Full Text of SB1389 101st General Assembly
SB1389 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB1389 Introduced 2/13/2019, by Sen. Chuck Weaver SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/1-109.1 | from Ch. 108 1/2, par. 1-109.1 | 40 ILCS 5/1-110 | from Ch. 108 1/2, par. 1-110 | 40 ILCS 5/1-110.6 | | 40 ILCS 5/1-113.1 | | 40 ILCS 5/1-113.4a | | 40 ILCS 5/1-113.5 | | 40 ILCS 5/1-113.14 | | 40 ILCS 5/1-113.16 | | 40 ILCS 5/1-113.20 | | 40 ILCS 5/1-150 | | 40 ILCS 5/1-113.2 rep. | | 40 ILCS 5/1-113.3 rep. | | 40 ILCS 5/1-113.4 rep. | |
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Amends the General Provisions Article of the Illinois Pension Code. Removes provisions specifying, based on the net assets of the pension fund, types of investments that a downstate police or downstate firefighter pension fund may make. Removes provisions requiring an investment adviser for investments in certain common and preferred stocks. Removes certain limitations on the percentage of a pension fund's net assets that may be invested in certain types of investments. Makes conforming changes. Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning public employee benefits.
| 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 | | Sections 1-109.1, 1-110, 1-110.6, 1-113.1, 1-113.4a, 1-113.5, | 6 | | 1-113.14, 1-113.16, 1-113.20, and 1-150 as follows:
| 7 | | (40 ILCS 5/1-109.1) (from Ch. 108 1/2, par. 1-109.1)
| 8 | | Sec. 1-109.1. Allocation and delegation of fiduciary | 9 | | duties.
| 10 | | (1) Subject to the provisions of Section 22A-113 of this | 11 | | Code and
subsections (2) and (3) of this Section, the board of | 12 | | trustees of a
retirement system or pension fund established | 13 | | under this Code may:
| 14 | | (a) Appoint one or more investment managers as | 15 | | fiduciaries to manage
(including the power to acquire and | 16 | | dispose of) any assets of the
retirement system or pension | 17 | | fund; and
| 18 | | (b) Allocate duties among themselves and designate | 19 | | others as fiduciaries
to carry out specific fiduciary | 20 | | activities other than the management of the
assets of the | 21 | | retirement system or pension fund.
| 22 | | (2) The board of trustees of a pension fund established | 23 | | under Article 5, 6,
8, 9, 10, 11, 12 or 17 of this Code may not |
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| 1 | | transfer its investment authority,
nor transfer the assets of | 2 | | the fund to any other person or entity for the
purpose of | 3 | | consolidating or merging its assets and management with any | 4 | | other
pension fund or public investment authority, unless the | 5 | | board resolution
authorizing such transfer is submitted for | 6 | | approval to the contributors and
pensioners of the fund at | 7 | | elections held not less than 30 days after the
adoption of such | 8 | | resolution by the board, and such resolution is approved by a
| 9 | | majority of the votes cast on the question in both the | 10 | | contributors election
and the pensioners election. The | 11 | | election procedures and qualifications
governing the election | 12 | | of trustees shall govern the submission of resolutions
for | 13 | | approval under this paragraph, insofar as they may be made | 14 | | applicable.
| 15 | | (3) Pursuant to subsections (h) and (i) of Section 6 of | 16 | | Article VII of
the Illinois Constitution, the investment | 17 | | authority of boards of trustees
of retirement systems and | 18 | | pension funds established under this Code is declared
to be a | 19 | | subject of exclusive State jurisdiction, and the concurrent | 20 | | exercise
by a home rule unit of any power affecting such | 21 | | investment authority is
hereby specifically denied and | 22 | | preempted.
| 23 | | (4) For the purposes of this Code, "emerging investment | 24 | | manager" means a
qualified investment adviser that manages an | 25 | | investment portfolio of at
least $10,000,000 but less than | 26 | | $10,000,000,000 and is a
"minority-owned business", |
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| 1 | | "women-owned business" or "business owned by a person with a | 2 | | disability" as those terms are
defined in the Business | 3 | | Enterprise for Minorities, Women, and Persons with | 4 | | Disabilities Act.
| 5 | | It is hereby declared to be the public policy of the State | 6 | | of Illinois to
encourage the trustees of public employee | 7 | | retirement systems, pension funds, and investment boards
to use | 8 | | emerging investment managers in managing their system's | 9 | | assets, encompassing all asset classes, and increase the | 10 | | racial, ethnic, and gender diversity of its fiduciaries, to the
| 11 | | greatest extent feasible within the bounds of financial and | 12 | | fiduciary
prudence, and to take affirmative steps to remove any | 13 | | barriers to the full
participation in investment opportunities
| 14 | | afforded by those retirement systems, pension funds, and | 15 | | investment boards.
| 16 | | A On or before January 1, 2010, a retirement system, | 17 | | pension fund, or investment board subject to this Code, except | 18 | | those under Article 3 or 4 whose investments are restricted by | 19 | | Section 1-113.2 of this Code, shall adopt a policy that sets | 20 | | forth goals for utilization of emerging investment managers. | 21 | | This policy shall include quantifiable goals for the management | 22 | | of assets in specific asset classes by emerging investment | 23 | | managers. The retirement system, pension fund, or investment | 24 | | board shall establish 3 separate goals for: (i) emerging | 25 | | investment managers that are minority-owned businesses; (ii) | 26 | | emerging investment managers that are women-owned businesses; |
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| 1 | | and (iii) emerging investment managers that are businesses | 2 | | owned by a person with a disability. The goals established | 3 | | shall be based on the percentage of total dollar amount of | 4 | | investment service contracts let to minority-owned businesses, | 5 | | women-owned businesses, and businesses owned by a person with a | 6 | | disability, as those terms are defined in the Business | 7 | | Enterprise for Minorities, Women, and Persons with | 8 | | Disabilities Act. The retirement system, pension fund, or | 9 | | investment board shall annually review the goals established | 10 | | under this subsection. | 11 | | If in any case an emerging investment manager meets the | 12 | | criteria established by a board for a specific search and meets | 13 | | the criteria established by a consultant for that search, then | 14 | | that emerging investment manager shall receive an invitation by | 15 | | the board of trustees, or an investment committee of the board | 16 | | of trustees, to present his or her firm for final consideration | 17 | | of a contract. In the case where multiple emerging investment | 18 | | managers meet the criteria of this Section, the staff may | 19 | | choose the most qualified firm or firms to present to the | 20 | | board.
| 21 | | The use of an emerging investment manager does not | 22 | | constitute a transfer
of investment authority for the purposes | 23 | | of subsection (2) of this Section.
