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| | SB2490 Engrossed | | LRB100 15959 RPS 31076 b |
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1 | | AN ACT concerning public employee benefits.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Illinois Pension Code is amended by changing |
5 | | Section 1A-104 as follows:
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6 | | (40 ILCS 5/1A-104)
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7 | | Sec. 1A-104. Examinations and investigations.
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8 | | (a) The Division shall make periodic examinations and |
9 | | investigations of all
pension funds established under this Code |
10 | | and maintained for the benefit of
employees and officers of |
11 | | governmental units in the State of Illinois.
However, in lieu |
12 | | of making an examination and investigation, the Division
may |
13 | | accept and rely upon a report of audit or examination of any |
14 | | pension fund
made by an independent certified public accountant |
15 | | pursuant to the provisions
of the Article of this Code |
16 | | governing the pension fund. The acceptance of the
report of |
17 | | audit or examination does not bar the Division from making a |
18 | | further
audit, examination, and investigation if deemed |
19 | | necessary by the Division.
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20 | | The Department may implement a flexible system of |
21 | | examinations under
which it directs resources as it deems |
22 | | necessary or appropriate. In
consultation with the pension fund |
23 | | being examined, the Division may retain
attorneys, independent |
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| | SB2490 Engrossed | - 2 - | LRB100 15959 RPS 31076 b |
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1 | | actuaries, independent certified public accountants, and
other |
2 | | professionals and specialists as examiners, the cost of which |
3 | | (except in
the case of pension funds established under Article |
4 | | 3 or 4) shall be borne by
the pension fund that is the subject |
5 | | of the examination.
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6 | | (b) The Division shall examine or investigate each pension |
7 | | fund established
under Article 3 or Article 4 of this Code. The |
8 | | schedule of each examination shall be on a periodic basis as |
9 | | determined by the Division based on a risk review across funds. |
10 | | The risk review
determination shall include, but not be limited |
11 | | to, the following criteria: |
12 | | (1) the funding level of the pension fund; |
13 | | (2) the employer contribution history; |
14 | | (3) the investment return history of the fund; |
15 | | (4) consideration of any complaints received from the |
16 | | pension fund or its
participants; and |
17 | | (5) any previous compliance issues related to the fund |
18 | | such that each fund shall be examined once every 3 years .
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19 | | Each examination shall include , but not be limited to, a |
20 | | review of the following:
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21 | | (1) an audit of financial transactions, investment |
22 | | policies, and
procedures;
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23 | | (2) an examination of books, records, documents, |
24 | | files, and other
pertinent memoranda relating to |
25 | | financial, statistical, and administrative
operations;
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26 | | (3) a review of policies and procedures maintained for |
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| | SB2490 Engrossed | - 3 - | LRB100 15959 RPS 31076 b |
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1 | | the administration
and operation of the pension fund;
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2 | | (4) a determination of whether or not full effect is |
3 | | being given to the
statutory provisions governing the |
4 | | operation of the pension fund , including the employer's |
5 | | requirement to make a
lawful contribution consistent with |
6 | | Section 4-118 ;
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7 | | (5) a determination of whether or not the |
8 | | administrative policies in force
are in accord with the |
9 | | purposes of the statutory provisions and effectively
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10 | | protect and preserve the rights and equities of the |
11 | | participants;
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12 | | (6) a determination of whether or not proper financial |
13 | | and statistical
records have been established and adequate |
14 | | documentary evidence is recorded and
maintained in support |
15 | | of the several types of annuity and benefit payments
being |
16 | | made; and
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17 | | (7) a determination of whether or not the calculations |
18 | | made by the fund for the payment of all annuities and |
19 | | benefits are accurate. |
20 | | In addition, the Division may conduct investigations, |
21 | | which shall be
identified as such and which may include one or |
22 | | more of the items listed in
this subsection.
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23 | | A copy of the report of examination or investigation as |
24 | | prepared by the
Division shall be submitted to the secretary of |
25 | | the board of trustees of the
pension fund examined or |
26 | | investigated and to the chief executive officer of the |
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1 | | municipality. The Director, upon request, shall grant
a hearing |
2 | | to the officers or trustees of the pension fund or their duly
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3 | | appointed representatives, upon any facts contained in the |
4 | | report of
examination. The hearing shall be conducted before |
5 | | filing the report or making
public any information contained in |
6 | | the report. The Director may withhold the
report from public |
7 | | inspection for up to 60 days following the hearing.
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8 | | (Source: P.A. 95-950, eff. 8-29-08.)
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9 | | Section 99. Effective date. This Act takes effect upon |
10 | | becoming law.
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