Bill Text: IL HB0829 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Illinois Pension Code. In provisions concerning permitted investments for pension funds with net assets of $5,000,000 or more, (i) increases the amount of net assets that the pension fund must have for the provisions to apply from $5,000,000 or more to $10,000,000 or more, (ii) removes provisions requiring that securities are of a corporation created or existing under the laws of the United States or any state, district, or territory thereof and that the issuer of the stocks has been subject to the requirements of Section 12 of the federal Securities Exchange Act of 1934 and has been current with the filing requirements of specified Sections of that Act during the preceding 3 years, and (iii) increases the maximum percentage of the market value of the pension fund's net present assets in certain investments. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced - Dead) 2009-03-13 - Rule 19(a) / Re-referred to Rules Committee [HB0829 Detail]

Download: Illinois-2009-HB0829-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB0829 Introduced 2/9/2009, by Rep. Karen May SYNOPSIS AS INTRODUCED:
40 ILCS 5/1-113.4
Amends the Illinois Pension Code. In provisions concerning permitted investments for pension funds with net assets of $5,000,000 or more, (i) increases the amount of net assets that the pension fund must have for the provisions to apply from $5,000,000 or more to $10,000,000 or more, (ii) removes provisions requiring that securities are of a corporation created or existing under the laws of the United States or any state, district, or territory thereof and that the issuer of the stocks has been subject to the requirements of Section 12 of the federal Securities Exchange Act of 1934 and has been current with the filing requirements of specified Sections of that Act during the preceding 3 years, and (iii) increases the maximum percentage of the market value of the pension fund's net present assets in certain investments. Effective immediately.
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PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by changing
Section 1-113.4 as follows:
(40 ILCS 5/1-113.4)
Sec. 1-113.4. List of additional permitted investments for
pension funds with net assets of $10,000,000 $5,000,000 or
more.
(a) In addition to the items in Sections 1-113.2 and
1-113.3, a pension fund established under Article 3 or 4 that
has net assets of at least $10,000,000 $5,000,000 and has
appointed an investment adviser under Section 1-113.5 may,
through that investment adviser, invest a portion of its assets
in common and preferred stocks authorized for investments of
trust funds under the laws of the State of Illinois. The stocks
must meet all of the following requirements:
(1) The common stocks are listed on a national
securities exchange or board of trade (as defined in the
federal Securities Exchange Act of 1934 and set forth in
Section 3.G of the Illinois Securities Law of 1953) or
quoted in the National Association of Securities Dealers
Automated Quotation System National Market System (NASDAQ

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NMS).
(2) The securities are of a corporation created or
existing under the laws of the United States or any state,
district, or territory thereof and the corporation has been
in existence for at least 5 years.
(3) The corporation has not been in arrears on payment
of dividends on its preferred stock during the preceding 5
years.
(4) The market value of stock in any one corporation
does not exceed 5% of the cash and invested assets of the
pension fund, and the investments in the stock of any one
corporation do not exceed 5% of the total outstanding stock
of that corporation.
(5) The straight preferred stocks or convertible
preferred stocks are issued or guaranteed by a corporation
whose common stock qualifies for investment by the board.
(6) The issuer of the stocks has been subject to the
requirements of Section 12 of the federal Securities
Exchange Act of 1934 and has been current with the filing
requirements of Sections 13 and 14 of that Act during the
preceding 3 years.
(b) A pension fund's total investment in the items
authorized under this Section and Section 1-113.3 shall not
exceed 40% effective July 1, 2009; 45% effective July 1, 2010;
and 50% effective July 1, 2011 35% of the market value of the
pension fund's net present assets stated in its most recent

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annual report on file with the Division of Insurance within the
Department of Financial and Professional Regulation Illinois
Department of Insurance.
(c) A pension fund that invests funds under this Section
shall electronically file with the Division any reports of its
investment activities that the Division may require, at the
times and in the format required by the Division.
(Source: P.A. 90-507, eff. 8-22-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.