Bill Text: IL HB5328 | 2009-2010 | 96th General Assembly | Introduced

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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-02-05 - Referred to Rules Committee [HB5328 Detail]

Download: Illinois-2009-HB5328-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB5328 Introduced 2/5/2010, by Rep. Michael G. Connelly 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.
LRB096 17406 AMC 32759 b
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 1-110 as follows:
(40 ILCS 5/1-110) (from Ch. 108 1/2, par. 1-110)
Sec. 1-110. Prohibited Transactions.
(a) A fiduciary with respect to a retirement system,
pension fund, or investment board shall not cause the the
retirement system or pension fund to engage in a transaction if
he or she knows or should know that such transaction
constitutes a direct or indirect:
(1) Sale or exchange, or leasing of any property from
the retirement system or pension fund to a party in
interest for less than adequate consideration, or from a
party in interest to a retirement system or pension fund
for more than adequate consideration.
(2) Lending of money or other extension of credit from
the retirement system or pension fund to a party in
interest without the receipt of adequate security and a
reasonable rate of interest, or from a party in interest to
a retirement system or pension fund with the provision of
excessive security or an unreasonably high rate of

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

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pension fund.
(2) Receiving any reimbursement of expenses properly
and actually incurred in the performance of his duties with
the retirement system or pension fund.
(3) Serving as a trustee in addition to being an
officer, employee, agent or other representative of a party
in interest.
(d) A fiduciary of a pension fund established under Article
3 or 4 shall not knowingly cause or advise the pension fund to
engage in an investment transaction when the fiduciary (i) has
any direct interest in the income, gains, or profits of the
investment adviser through which the investment transaction is
made or (ii) has a business relationship with that investment
adviser that would result in a pecuniary benefit to the
fiduciary as a result of the investment transaction.
Violation of this subsection (d) is a Class 4 felony.
(e) A board member, employee, or consultant with respect to
a retirement system, pension fund, or investment board subject
to this Code, except those whose investments are restricted by
Section 1-113.2, shall not knowingly cause or advise the
retirement system, pension fund, or investment board to engage
in an investment transaction with an investment adviser when
the board member, employee, consultant, or their spouse (i) has
any direct interest in the income, gains, or profits of the
investment adviser through which the investment transaction is
made or (ii) has a relationship with that investment adviser

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that would result in a pecuniary benefit to the board member,
employee, or consultant or spouse of such board member,
employee, or consultant as a result of the investment
transaction. For purposes of this subsection (e), a consultant
includes an employee or agent of a consulting firm who has
greater than 7.5% ownership of the consulting firm.
Violation of this subsection (e) is a Class 4 felony.
(Source: P.A. 95-950, eff. 8-29-08; 96-6, eff. 4-3-09.)