| 24 | | (5) Each retirement system, pension fund, or investment | 25 | | board subject to this Code, except those under Article 3 or 4 | 26 | | whose investments are restricted by Section 1-113.2 of this |
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| 1 | | Code, shall establish a policy that sets forth goals for | 2 | | increasing the racial, ethnic, and gender diversity of its | 3 | | fiduciaries, including its consultants and senior staff. Each | 4 | | retirement system, pension fund, or
investment board shall make | 5 | | its best efforts to ensure that
the racial and ethnic makeup of | 6 | | its senior administrative
staff represents the racial and | 7 | | ethnic makeup of its
membership. Each system, fund, and | 8 | | investment board shall annually review the goals established | 9 | | under this subsection. | 10 | | (6) A On or before January 1, 2010, a retirement system, | 11 | | pension fund, or investment board subject to this Code, except | 12 | | those under Article 3 or 4 whose investments are restricted by | 13 | | Section 1-113.2 of this Code, shall adopt a policy that sets | 14 | | forth goals for utilization of businesses owned by minorities, | 15 | | women, and persons with disabilities for all contracts and | 16 | | services. The goals established shall be based on the | 17 | | percentage of total dollar amount of all contracts let to | 18 | | minority-owned businesses, women-owned businesses, and | 19 | | businesses owned by a person with a disability, as those terms | 20 | | are defined in the Business Enterprise for Minorities, Women, | 21 | | and Persons with Disabilities Act. The retirement system, | 22 | | pension fund, or investment board shall annually review the | 23 | | goals established under this subsection. | 24 | | (7) A On or before January 1, 2010, a retirement system, | 25 | | pension fund, or investment board subject to this Code, except | 26 | | those under Article 3 or 4 whose investments are restricted by |
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| 1 | | Section 1-113.2 of this Code, shall adopt a policy that sets | 2 | | forth goals for increasing the utilization of minority | 3 | | broker-dealers. For the purposes of this Code, "minority | 4 | | broker-dealer" means a qualified broker-dealer who meets the | 5 | | definition of "minority-owned business", "women-owned | 6 | | business", or "business owned by a person with a disability", | 7 | | as those terms are defined in the Business Enterprise for | 8 | | Minorities, Women, and Persons with Disabilities Act. The | 9 | | retirement system, pension fund, or investment board shall | 10 | | annually review the goals established under this Section. | 11 | | (8) Each retirement system, pension fund, and investment | 12 | | board subject to this Code, except those under Article 3 or 4 | 13 | | whose investments are restricted by Section 1-113.2 of this | 14 | | Code, shall submit a report to the Governor and the General | 15 | | Assembly by January 1 of each year that includes the following: | 16 | | (i) the policy adopted under subsection (4) of this Section, | 17 | | including the names and addresses of the emerging investment | 18 | | managers used, percentage of the assets under the investment | 19 | | control of emerging investment managers for the 3 separate | 20 | | goals, and the actions it has undertaken to increase the use of | 21 | | emerging investment managers, including encouraging other | 22 | | investment managers to use emerging investment managers as | 23 | | subcontractors when the opportunity arises; (ii) the policy | 24 | | adopted under subsection (5) of this Section; (iii) the policy | 25 | | adopted under subsection (6) of this Section; (iv) the policy | 26 | | adopted under subsection (7) of this Section, including |
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| 1 | | specific actions undertaken to increase the use of minority | 2 | | broker-dealers; and (v) the policy adopted under subsection (9) | 3 | | of this Section. | 4 | | (9) A On or before February 1, 2015, a retirement system, | 5 | | pension fund, or investment board subject to this Code, except | 6 | | those under Article 3 or 4 whose investments are restricted by | 7 | | Section 1-113.2 of this Code, shall adopt a policy that sets | 8 | | forth goals for increasing the utilization of minority | 9 | | investment managers. For the purposes of this Code, "minority | 10 | | investment manager" means a qualified investment manager that | 11 | | manages an investment portfolio and meets the definition of | 12 | | "minority-owned business", "women-owned business", or | 13 | | "business owned by a person with a disability", as those terms | 14 | | are defined in the Business Enterprise for Minorities, Women, | 15 | | and Persons with Disabilities Act. | 16 | | It is hereby declared to be the public policy of the State | 17 | | of Illinois to
encourage the trustees of public employee | 18 | | retirement systems, pension funds, and investment boards
to use | 19 | | minority investment managers in managing their systems' | 20 | | assets, encompassing all asset classes, and to increase the | 21 | | racial, ethnic, and gender diversity of their fiduciaries, to | 22 | | the
greatest extent feasible within the bounds of financial and | 23 | | fiduciary
prudence, and to take affirmative steps to remove any | 24 | | barriers to the full
participation in investment opportunities
| 25 | | afforded by those retirement systems, pension funds, and | 26 | | investment boards. |
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| 1 | | The retirement system, pension fund, or investment board | 2 | | shall establish 3 separate goals for: (i) minority investment | 3 | | managers that are minority-owned businesses; (ii) minority | 4 | | investment managers that are women-owned businesses; and (iii) | 5 | | minority investment managers that are businesses owned by a | 6 | | person with a disability. The retirement system, pension fund, | 7 | | or investment board shall annually review the goals established | 8 | | under this Section. | 9 | | If in any case a minority investment manager meets the | 10 | | criteria established by a board for a specific search and meets | 11 | | the criteria established by a consultant for that search, then | 12 | | that minority investment manager shall receive an invitation by | 13 | | the board of trustees, or an investment committee of the board | 14 | | of trustees, to present his or her firm for final consideration | 15 | | of a contract. In the case where multiple minority investment | 16 | | managers meet the criteria of this Section, the staff may | 17 | | choose the most qualified firm or firms to present to the | 18 | | board. | 19 | | The use of a minority investment manager does not | 20 | | constitute a transfer
of investment authority for the purposes | 21 | | of subsection (2) of this Section. | 22 | | (10) Beginning January 1, 2016, it shall be the | 23 | | aspirational goal for a retirement system, pension fund, or | 24 | | investment board subject to this Code to use emerging | 25 | | investment managers for not less than 20% of the total funds | 26 | | under management. Furthermore, it shall be the aspirational |
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| 1 | | goal that not less than 20% of investment advisors be | 2 | | minorities, women, and persons with disabilities as those terms | 3 | | are defined in the Business Enterprise for Minorities, Women, | 4 | | and Persons with Disabilities Act. It shall be the aspirational | 5 | | goal to utilize businesses owned by minorities, women, and | 6 | | persons with disabilities for not less than 20% of contracts | 7 | | awarded for "information technology services", "accounting | 8 | | services", "insurance brokers", "architectural and engineering | 9 | | services", and "legal services" as those terms are defined in | 10 | | the Act. | 11 | | (Source: P.A. 99-462, eff. 8-25-15; 100-391, eff. 8-25-17; | 12 | | 100-902, eff. 8-17-18.)
