Sen. Chris Lauzen
Filed: 5/5/2009
 
 

 




 

 		












09600HB2557sam002

LRB096 09754 AMC 26104 a






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AMENDMENT TO HOUSE BILL 2557




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    AMENDMENT NO. ______. Amend House Bill 2557, on page 1, 
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line 5,  by replacing "Section 15-167" with "Sections 1-109 and 
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15-167"; and

 
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on page 3, immediately below line 5, by inserting the 
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following:
 



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    "(40 ILCS 5/1-109)  (from Ch. 108 1/2, par. 1-109)



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    Sec. 1-109. Duties of Fiduciaries. A fiduciary with
respect 
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to a retirement system or pension fund established
under this 
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Code shall discharge his or her duties with respect to the

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retirement system or pension fund solely in the interest of the 
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participants
and beneficiaries and:

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        (a) For the exclusive purpose of:

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            (1) Providing benefits to participants and their 
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        beneficiaries; and

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            (2) Defraying reasonable expenses of administering 
 


 






09600HB2557sam002
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LRB096 09754 AMC 26104 a




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        the retirement system
or pension fund;

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        (b) With the care, skill, prudence and diligence under 
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    the circumstances
then prevailing that a prudent man acting 
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    in a like capacity and familiar
with such matters would use 
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    in the conduct of an enterprise of a like character
with 
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    like aims;

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        (c) By diversifying the investments of the retirement 
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    system
or pension fund so as to minimize the risk of large 
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    losses, unless under
the circumstances
it is clearly 
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    prudent not to do so; and

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        (c-5) By requiring that the fund's investment advisors 
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    utilize investment
strategies designed to ensure that all 
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    securities transactions executed on behalf of participants 
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    and beneficiaries are in such a manner that the total cost 
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    (both explicit and implicit) and total proceeds in each 
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    transaction is the most favorable under the circumstances; 
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    and 
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        (d) In accordance with the provisions of the Article of 
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    the Pension Code
governing the retirement system or pension 
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    fund.

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(Source: P.A. 82-960.)".