101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB2312

 

Introduced 11/14/2019, by Sen. Jason Plummer

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/22B-118
40 ILCS 5/22C-118

    If and only if Senate Bill 1300 of the 101st General Assembly becomes law in the form in which it passed both houses, amends the Police Officers' Pension Investment Fund and the Firefighters' Pension Investment Fund Articles of the Illinois Pension Code. Provides that if a participating pension fund account is commingled with any other participating pension fund account, then the balance of the commingled accounts shall be returned to those participating pension funds in accordance with the value of the pension fund assets attributable to each fund. Effective immediately or on the date Senate Bill 1300 of the 101st General Assembly takes effect, whichever is later.


LRB101 15473 RPS 64814 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2312LRB101 15473 RPS 64814 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. If and only if Senate Bill 1300 of the 101st
5General Assembly becomes law in the form in which it passed
6both houses on November 14, 2019, then the Illinois Pension
7Code is amended by changing Sections 22B-118 and 22C-118 as
8follows:
 
9    (40 ILCS 5/22B-118)
10    Sec. 22B-118. Operation and administration of the Fund.
11    (a) The operation and administration of the Fund shall be
12managed by an executive director. No later than 2 months after
13the transition board is appointed or as soon thereafter as may
14be practicable, the transition board shall appoint an interim
15executive director who shall serve until a permanent executive
16director is appointed by the board, with such appointment to be
17made no later than 6 months after the end of the transition
18period. The executive director shall act subject to and under
19the supervision of the board and the board shall fix the
20compensation of the executive director.
21    (b) The board may appoint one or more custodians to
22facilitate the transfer of pension fund assets during the
23transition period, and subsequently to provide custodial and

 

 

SB2312- 2 -LRB101 15473 RPS 64814 b

1related fiduciary services on behalf of the board, and enter
2into contracts for such services. The board may also appoint
3external legal counsel and an independent auditing firm and may
4appoint investment advisors and other consultants as it
5determines to be appropriate and enter into contracts for such
6services. With approval of the board, the executive director
7may retain such other consultants, advisors, fiduciaries, and
8service providers as may be desirable and enter into contracts
9for such services.
10    (c) The board shall separately calculate account balances
11for each participating pension fund. The operations and
12financial condition of each participating pension fund account
13shall not affect the account balance of any other participating
14pension fund. Further, investment returns earned by the Fund
15shall be allocated and distributed pro rata among each
16participating pension fund account in accordance with the value
17of the pension fund assets attributable to each fund.
18    If a participating pension fund account is commingled with
19any other participating pension fund account, then the balance
20of the commingled accounts shall be returned to those
21participating pension funds in accordance with the value of the
22pension fund assets attributable to each fund.
23    (d) With approval of the board, the executive director may
24employ such personnel, professional or clerical, as may be
25desirable and fix their compensation. The appointment and
26compensation of the personnel, including the executive

 

 

SB2312- 3 -LRB101 15473 RPS 64814 b

1director, shall not be subject to the Personnel Code.
2    (e) The board shall annually adopt a budget to support its
3operations and administration. The board shall apply moneys
4derived from the pension fund assets transferred and under its
5control to pay the costs and expenses incurred in the operation
6and administration of the Fund. The board shall from time to
7time transfer moneys and other assets to the participating
8pension funds as required for the participating pension funds
9to pay expenses, benefits, and other required payments to
10beneficiaries in the amounts and at the times prescribed in
11this Code.
12    (f) The board may exercise any of the powers granted to
13boards of trustees of pension funds under Sections 1-107 and
141-108 of this Code and may by resolution provide for the
15indemnification of its members and any of its officers,
16advisors, or employees in a manner consistent with those
17Sections.
18    (g) An office for meetings of the board and for its
19administrative personnel shall be established at any suitable
20place within the State as may be selected by the board. All
21books and records of the board shall be kept in such office.
22    (h) The board shall contract for a blanket fidelity bond in
23the penal sum of not less than $1,000,000 to cover members of
24the board of trustees, the executive director, and all other
25employees of the board, conditioned for the faithful
26performance of the duties of their respective offices, the

 

 

SB2312- 4 -LRB101 15473 RPS 64814 b

1premium on which shall be paid by the board.
2(Source: 10100SB1300ham005.)
 
3    (40 ILCS 5/22C-118)
4    Sec. 22C-118. Operation and administration of the Fund.
5    (a) The operation and administration of the Fund shall be
6managed by an executive director. No later than 2 months after
7the transition board is appointed or as soon thereafter as may
8be practicable, the transition board shall appoint an interim
9executive director who shall serve until a permanent executive
10director is appointed by the board, with such appointment to be
11made no later than 6 months after the end of the transition
12period. The executive director shall act subject to and under
13the supervision of the board and the board shall fix the
14compensation of the executive director.
15    (b) The board may appoint one or more custodians to
16facilitate the transfer of pension fund assets during the
17transition period, and subsequently to provide custodial and
18related fiduciary services on behalf of the board, and enter
19into contracts for such services. The board may also appoint
20external legal counsel and an independent auditing firm and may
21appoint investment advisors and other consultants as it
22determines to be appropriate and enter into contracts for such
23services. With approval of the board, the executive director
24may retain such other consultants, advisors, fiduciaries, and
25service providers as may be desirable and enter into contracts

 

 

SB2312- 5 -LRB101 15473 RPS 64814 b

1for such services.
2    (c) The board shall separately calculate account balances
3for each participating pension fund. The operations and
4financial condition of each participating pension fund account
5shall not affect the account balance of any other participating
6pension fund. Further, investment returns earned by the Fund
7shall be allocated and distributed pro rata among each
8participating pension fund account in accordance with the value
9of the pension fund assets attributable to each fund.
10    If a participating pension fund account is commingled with
11any other participating pension fund account, then the balance
12of the commingled accounts shall be returned to those
13participating pension funds in accordance with the value of the
14pension fund assets attributable to each fund.
15    (d) With approval of the board, the executive director may
16employ such personnel, professional or clerical, as may be
17desirable and fix their compensation. The appointment and
18compensation of the personnel, including the executive
19director, shall not be subject to the Personnel Code.
20    (e) The board shall annually adopt a budget to support its
21operations and administration. The board shall apply moneys
22derived from the pension fund assets transferred and under its
23control to pay the costs and expenses incurred in the operation
24and administration of the Fund. The board shall from time to
25time transfer moneys and other assets to the participating
26pension funds as required for the participating pension funds

 

 

SB2312- 6 -LRB101 15473 RPS 64814 b

1to pay expenses, benefits, and other required payments to
2beneficiaries in the amounts and at the times prescribed in
3this Code.
4    (f) The board may exercise any of the powers granted to
5boards of trustees of pension funds under Sections 1-107 and
61-108 of this Code and may by resolution provide for the
7indemnification of its members and any of its officers,
8advisors, or employees in a manner consistent with those
9Sections.
10    (g) An office for meetings of the board and for its
11administrative personnel shall be established at any suitable
12place within the State as may be selected by the board. All
13books and records of the board shall be kept in such office.
14    (h) The board shall contract for a blanket fidelity bond in
15the penal sum of not less than $1,000,000 to cover members of
16the board of trustees, the executive director, and all other
17employees of the board, conditioned for the faithful
18performance of the duties of their respective offices, the
19premium on which shall be paid by the board.
20(Source: 10100SB1300ham005.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law or on the date Senate Bill 1300 of the 101st
23General Assembly in the form in which it passed both houses on
24November 14, 2019 takes effect, whichever is later.