriculum for judges designated by the Court to
24serve as members of a retirement system, pension fund, or
25investment board. Each board shall annually certify its

 

 

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1members' compliance with this Section and submit an annual
2certification to the Division of Insurance of the Department of
3Financial and Professional Regulation. Judges shall annually
4certify compliance with the ethics training requirement and
5shall submit an annual certification to the Chief Justice of
6the Supreme Court of Illinois. Ethics training completed under
7this Section may be applied toward the continuing education
8requirement in subsection (b) of Section 1-109.3.
9(Source: P.A. 96-6, eff. 4-3-09.)
 
10    Section 90. The State Mandates Act is amended by adding
11Section 8.35 as follows:
 
12    (30 ILCS 805/8.35 new)
13    Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8
14of this Act, no reimbursement by the State is required for the
15implementation of any mandate created by this amendatory Act of
16the 97th General Assembly.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.".