| 13 | | (40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110)
| 14 | | Sec. 1-110. Prohibited Transactions.
| 15 | | (a) A fiduciary with respect to a retirement system, | 16 | | pension fund, or investment board shall
not cause the | 17 | | retirement system or pension fund to engage in a transaction if
| 18 | | he or she knows or should know that such transaction | 19 | | constitutes a direct or
indirect:
| 20 | | (1) Sale or exchange, or leasing of any property from | 21 | | the retirement
system
or pension fund to a party in | 22 | | interest for less than adequate consideration,
or from a | 23 | | party in interest to a retirement system or pension fund | 24 | | for more
than adequate consideration.
| 25 | | (2) Lending of money or other extension of credit from |
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| 1 | | the retirement
system or pension fund to a party in | 2 | | interest without the receipt of adequate
security and a | 3 | | reasonable rate of interest, or from a party in interest to
| 4 | | a retirement system or pension fund with the provision of | 5 | | excessive security
or an unreasonably high rate of | 6 | | interest.
| 7 | | (3) Furnishing of goods, services or facilities from | 8 | | the retirement
system or pension fund to a party in | 9 | | interest for less than adequate
consideration, or from a | 10 | | party in interest to a retirement system or
pension fund | 11 | | for more than adequate consideration.
| 12 | | (4) Transfer to, or use by or for the benefit of, a | 13 | | party in interest
of any assets of a retirement system or | 14 | | pension fund for less than adequate
consideration.
| 15 | | (b) A fiduciary with respect to a retirement system or | 16 | | pension fund
established under this Code shall not:
| 17 | | (1) Deal with the assets of the retirement system or | 18 | | pension fund in his
own interest or for his own account;
| 19 | | (2) In his individual or any other capacity act in any | 20 | | transaction
involving the retirement system or pension | 21 | | fund on behalf of a party whose
interests are adverse to | 22 | | the interests of the retirement system or pension fund
or | 23 | | the interests of its participants or beneficiaries; or
| 24 | | (3) Receive any consideration for his own personal | 25 | | account from any party
dealing with the retirement system | 26 | | or pension fund in connection with a
transaction involving |
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| 1 | | the assets of the retirement system or pension
fund.
| 2 | | (c) Nothing in this Section shall be construed to prohibit | 3 | | any trustee from:
| 4 | | (1) Receiving any benefit to which he may be entitled | 5 | | as a participant
or beneficiary in the retirement system or | 6 | | pension fund.
| 7 | | (2) Receiving any reimbursement of expenses properly | 8 | | and actually incurred
in the performance of his duties with | 9 | | the retirement system or pension fund.
| 10 | | (3) Serving as a trustee in addition to being an | 11 | | officer, employee, agent
or other representative of a party | 12 | | in interest.
| 13 | | (d) A fiduciary of a pension fund established under Article | 14 | | 3 or 4 shall
not knowingly cause or advise the pension fund to | 15 | | engage in an investment transaction when the fiduciary (i) has | 16 | | any direct interest in
the income, gains, or profits of the | 17 | | investment adviser through which the investment transaction is | 18 | | made or (ii) has a business relationship with that investment | 19 | | adviser that would result in a pecuniary benefit to the | 20 | | fiduciary as a result of the investment transaction. | 21 | | Violation of this subsection (d) is a Class 4 felony.
| 22 | | (e) A board member, employee, or consultant with respect to | 23 | | a retirement system, pension fund, or investment board subject | 24 | | to this Code, except those under Article 3 or 4 whose | 25 | | investments are restricted by Section 1-113.2 , shall not | 26 | | knowingly cause or advise the retirement system, pension fund, |
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| 1 | | or investment board to engage in an investment transaction with | 2 | | an investment adviser when the board member, employee, | 3 | | consultant, or their spouse (i) has any direct interest in the | 4 | | income, gains, or profits of the investment adviser through | 5 | | which the investment transaction is made or (ii) has a | 6 | | relationship with that investment adviser that would result in | 7 | | a pecuniary benefit to the board member, employee, or | 8 | | consultant or spouse of such board member, employee, or | 9 | | consultant as a result of the investment transaction. For | 10 | | purposes of this subsection (e), a consultant includes an | 11 | | employee or agent of a consulting firm who has greater than | 12 | | 7.5% ownership of the consulting firm. | 13 | | Violation of this subsection (e) is a Class 4 felony. | 14 | | (Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.)
| 15 | | (40 ILCS 5/1-110.6)
| 16 | | Sec. 1-110.6. Transactions prohibited by retirement | 17 | | systems; Republic of the Sudan. | 18 | | (a) The Government of the United States has determined that | 19 | | Sudan is a nation that sponsors terrorism and genocide. The | 20 | | General Assembly finds that acts of terrorism have caused | 21 | | injury and death to Illinois and United States residents who | 22 | | serve in the United States military, and pose a significant | 23 | | threat to safety and health in Illinois. The General Assembly | 24 | | finds that public employees and their families, including | 25 | | police officers and firefighters, are more likely than others |
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| 1 | | to be affected by acts of terrorism. The General Assembly finds | 2 | | that Sudan continues to solicit investment and commercial | 3 | | activities by forbidden entities, including private market | 4 | | funds. The General Assembly finds that investments in forbidden | 5 | | entities are inherently and unduly risky, not in the interests | 6 | | of public pensioners and Illinois taxpayers, and against public | 7 | | policy. The General Assembly finds that Sudan's capacity to | 8 | | sponsor terrorism and genocide depends on or is supported by | 9 | | the activities of forbidden entities. The General Assembly | 10 | | further finds and re-affirms that the people of the State, | 11 | | acting through their representatives, do not want to be | 12 | | associated with forbidden entities, genocide, and terrorism.
| 13 | | (b) For purposes of this Section: | 14 | | "Business operations" means maintaining, selling, or | 15 | | leasing equipment, facilities, personnel, or any other | 16 | | apparatus of business or commerce in the Republic of the Sudan, | 17 | | including the ownership or possession of real or personal | 18 | | property located in the Republic of the Sudan. | 19 | | "Certifying company" means a company that (1) directly | 20 | | provides asset management services or advice to a retirement | 21 | | system or (2) as directly authorized or requested by a | 22 | | retirement system (A) identifies particular investment options | 23 | | for consideration or approval; (B) chooses particular | 24 | | investment options; or (C) allocates particular amounts to be | 25 | | invested. If no company meets the criteria set forth in this | 26 | | paragraph, then "certifying company" shall mean the retirement |
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| 1 | | system officer who, as designated by the board, executes the | 2 | | investment decisions made by the board, or, in the alternative, | 3 | | the company that the board authorizes to complete the | 4 | | certification as the agent of that officer.
