Illinois General Assembly - Full Text of SB1169
Illinois General Assembly

Previous General Assemblies

Full Text of SB1169  95th General Assembly

SB1169 95TH GENERAL ASSEMBLY


 


 
95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB1169

 

Introduced 2/8/2007, by Sen. Jacqueline Y. Collins

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/1-110   from Ch. 108 1/2, par. 1-110

    Amends the Illinois Pension Code. Makes a technical change in a Section concerning prohibited transactions.


LRB095 10981 AMC 31287 b

PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1169 LRB095 10981 AMC 31287 b

1     AN ACT concerning finance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Pension Code is amended by changing
5 Section 1-110 as follows:
 
6     (40 ILCS 5/1-110)  (from Ch. 108 1/2, par. 1-110)
7     Sec. 1-110. Prohibited Transactions.
8     (a) A fiduciary with respect to a retirement system or
9 pension fund shall not cause the the retirement system or
10 pension fund to engage in a transaction if he or she knows or
11 should know that such transaction constitutes a direct or
12 indirect:
13         (1) Sale or exchange, or leasing of any property from
14     the retirement system or pension fund to a party in
15     interest for less than adequate consideration, or from a
16     party in interest to a retirement system or pension fund
17     for more than adequate consideration.
18         (2) Lending of money or other extension of credit from
19     the retirement system or pension fund to a party in
20     interest without the receipt of adequate security and a
21     reasonable rate of interest, or from a party in interest to
22     a retirement system or pension fund with the provision of
23     excessive security or an unreasonably high rate of

 

 

SB1169 - 2 - LRB095 10981 AMC 31287 b

1     interest.
2         (3) Furnishing of goods, services or facilities from
3     the retirement system or pension fund to a party in
4     interest for less than adequate consideration, or from a
5     party in interest to a retirement system or pension fund
6     for more than adequate consideration.
7         (4) Transfer to, or use by or for the benefit of, a
8     party in interest of any assets of a retirement system or
9     pension fund for less than adequate consideration.
10     (b) A fiduciary with respect to a retirement system or
11 pension fund established under this Code shall not:
12         (1) Deal with the assets of the retirement system or
13     pension fund in his own interest or for his own account;
14         (2) In his individual or any other capacity act in any
15     transaction involving the retirement system or pension
16     fund on behalf of a party whose interests are adverse to
17     the interests of the retirement system or pension fund or
18     the interests of its participants or beneficiaries; or
19         (3) Receive any consideration for his own personal
20     account from any party dealing with the retirement system
21     or pension fund in connection with a transaction involving
22     the assets of the retirement system or pension fund.
23     (c) Nothing in this Section shall be construed to prohibit
24 any trustee from:
25         (1) Receiving any benefit to which he may be entitled
26     as a participant or beneficiary in the retirement system or

 

 

SB1169 - 3 - LRB095 10981 AMC 31287 b

1     pension fund.
2         (2) Receiving any reimbursement of expenses properly
3     and actually incurred in the performance of his duties with
4     the retirement system or pension fund.
5         (3) Serving as a trustee in addition to being an
6     officer, employee, agent or other representative of a party
7     in interest.
8 (Source: P.A. 88-535.)