|
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB0441 Introduced 1/28/2015, by Sen. John J. Cullerton 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.
| |
| | |
| | | PENSION IMPACT NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
|
| | SB0441 | | LRB099 03088 RPS 23096 b |
|
|
| 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 | | 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, |
| 9 | | pension fund, or investment board shall
not cause the
the |
| 10 | | retirement system or pension fund to engage in a transaction if
|
| 11 | | he or she knows or should know that such transaction |
| 12 | | constitutes a direct or
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 |
|
| | SB0441 | - 2 - | LRB099 03088 RPS 23096 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 |
|
| | SB0441 | - 3 - | LRB099 03088 RPS 23096 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 | | (d) A fiduciary of a pension fund established under Article |
| 9 | | 3 or 4 shall
not knowingly cause or advise the pension fund to |
| 10 | | engage in an investment transaction when the fiduciary (i) has |
| 11 | | any direct interest in
the income, gains, or profits of the |
| 12 | | investment adviser through which the investment transaction is |
| 13 | | made or (ii) has a business relationship with that investment |
| 14 | | adviser that would result in a pecuniary benefit to the |
| 15 | | fiduciary as a result of the investment transaction. |
| 16 | | Violation of this subsection (d) is a Class 4 felony.
|
| 17 | | (e) A board member, employee, or consultant with respect to |
| 18 | | a retirement system, pension fund, or investment board subject |
| 19 | | to this Code, except those whose investments are restricted by |
| 20 | | Section 1-113.2, shall not knowingly cause or advise the |
| 21 | | retirement system, pension fund, or investment board to engage |
| 22 | | in an investment transaction with an investment adviser when |
| 23 | | the board member, employee, consultant, or their spouse (i) has |
| 24 | | any direct interest in the income, gains, or profits of the |
| 25 | | investment adviser through which the investment transaction is |
| 26 | | made or (ii) has a relationship with that investment adviser |
|
| | SB0441 | - 4 - | LRB099 03088 RPS 23096 b |
|
|
|
| 1 | | that would result in a pecuniary benefit to the board member, |
| 2 | | employee, or consultant or spouse of such board member, |
| 3 | | employee, or consultant as a result of the investment |
| 4 | | transaction. For purposes of this subsection (e), a consultant |
| 5 | | includes an employee or agent of a consulting firm who has |
| 6 | | greater than 7.5% ownership of the consulting firm. |
| 7 | | Violation of this subsection (e) is a Class 4 felony. |
| 8 | | (Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.)
|