| 5 | | "Company" is any entity capable of affecting commerce, | 6 | | including but not limited to (i) a government, government | 7 | | agency, natural person, legal person, sole proprietorship, | 8 | | partnership, firm, corporation, subsidiary, affiliate, | 9 | | franchisor, franchisee, joint venture, trade association, | 10 | | financial institution, utility, public franchise, provider of | 11 | | financial services, trust, or enterprise; and (ii) any | 12 | | association thereof. | 13 | | "Department" means the Public Pension Division of the | 14 | | Department of Financial and Professional Regulation.
| 15 | | "Forbidden entity" means any of the following: | 16 | | (1) The government of the Republic of the Sudan and any | 17 | | of its agencies, including but not limited to political | 18 | | units and subdivisions;
| 19 | | (2) Any company that is wholly or partially managed or | 20 | | controlled by the government of the Republic of the Sudan | 21 | | and any of its agencies, including but not limited to | 22 | | political units and subdivisions; | 23 | | (3) Any company (i) that is established or organized | 24 | | under the laws of the Republic of the Sudan or (ii) whose | 25 | | principal place of business is in the Republic of the | 26 | | Sudan; |
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| 1 | | (4) Any company (i) identified by the Office of Foreign | 2 | | Assets Control in the United States Department of the | 3 | | Treasury as sponsoring terrorist activities in the | 4 | | Republic of the Sudan; or (ii) fined, penalized, or | 5 | | sanctioned by the Office of Foreign Assets Control in the | 6 | | United States Department of the Treasury for any violation | 7 | | of any United States rules and restrictions relating to the | 8 | | Republic of the Sudan that occurred at any time following | 9 | | the effective date of this Act; | 10 | | (5) Any publicly traded company
that is individually | 11 | | identified by an independent researching firm that | 12 | | specializes in global security risk and that has been | 13 | | retained by a certifying company as provided in subsection | 14 | | (c) of this Section as being a company that owns or | 15 | | controls property or assets located in, has employees or | 16 | | facilities located in, provides goods or services to, | 17 | | obtains goods or services from, has distribution | 18 | | agreements with, issues credits or loans to, purchases | 19 | | bonds or commercial paper issued by, or invests in (A)
the | 20 | | Republic of the Sudan; or (B)
any company domiciled in the | 21 | | Republic of the Sudan; and | 22 | | (6) Any private market fund that fails to satisfy the | 23 | | requirements set forth in subsections (d) and (e) of this | 24 | | Section. | 25 | | Notwithstanding the foregoing, the term "forbidden entity" | 26 | | shall exclude (A) mutual funds that (i) are managed by an |
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| 1 | | investment company as defined and registered under the federal | 2 | | Investment Company Act of 1940 and registered under the | 3 | | Illinois Securities Law of 1953, (ii) have been in operation | 4 | | for at least 5 years, (iii) have total net assets of | 5 | | $250,000,000 or more, and (iv) are comprised of diversified | 6 | | portfolios of common or preferred stocks, bonds, or money | 7 | | market instruments; meet the requirements of item (iii) of | 8 | | paragraph (13) of Section 1-113.2 and (B) companies that | 9 | | transact business in the Republic of the Sudan under the law, | 10 | | license, or permit of the United States, including a license | 11 | | from the United States Department of the Treasury, and
| 12 | | companies, except agencies of the Republic of the Sudan, who | 13 | | are certified as Non-Government Organizations by the United | 14 | | Nations, or who engage solely in (i) the provision of goods and | 15 | | services intended to relieve human suffering or to promote | 16 | | welfare, health, religious and spiritual activities, and | 17 | | education or humanitarian purposes; or (ii) journalistic | 18 | | activities. | 19 | | "Private market fund" means any private equity fund, | 20 | | private equity fund of funds, venture capital fund, hedge fund, | 21 | | hedge fund of funds, real estate fund, or other investment | 22 | | vehicle that is not publicly traded.
| 23 | | "Republic of the Sudan" means those geographic areas of the | 24 | | Republic of Sudan that are subject to sanction or other | 25 | | restrictions placed on commercial activity imposed by the | 26 | | United States Government due to an executive or congressional |
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| 1 | | declaration of genocide.
| 2 | | "Retirement system" means the State Employees' Retirement | 3 | | System of Illinois, the Judges Retirement System of Illinois, | 4 | | the General Assembly Retirement System, the State Universities | 5 | | Retirement System, and the Teachers' Retirement System of the | 6 | | State of Illinois.
| 7 | | (c) A retirement system shall not transfer or disburse | 8 | | funds to, deposit into, acquire any bonds or commercial paper | 9 | | from, or otherwise loan to or invest in any entity unless, as | 10 | | provided in this Section, a certifying company
certifies to the | 11 | | retirement system that, (1) with respect to investments in a | 12 | | publicly traded company, the certifying company has relied on | 13 | | information provided by an independent researching firm that | 14 | | specializes in global security risk and (2) 100% of the | 15 | | retirement system's assets for which the certifying company | 16 | | provides services or advice are not and have not been invested | 17 | | or reinvested in any forbidden entity at any time after 4 | 18 | | months after the effective date of this Section. | 19 | | The certifying company shall make the certification | 20 | | required under this subsection (c) to a retirement system 6 | 21 | | months after the effective date of this Section and annually | 22 | | thereafter. A retirement system shall submit the | 23 | | certifications to the Department, and the Department shall | 24 | | notify the Secretary of Financial and Professional Regulation | 25 | | if a retirement system fails to do so. | 26 | | (d) With respect to a commitment or investment made |
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| 1 | | pursuant to a written agreement executed prior to the effective | 2 | | date of this Section, each private market fund shall submit to | 3 | | the appropriate certifying company, at no additional cost to | 4 | | the retirement system:
| 5 | | (1) an affidavit sworn under oath in which an expressly | 6 | | authorized officer of the private market fund avers that | 7 | | the private market fund (A) does not own or control any | 8 | | property or asset located in the Republic of the Sudan and | 9 | | (B) does not conduct business operations in the Republic of | 10 | | the Sudan; or | 11 | | (2) a certificate in which an expressly authorized | 12 | | officer of the private market fund certifies that the | 13 | | private market fund, based on reasonable due diligence, has | 14 | | determined that, other than direct or indirect investments | 15 | | in companies certified as Non-Government Organizations by | 16 | | the United Nations, the private market fund has no direct | 17 | | or indirect investment in any company (A) organized under | 18 | | the laws of the Republic of the Sudan; (B) whose principal | 19 | | place of business is in the Republic of the Sudan; or (C) | 20 | | that conducts business operations in the Republic of the | 21 | | Sudan. Such certificate shall be based upon the periodic | 22 | | reports received by the private market fund, and the | 23 | | private market fund shall agree that the certifying | 24 | | company, directly or through an agent, or the retirement | 25 | | system, as the case may be, may from time to time review | 26 | | the private market fund's certification process.
