|
|
|
|
SB1292 Engrossed |
|
LRB096 08007 AMC 19275 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 1-109.1 as follows:
|
| 6 |
| (40 ILCS 5/1-109.1) (from Ch. 108 1/2, par. 1-109.1)
|
| 7 |
| Sec. 1-109.1. Allocation and Delegation of Fiduciary |
| 8 |
| Duties.
|
| 9 |
| (1) Subject to the provisions of Section 22A-113 of this |
| 10 |
| Code and
subsections (2) and (3) of this Section, the board of |
| 11 |
| trustees of a
retirement system or pension fund established |
| 12 |
| under this Code may:
|
| 13 |
| (a) Appoint one or more investment managers as |
| 14 |
| fiduciaries to manage
(including the power to acquire and |
| 15 |
| dispose of) any assets of the
retirement system or pension |
| 16 |
| fund; and
|
| 17 |
| (b) Allocate duties among themselves and designate |
| 18 |
| others as fiduciaries
to carry out specific fiduciary |
| 19 |
| activities other than the management of the
assets of the |
| 20 |
| retirement system or pension fund.
|
| 21 |
| (2) The board of trustees of a pension fund established |
| 22 |
| under Article 5, 6,
8, 9, 10, 11, 12 or 17 of this Code may not |
| 23 |
| transfer its investment authority,
nor transfer the assets of |
|
|
|
SB1292 Engrossed |
- 2 - |
LRB096 08007 AMC 19275 b |
|
|
|
| 1 |
| the fund to any other person or entity for the
purpose of |
| 2 |
| consolidating or merging its assets and management with any |
| 3 |
| other
pension fund or public investment authority, unless the |
| 4 |
| board resolution
authorizing such transfer is submitted for |
| 5 |
| approval to the contributors and
pensioners of the fund at |
| 6 |
| elections held not less than 30 days after the
adoption of such |
| 7 |
| resolution by the board, and such resolution is approved by a
|
| 8 |
| majority of the votes cast on the question in both the |
| 9 |
| contributors election
and the pensioners election. The |
| 10 |
| election procedures and qualifications
governing the election |
| 11 |
| of trustees shall govern the submission of resolutions
for |
| 12 |
| approval under this paragraph, insofar as they may be made |
| 13 |
| applicable.
|
| 14 |
| (3) Pursuant to subsections (h) and (i) of Section 6 of |
| 15 |
| Article VII of
the Illinois Constitution, the investment |
| 16 |
| authority of boards of trustees
of retirement systems and |
| 17 |
| pension funds established under this Code is declared
to be a |
| 18 |
| subject of exclusive State jurisdiction, and the concurrent |
| 19 |
| exercise
by a home rule unit of any power affecting such |
| 20 |
| investment authority is
hereby specifically denied and |
| 21 |
| preempted.
|
| 22 |
| (4) For the purposes of this Code, "emerging investment |
| 23 |
| manager" means a
qualified investment adviser that manages an |
| 24 |
| investment portfolio of at
least $10,000,000 but less than |
| 25 |
| $2,000,000,000 and is a
"minority owned business" or "female |
| 26 |
| owned business" as those terms are
defined in the Business |
|
|
|
SB1292 Engrossed |
- 3 - |
LRB096 08007 AMC 19275 b |
|
|
|
| 1 |
| Enterprise for Minorities,
Females, and Persons with |
| 2 |
| Disabilities Act.
|
| 3 |
| It is hereby declared to be the public policy of the State |
| 4 |
| of Illinois to
encourage the trustees of public employee |
| 5 |
| retirement systems
to use emerging investment managers in |
| 6 |
| managing their system's assets encompassing all asset classes |
| 7 |
| and brokerage to the
greatest extent feasible within the bounds |
| 8 |
| of financial and fiduciary
prudence, and to take affirmative |
| 9 |
| steps to remove any barriers to the full
participation of |
| 10 |
| emerging investment managers in investment opportunities
|
| 11 |
| afforded by those retirement systems.
|
| 12 |
| Each retirement system subject to this Code shall prepare a
|
| 13 |
| report to be submitted to the Governor and the General Assembly |
| 14 |
| by
September 1 of each year. The report shall identify the |
| 15 |
| emerging
investment managers used by the system, the percentage |
| 16 |
| of the system's
assets under the investment control of emerging |
| 17 |
| investment managers, and
the actions it has undertaken to |
| 18 |
| increase the use of emerging investment
managers, including |
| 19 |
| encouraging other investment managers to use emerging
|
| 20 |
| investment managers as subcontractors when the opportunity |
| 21 |
| arises.
|
| 22 |
| The use of an emerging investment manager does not |
| 23 |
| constitute a transfer
of investment authority for the purposes |
| 24 |
| of subsection (2) of this Section.
|
| 25 |
| (5) Each retirement system subject to this Code shall |
| 26 |
| establish a policy with the goal of increasing the racial, |