SB1613 97TH GENERAL ASSEMBLY

LRB097 07600 JDS 47711 b

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.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Section 1-107 as follows:

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

Sec. 1-107. Indemnification of trustees, consultants and employees of retirement systems and pension funds.

(a) Every retirement system, pension fund, or other system or fund established under this Code, other than a retirement system established under Article 2, 14, 15, 16, or 18 of this Code or the investment board established under Article 22A of this Code, must indemnify and protect the trustees against all damage claims and suits, including defense thereof, when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of their powers and duties as trustees.

Every retirement system established under Article 2, 14, 15, 16, or 18 of this Code may indemnify and protect the trustees against all damage claims and suits, including defense thereof, when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of their powers and duties as trustees.

The investment board established under Article 22A of this Code may indemnify and protect its members against all damage claims and suits, including defense thereof, when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of their powers and duties as members.

(b) Except as provided in subsection (a), every Every retirement system, pension fund or other system or fund established under this Code may indemnify and protect the trustees, staff and consultants against all damage claims and suits, including defense thereof, when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of employment or under the direction of the trustees. However, the trustees, staff and consultants shall not be indemnified for willful wilful misconduct and gross negligence. Each board is authorized to insure against loss or liability of the trustees, staff and consultants which may result from these damage claims. This insurance shall be carried in a company which is licensed to write such coverage in this State.

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

Section 90. The State Mandates Act is amended by adding Section 8.35 as follows:

(30 ILCS 805/8.35 new)

Sec. 8.35. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 97th General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.