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| 1 | | (e) With respect to a commitment or investment made | 2 | | pursuant to a written agreement executed after the effective | 3 | | date of this Section, each private market fund shall, at no | 4 | | additional cost to the retirement system:
| 5 | | (1) submit to the appropriate certifying company an | 6 | | affidavit or certificate consistent with the requirements | 7 | | pursuant to subsection (d) of this Section; or | 8 | | (2) enter into an enforceable written agreement with | 9 | | the retirement system that provides for remedies | 10 | | consistent with those set forth in subsection (g) of this | 11 | | Section if any of the assets of the retirement system shall | 12 | | be transferred, loaned, or otherwise invested in any | 13 | | company that directly or indirectly (A) has facilities or | 14 | | employees in the Republic of the Sudan or (B) conducts | 15 | | business operations in the Republic of the Sudan.
| 16 | | (f) In addition to any other penalties and remedies | 17 | | available under the law of Illinois and the United States, any | 18 | | transaction, other than a transaction with a private market | 19 | | fund that is governed by subsections (g) and (h) of this | 20 | | Section, that violates the provisions of this Act shall be | 21 | | against public policy and voidable, at the sole discretion of | 22 | | the retirement system.
| 23 | | (g) If a private market fund fails to provide the affidavit | 24 | | or certification required in subsections (d) and (e) of this | 25 | | Section, then the retirement system shall, within 90 days, | 26 | | divest, or attempt in good faith to divest, the retirement |
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| 1 | | system's interest in the private market fund, provided that the | 2 | | Board of the retirement system confirms through resolution that | 3 | | the divestment does not have a material and adverse impact on | 4 | | the retirement system. The retirement system shall immediately | 5 | | notify the Department, and the Department shall notify all | 6 | | other retirement systems, as soon as practicable, by posting | 7 | | the name of the private market fund on the Department's | 8 | | Internet website or through e-mail communications. No other | 9 | | retirement system may enter into any agreement under which the | 10 | | retirement system directly or indirectly invests in the private | 11 | | market fund unless the private market fund provides that | 12 | | retirement system with the affidavit or certification required | 13 | | in subsections (d) and (e) of this Section and complies with | 14 | | all other provisions of this Section. | 15 | | (h) If a private market fund fails to fulfill its | 16 | | obligations under any agreement provided for in paragraph (2) | 17 | | of subsection (e) of this Section, the retirement system shall | 18 | | immediately take legal and other action to obtain satisfaction | 19 | | through all remedies and penalties available under the law and | 20 | | the agreement itself. The retirement system shall immediately | 21 | | notify the Department, and the Department shall notify all | 22 | | other retirement systems, as soon as practicable, by posting | 23 | | the name of the private market fund on the Department's | 24 | | Internet website or through e-mail communications, and no other | 25 | | retirement system may enter into any agreement under which the | 26 | | retirement system directly or indirectly invests in the private |
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| 1 | | market fund.
| 2 | | (i) This Section shall have full force and effect during | 3 | | any period in which the Republic of the Sudan, or the officials | 4 | | of the government of that Republic, are subject to sanctions | 5 | | authorized under any statute or executive order of the United | 6 | | States or until such time as the State Department of the United | 7 | | States confirms in the federal register or through other means | 8 | | that the Republic of the Sudan is no longer subject to | 9 | | sanctions by the government of the United States. | 10 | | (j) If any provision of this Section or its application to | 11 | | any person or circumstance is held invalid, the invalidity of | 12 | | that provision or application does not affect other provisions | 13 | | or applications of this Section that can be given effect | 14 | | without the invalid provision or application.
| 15 | | (Source: P.A. 95-521, eff. 8-28-07.)
| 16 | | (40 ILCS 5/1-113.1)
| 17 | | Sec. 1-113.1.
Investment authority of pension funds | 18 | | established under
Article 3 or 4. The board of trustees of a | 19 | | police pension fund established
under Article 3 of this Code or | 20 | | firefighter pension fund established under
Article 4 of this | 21 | | Code shall draw pension funds from the treasurer of the
| 22 | | municipality and, beginning January 1, 1998, invest any part | 23 | | thereof in the
name of the board in the items listed in | 24 | | Sections 1-113.2 through 1-113.4
according to the limitations | 25 | | and requirements of this Article. These
investments shall be |
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| 1 | | made with the care, skill, prudence, and diligence that a
| 2 | | prudent person acting in like capacity and familiar with such | 3 | | matters would use
in the conduct of an enterprise of like | 4 | | character with like aims.
| 5 | | Interest and any other income from the investments shall be | 6 | | credited to the
pension fund.
| 7 | | For the purposes of Sections 1-113.2 through 1-113.11, the | 8 | | "net assets" of a
pension fund include both the cash and | 9 | | invested assets of the pension fund.
| 10 | | (Source: P.A. 90-507, eff. 8-22-97.)
| 11 | | (40 ILCS 5/1-113.4a) | 12 | | Sec. 1-113.4a. Pension fund investments in common and | 13 | | preferred stocks and mutual funds List of additional permitted | 14 | | investments for Article 3 and 4 pension funds with net assets | 15 | | of $10,000,000 or more . | 16 | | (a) A In addition to the items in Sections 1-113.2 and | 17 | | 1-113.3, a pension fund established under Article 3 or 4 that | 18 | | has net assets of at least $10,000,000 and has appointed an | 19 | | investment adviser, as defined under Sections 1-101.4 and | 20 | | 1-113.5, may, through that investment adviser, invest an | 21 | | additional portion of its assets in common and preferred stocks | 22 | | and mutual funds. | 23 | | (b) The stocks must meet all of the following requirements: | 24 | | (1) The common stocks must be listed on a national | 25 | | securities exchange or board of trade (as defined in the |
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| 1 | | Federal Securities Exchange Act of 1934 and set forth in | 2 | | paragraph G of Section 3 of the Illinois Securities Law of | 3 | | 1953) or quoted in the National Association of Securities | 4 | | Dealers Automated Quotation System National Market System. | 5 | | (2) The securities must be of a corporation in | 6 | | existence for at least 5 years. | 7 | | (3) The market value of stock in any one corporation | 8 | | may not exceed 5% of the cash and invested assets of the | 9 | | pension fund, and the investments in the stock of any one | 10 | | corporation may not exceed 5% of the total outstanding | 11 | | stock of that corporation. | 12 | | (4) The straight preferred stocks or convertible | 13 | | preferred stocks must be issued or guaranteed by a | 14 | | corporation whose common stock qualifies for investment by | 15 | | the board. | 16 | | (c) The mutual funds must meet the following requirements: | 17 | | (1) The mutual fund must be managed by an investment | 18 | | company registered under the Federal Investment Company | 19 | | Act of 1940 and registered under the Illinois Securities | 20 | | Law of 1953. | 21 | | (2) The mutual fund must have been in operation for at | 22 | | least 5 years. | 23 | | (3) The mutual fund must have total net assets of | 24 | | $250,000,000 or more. | 25 | | (4) The mutual fund must be comprised of a diversified | 26 | | portfolio of common or preferred stocks, bonds, or money |
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| 1 | | market instruments. | 2 | | (d) (Blank). A pension fund's total investment in the items | 3 | | authorized under this Section and Section 1-113.3 shall not | 4 | | exceed 50% effective July 1, 2011 and 55% effective July 1, | 5 | | 2012 of the market value of the pension fund's net present | 6 | | assets stated in its most recent annual report on file with the | 7 | | Department of Insurance. | 8 | | (e) A pension fund that invests funds under this Section | 9 | | shall electronically file with the Division any reports of its | 10 | | investment activities that the Division may require, at the | 11 | | time and in the format required by the Division.
