Bill Text: IL SB2102 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Illinois Pension Code. In the Regulation of Public Pension Funds Article, provides that the Consolidated Fund (instead of the Public Pension Division of the Department of Insurance or the Consolidated Fund, as appropriate) shall examine or investigate each pension fund established under the Downstate Police or Downstate Firefighter Article of the Code. In the Chicago Police and Chicago Firefighter Articles, repeals provisions requiring the Director of Insurance to biennially make a thorough examination of the Fund and issue a report. Effective July 1, 2023.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Engrossed) 2023-04-28 - Rule 19(a) / Re-referred to Rules Committee [SB2102 Detail]

Download: Illinois-2023-SB2102-Engrossed.html

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SB2102 Engrossed LRB103 26034 RPS 52389 b
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 1A-104 as follows:
(40 ILCS 5/1A-104)
Sec. 1A-104. Examinations and investigations.
(a) Except as described in this Section the following
paragraph with respect to pension funds established under
Article 3 or 4 of this Code, the Division shall make periodic
examinations and investigations of all pension funds
established under this Code and maintained for the benefit of
employees and officers of governmental units in the State of
Illinois. However, in lieu of making an examination and
investigation, the Division may accept and rely upon a report
of audit or examination of any pension fund made by an
independent certified public accountant pursuant to the
provisions of the Article of this Code governing the pension
fund. The acceptance of the report of audit or examination
does not bar the Division from making a further audit,
examination, and investigation if deemed necessary by the
Division.
For pension funds established under Article 3 or 4 of this

SB2102 Engrossed - 2 - LRB103 26034 RPS 52389 b
Code: (i) prior to the conclusion of the transition period,
the Division shall make the periodic examinations and
investigations described in the preceding paragraph; and (ii)
after the conclusion of the transition period, the Division
may accept and rely upon a report of audit or examination of
such pension fund made by an independent certified public
accountant retained by the Consolidated Fund. The acceptance
of the report of audit or examination does not bar the Division
from making a further audit, examination, and investigation if
deemed necessary by the Division.
The Department may implement a flexible system of
examinations under which it directs resources as it deems
necessary or appropriate. In consultation with the pension
fund being examined, the Division may retain attorneys,
independent actuaries, independent certified public
accountants, and other professionals and specialists as
examiners, the cost of which (except in the case of pension
funds established under Article 3 or 4) shall be borne by the
pension fund that is the subject of the examination.
(b) The Division or the Consolidated Fund, as appropriate,
shall examine or investigate each pension fund established
under Article 3 or Article 4 of this Code. The schedule of each
examination shall be such that each fund shall be examined
once every 3 years.
Each examination shall include the following:
(1) an audit of financial transactions, investment

SB2102 Engrossed - 3 - LRB103 26034 RPS 52389 b
policies, and procedures;
(2) an examination of books, records, documents,
files, and other pertinent memoranda relating to
financial, statistical, and administrative operations;
(3) a review of policies and procedures maintained for
the administration and operation of the pension fund;
(4) a determination of whether or not full effect is
being given to the statutory provisions governing the
operation of the pension fund;
(5) a determination of whether or not the
administrative policies in force are in accord with the
purposes of the statutory provisions and effectively
protect and preserve the rights and equities of the
participants;
(6) a determination of whether or not proper financial
and statistical records have been established and adequate
documentary evidence is recorded and maintained in support
of the several types of annuity and benefit payments being
made; and
(7) a determination of whether or not the calculations
made by the fund for the payment of all annuities and
benefits are accurate.
In addition, the Division or the Consolidated Fund, as
appropriate, may conduct investigations, which shall be
identified as such and which may include one or more of the
items listed in this subsection.

SB2102 Engrossed - 4 - LRB103 26034 RPS 52389 b
A copy of the report of examination or investigation as
prepared by the Division or the Consolidated Fund, as
appropriate, shall be submitted to the secretary of the board
of trustees of the pension fund examined or investigated and
to the chief executive officer of the municipality. The
Director, upon request, shall grant a hearing to the officers
or trustees of the pension fund and to the officers or trustees
of the Consolidated Fund, as appropriate, or their duly
appointed representatives, upon any facts contained in the
report of examination. The hearing shall be conducted before
filing the report or making public any information contained
in the report. The Director may withhold the report from
public inspection for up to 60 days following the hearing.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/5-226 rep.)
(40 ILCS 5/6-220 rep.)
Section 10. The Illinois Pension Code is amended by
repealing Sections 5-226 and 6-220.
Section 99. Effective date. This Act takes effect July 1,
2023.