| 12 | | (Source: P.A. 96-1495, eff. 1-1-11.)
| 13 | | (40 ILCS 5/1-113.5)
| 14 | | Sec. 1-113.5. Investment advisers and investment services | 15 | | for all Article 3 or 4 pension funds.
| 16 | | (a) The board of trustees of a pension fund may appoint | 17 | | investment advisers
as defined in Section 1-101.4. The board of | 18 | | any pension fund investing in
common or preferred stock under | 19 | | Section 1-113.4 shall appoint an investment
adviser before | 20 | | making such investments.
| 21 | | The investment adviser shall be a fiduciary, as defined in | 22 | | Section 1-101.2,
with respect to the pension fund and shall be | 23 | | one of the following:
| 24 | | (1) an investment adviser registered under the federal | 25 | | Investment Advisers
Act of 1940 and the Illinois Securities |
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| 1 | | Law of 1953;
| 2 | | (2) a bank or trust company authorized to conduct a | 3 | | trust business in
Illinois;
| 4 | | (3) a life insurance company authorized to transact | 5 | | business in Illinois;
or
| 6 | | (4) an investment company as defined and registered | 7 | | under the federal
Investment Company Act of 1940 and | 8 | | registered under the Illinois Securities Law
of 1953.
| 9 | | (a-5) Notwithstanding any other provision of law, a person | 10 | | or entity that provides consulting services (referred to as a | 11 | | "consultant" in this Section) to a pension fund with respect to | 12 | | the selection of fiduciaries may not be awarded a contract to | 13 | | provide those consulting services that is more than 5 years in | 14 | | duration. No contract to provide such consulting services may | 15 | | be renewed or extended. At the end of the term of a contract, | 16 | | however, the contractor is eligible to compete for a new | 17 | | contract. No person shall attempt to avoid or contravene the | 18 | | restrictions of this subsection by any means. All offers from | 19 | | responsive offerors shall be accompanied by disclosure of the | 20 | | names and addresses of the following: | 21 | | (1) The offeror. | 22 | | (2) Any entity that is a parent of, or owns a | 23 | | controlling interest in, the offeror. | 24 | | (3) Any entity that is a subsidiary of, or in which a | 25 | | controlling interest is owned by, the offeror. | 26 | | Beginning on July 1, 2008, a person, other than a trustee |
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| 1 | | or an employee of a pension fund or retirement system, may not | 2 | | act as a consultant under this Section unless that person is at | 3 | | least one of the following: (i) registered as an investment | 4 | | adviser under the federal Investment Advisers Act of 1940 (15 | 5 | | U.S.C. 80b-1, et seq.); (ii) registered as an investment | 6 | | adviser under the Illinois Securities Law of 1953; (iii) a | 7 | | bank, as defined in the Investment Advisers Act of 1940; or | 8 | | (iv) an insurance company authorized to transact business in | 9 | | this State. | 10 | | (b) All investment advice and services provided by an | 11 | | investment adviser
or a consultant appointed under this Section | 12 | | shall be rendered pursuant to a written contract
between the | 13 | | investment adviser and the board, and in accordance with the
| 14 | | board's investment policy.
| 15 | | The contract shall include all of the following:
| 16 | | (1) acknowledgement in writing by the investment | 17 | | adviser that he or she
is a fiduciary with respect to the | 18 | | pension fund;
| 19 | | (2) the board's investment policy;
| 20 | | (3) full disclosure of direct and indirect fees, | 21 | | commissions, penalties,
and any other compensation that | 22 | | may be received by the investment adviser,
including | 23 | | reimbursement for expenses; and
| 24 | | (4) a requirement that the investment adviser submit | 25 | | periodic written
reports, on at least a quarterly basis, | 26 | | for the board's review at its regularly
scheduled meetings. |
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| 1 | | All returns on investment shall be reported as net returns
| 2 | | after payment of all fees, commissions, and any other | 3 | | compensation.
| 4 | | (b-5) Each contract described in subsection (b) shall also | 5 | | include (i) full disclosure of direct and indirect fees, | 6 | | commissions, penalties, and other compensation, including
| 7 | | reimbursement for expenses, that may be paid by or on behalf of | 8 | | the investment adviser or consultant in connection with the | 9 | | provision of services to the pension fund and (ii) a | 10 | | requirement that the investment adviser or consultant update | 11 | | the disclosure promptly after a modification of those payments | 12 | | or an additional payment. | 13 | | Within 30 days after the effective date of this amendatory | 14 | | Act of the 95th General Assembly, each investment adviser and | 15 | | consultant providing services on the effective date or subject | 16 | | to an existing contract for the provision of services must | 17 | | disclose to the board of trustees all direct and indirect fees, | 18 | | commissions, penalties, and other compensation paid by or on
| 19 | | behalf of the investment adviser or consultant in connection | 20 | | with the provision of those services and shall update that | 21 | | disclosure promptly after a modification of those payments or | 22 | | an additional payment. | 23 | | A person required to make a disclosure under subsection (d) | 24 | | is also required to disclose direct and indirect fees, | 25 | | commissions, penalties, or other compensation that shall or may | 26 | | be paid by or on behalf of the person in connection with the |
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| 1 | | rendering of those services. The person shall update the | 2 | | disclosure promptly after a modification of those payments or | 3 | | an additional payment. | 4 | | The disclosures required by this subsection shall be in | 5 | | writing and shall include the date and amount of each payment | 6 | | and the name and address of each recipient of a payment. | 7 | | (c) Within 30 days after appointing an investment adviser | 8 | | or consultant, the board shall
submit a copy of the contract to | 9 | | the Division of Insurance of the Department of Financial and | 10 | | Professional Regulation.
| 11 | | (d) Investment services provided by a person other than an | 12 | | investment
adviser appointed under this Section, including but | 13 | | not limited to services
provided by the kinds of persons listed | 14 | | in items (1) through (4) of subsection
(a), shall be rendered | 15 | | only after full written disclosure of direct and
indirect fees, | 16 | | commissions, penalties, and any other compensation that shall | 17 | | or
may be received by the person rendering those services.
| 18 | | (e) The board of trustees of each pension fund shall retain | 19 | | records of
investment transactions in accordance with the rules | 20 | | of the Department of
Financial and Professional Regulation.
| 21 | | (Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.)
| 22 | | (40 ILCS 5/1-113.14)
| 23 | | Sec. 1-113.14. Investment services for retirement systems, | 24 | | pension funds, and investment boards, except those funds | 25 | | established under Articles 3 and 4. |
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| 1 | | (a) For the purposes of this Section, "investment services" | 2 | | means services provided by an investment adviser or a | 3 | | consultant other than qualified fund-of-fund management | 4 | | services as defined in Section 1-113.15. | 5 | | (b) The selection and appointment of an investment adviser | 6 | | or consultant for investment services by the board of a | 7 | | retirement system, pension fund, or investment board subject to | 8 | | this Code, except those under Article 3 or 4 whose investments | 9 | | are restricted by Section 1-113.2 , shall be made and awarded in | 10 | | accordance with this Section. All contracts for investment | 11 | | services shall be awarded by the board using a competitive | 12 | | process that is substantially similar to the process required | 13 | | for the procurement of professional and artistic services under | 14 | | Article 35 of the Illinois Procurement Code. Each board of | 15 | | trustees shall adopt a policy in accordance with this | 16 | | subsection (b) within 60 days after the effective date of this | 17 | | amendatory Act of the 96th General Assembly. The policy shall | 18 | | be posted on its web site and filed with the Illinois | 19 | | Procurement Policy Board. Exceptions to this Section are | 20 | | allowed for (i) sole source procurements, (ii) emergency | 21 | | procurements, (iii) at the discretion of the pension fund, | 22 | | retirement system, or board of investment, contracts that are | 23 | | nonrenewable and one year or less in duration, so long as the | 24 | | contract has a value of less than $20,000, and (iv) in the | 25 | | discretion of the pension fund, retirement system, or | 26 | | investment board, contracts for follow-on funds with the same |
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| 1 | | fund sponsor through closed-end funds.
All exceptions granted | 2 | | under this Section must be published on the system's, fund's, | 3 | | or board's web site, shall name the person authorizing the | 4 | | procurement, and shall include a brief explanation of the | 5 | | reason for the exception. | 6 | | A person, other than a trustee or an employee of a | 7 | | retirement system, pension fund, or investment board, may not | 8 | | act as a consultant or investment adviser under this Section | 9 | | unless that person is registered as an investment adviser under | 10 | | the federal Investment Advisers Act of 1940 (15 U.S.C. 80b-1, | 11 | | et seq.) or a bank, as defined in the federal Investment | 12 | | Advisers Act of 1940 (15 U.S.C. 80b-1, et seq.). | 13 | | (c) Investment services provided by an investment adviser | 14 | | or a consultant appointed under this Section shall be rendered | 15 | | pursuant to a written contract between the investment adviser | 16 | | or consultant and the board. | 17 | | The contract shall include all of the following: | 18 | | (1) Acknowledgement in writing by the investment | 19 | | adviser or consultant that he or she is a fiduciary with | 20 | | respect to the pension fund or retirement system. | 21 | | (2) The description of the board's investment policy | 22 | | and notice that the policy is subject to change. | 23 | | (3) (i) Full disclosure of direct and indirect fees, | 24 | | commissions, penalties, and other compensation, including | 25 | | reimbursement for expenses, that may be paid by or on | 26 | | behalf of the consultant in connection with the provision |
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| 1 | | of services to the pension fund or retirement system and | 2 | | (ii) a requirement that the consultant update the | 3 | | disclosure promptly after a modification of those payments | 4 | | or an additional payment. | 5 | | (4) A requirement that the investment adviser or | 6 | | consultant, in conjunction with the board's staff, submit | 7 | | periodic written reports, on at least a quarterly basis, | 8 | | for the board's review at its regularly scheduled meetings. | 9 | | All returns on investment shall be reported as net returns | 10 | | after payment of all fees, commissions, and any other | 11 | | compensation. | 12 | | (5) Disclosure of the names and addresses of (i) the | 13 | | consultant or investment adviser; (ii) any entity that is a | 14 | | parent of, or owns a controlling interest in, the | 15 | | consultant or investment adviser; (iii) any entity that is | 16 | | a subsidiary of, or in which a controlling interest is | 17 | | owned by, the consultant or investment adviser; (iv) any | 18 | | persons who have an ownership or distributive income share | 19 | | in the consultant or investment adviser that is in excess | 20 | | of 7.5%; or (v) serves as an executive officer of the | 21 | | consultant or investment adviser. | 22 | | (6) A disclosure of the names and addresses of all | 23 | | subcontractors, if applicable, and the expected amount of | 24 | | money each will receive under the contract, including an | 25 | | acknowledgment that the contractor must promptly make | 26 | | notification, in writing, if at any time during the term of |
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| 1 | | the contract a contractor adds or changes any | 2 | | subcontractors. For purposes of this subparagraph (6), | 3 | | "subcontractor" does not include non-investment related | 4 | | professionals or professionals offering services that are | 5 | | not directly related to the investment of assets, such as | 6 | | legal counsel, actuary, proxy-voting services, services | 7 | | used to track compliance with legal standards, and | 8 | | investment fund of funds where the board has no direct | 9 | | contractual relationship with the investment advisers or | 10 | | partnerships. | 11 | | (7) A description of service to be performed. | 12 | | (8) A description of the need for the service. | 13 | | (9) A description of the plan for post-performance | 14 | | review. | 15 | | (10) A description of the qualifications necessary. | 16 | | (11) The duration of the contract. | 17 | | (12) The method for charging and measuring cost. | 18 | | (d) Notwithstanding any other provision of law, a | 19 | | retirement system, pension fund, or investment board subject to | 20 | | this Code, except those under Article 3 or 4 whose investments | 21 | | are restricted by Section 1-113.2 of this Code, shall not enter | 22 | | into a contract with a consultant that exceeds 5 years in | 23 | | duration. No contract to provide consulting services may be | 24 | | renewed or extended. At the end of the term of a contract, | 25 | | however, the consultant is eligible to compete for a new | 26 | | contract as provided in this Section. No retirement system, |
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| 1 | | pension fund, or investment board shall attempt to avoid or | 2 | | contravene the restrictions of this subsection (d) by any | 3 | | means. | 4 | | (e) Within 60 days after the effective date of this | 5 | | amendatory Act of the 96th General Assembly, each investment | 6 | | adviser or consultant currently providing services or subject | 7 | | to an existing contract for the provision of services must | 8 | | disclose to the board of trustees all direct and indirect fees, | 9 | | commissions, penalties, and other compensation paid by or on | 10 | | behalf of the investment adviser or consultant in connection | 11 | | with the provision of those services and shall update that | 12 | | disclosure promptly after a modification of those payments or | 13 | | an additional payment. The person shall update the disclosure | 14 | | promptly after a modification of those payments or an | 15 | | additional payment. The disclosures required by this | 16 | | subsection (e) shall be in writing and shall include the date | 17 | | and amount of each payment and the name and address of each | 18 | | recipient of a payment. | 19 | | (f) The retirement system, pension fund, or board of | 20 | | investment shall develop uniform documents that shall be used | 21 | | for the solicitation, review, and acceptance of all investment | 22 | | services. The form shall include the terms contained in | 23 | | subsection (c) of this Section. All such uniform documents | 24 | | shall be posted on the retirement system's, pension fund's, or | 25 | | investment board's web site. | 26 | | (g) A description of every contract for investment services |
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| 1 | | shall be posted in a conspicuous manner on the web site of the | 2 | | retirement system, pension fund, or investment board. The | 3 | | description must include the name of the person or entity | 4 | | awarded a contract, the total amount applicable to the | 5 | | contract, the total fees paid or to be paid, and a disclosure | 6 | | approved by the board describing the factors that contributed | 7 | | to the selection of an investment adviser or consultant.
| 8 | | (Source: P.A. 98-433, eff. 8-16-13.) | 9 | | (40 ILCS 5/1-113.16)
| 10 | | Sec. 1-113.16. Investment transparency. | 11 | | (a) The purpose of this Section is to provide for | 12 | | transparency in the investment of retirement or pension funds | 13 | | and require the reporting of full and complete information | 14 | | regarding the investments by pension funds, retirement | 15 | | systems, and investment boards. | 16 | | (b) A retirement system, pension fund, or investment board | 17 | | subject to this Code and any committees established by such | 18 | | system, fund, or board must comply with the Open Meetings Act. | 19 | | (c) Any retirement system, pension fund, or investment | 20 | | board subject to this Code that establishes a committee shall | 21 | | ensure that the majority of the members on such committee are | 22 | | board members. If any member of a committee is not a member of | 23 | | the board for the system, fund, or board, then that committee | 24 | | member shall be a fiduciary. | 25 | | (d) A retirement system, pension fund, or investment board |
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| 1 | | subject to this Code, except those under Article 3 or 4 whose | 2 | | investments are restricted by Section 1-113.2 , shall maintain | 3 | | an official web site and make available in a clear and | 4 | | conspicuous manner, and update at least quarterly, all of the | 5 | | following information concerning the investment of funds: | 6 | | (1) The total amount of funds held by the pension fund, | 7 | | retirement system, or investment board. | 8 | | (2) The asset allocation for the investments made by | 9 | | the pension fund, retirement system, or investment board. | 10 | | (3) Current and historic return information. | 11 | | (4) A detailed listing of the investment advisers for | 12 | | all asset classes. | 13 | | (5) Performance of investments compared against | 14 | | established benchmarks. | 15 | | (6) A detailed list of all consultants doing business | 16 | | with the retirement system, pension fund, or investment | 17 | | board. | 18 | | (7) A detailed list of all contractors, other than | 19 | | investment advisers and consultants, doing business with | 20 | | the retirement system, pension fund, or investment board. | 21 | | (8) Any requests for investment services. | 22 | | (9) The names and email addresses of all board members, | 23 | | directors, and senior staff. | 24 | | (10) The report required under Section 1-109.1 of this | 25 | | Code, if applicable. | 26 | | (11) The description of each contract required under |
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| 1 | | subsection (g) of Section 1-113.14 of this Code, if | 2 | | applicable. | 3 | | (e) A pension fund under Article 3 or 4 whose investments | 4 | | are restricted by Section 1-113.2 of this Code shall make the | 5 | | information required in subsection (d) of this Section | 6 | | available on its web site or in a location that allows the | 7 | | information to be available for inspection by the public. | 8 | | (f) Nothing in this Section requires the pension fund, | 9 | | retirement system, or investment board to make information | 10 | | available on the Internet that is exempt from inspection and | 11 | | copying under the Freedom of Information Act.
| 12 | | (Source: P.A. 96-6, eff. 4-3-09.) | 13 | | (40 ILCS 5/1-113.20) | 14 | | Sec. 1-113.20. Investment strategies; explicit and | 15 | | implicit costs. Every pension fund, retirement system, and | 16 | | investment board created under this Code, except those under | 17 | | Article 3 or 4 whose investments are restricted by Section | 18 | | 1-113.2 of this Code, shall instruct the fund's, system's, or | 19 | | board's investment advisors to utilize investment strategies | 20 | | designed to ensure that all securities transactions are | 21 | | executed in such a manner that the total explicit and implicit | 22 | | costs and total proceeds in every transaction are the most | 23 | | favorable under the circumstances.
| 24 | | (Source: P.A. 96-753, eff. 8-25-09.) |
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| 1 | | (40 ILCS 5/1-150)
| 2 | | Sec. 1-150. Approval of travel or educational mission. The | 3 | | expenses for travel or educational missions of a board member | 4 | | of a retirement system, pension fund, or investment board | 5 | | created under this Code, except those under Article 3 or 4 | 6 | | whose investments are restricted by Section 1-113.2 of this | 7 | | Code, must be approved by a majority of the board prior to the | 8 | | travel or educational mission.
| 9 | | (Source: P.A. 96-6, eff. 4-3-09.)
| 10 | | (40 ILCS 5/1-113.2 rep.)
| 11 | | (40 ILCS 5/1-113.3 rep.)
| 12 | | (40 ILCS 5/1-113.4 rep.) | 13 | | Section 10. The Illinois Pension Code is amended by | 14 | | repealing Sections 1-113.2, 1-113.3, and 1-113.4.
| 15 | | Section 99. Effective date. This Act takes effect upon | 16 | | becoming law.
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