PEN CD-PENSION FUND REGULATION

Illinois General Assembly - Full Text of HB5119

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Full Text of HB5119

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HB5119 - 104th General Assembly

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HB5119 Engrossed
LRB104 19883 RPS 33333 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
5
changing Sections 1A-101, 1A-106, 1A-107, 1A-108, 1A-109, and
6
1A-113 as follows:

7

(40 ILCS 5/1A-101)
8

Sec. 1A-101.
Creation of Public Pension Division.
There is
9
created in the Department of Insurance a Public Pension
10
Division which, under the supervision and direction of the
11
Director of Insurance, shall exercise the powers and perform
12
the duties and functions prescribed under this Code. The
13
Division shall consist of an administrator,
a supervisor,
a
14
technical staff trained in the fundamentals of public pension
15
fund planning, operations, administration, and investment of
16
public pension funds, and such other personnel as may be
17
necessary properly and effectively to discharge the functions
18
of the Division.
19
(Source: P.A. 90-507, eff. 8-22-97.)

20

(40 ILCS 5/1A-106)
21

Sec. 1A-106.
Advisory services.
The Division
may

shall

22
render advisory services to the pension funds on all matters

HB5119 Engrossed
- 2 -
LRB104 19883 RPS 33333 b
1
pertaining to their operations and shall recommend any
2
corrective or clarifying legislation that it may deem
3
necessary. These recommendations
may

shall
be made in the
4
report of examination of the particular pension fund and in
5
the biennial report to the General Assembly under Section
6
1A-108. The recommendations may embrace all substantive
7
legislative and administrative policies, including, but not
8
limited to, matters dealing with the payment of annuities and
9
benefits, the investment of funds, and the condition of the
10
books, records, and accounts of the pension fund.
11
(Source: P.A. 90-507, eff. 8-22-97.)

12

(40 ILCS 5/1A-107)
13

Sec. 1A-107.
Automation of services.
The Division shall
14
automate its operations, services, and communications to the
15
fullest practical extent. This automation shall include, but
16
need not be limited to, the acquisition, use, and maintenance
17
of electronic data processing technology to (i) automate
18
Division operations as necessary to carry out its duties and
19
responsibilities under this Code, (ii) provide
by FY 2000

20
electronic exchange of information between the Division and
21
pension funds subject to this Code, (iii) provide to pension
22
funds and the general public and receive from pension funds
23
and the general public data on computer processible media, and
24
(iv) control access to information when necessary to protect
25
the confidentiality of persons identified in the information.

HB5119 Engrossed
- 3 -
LRB104 19883 RPS 33333 b
1

The Division shall ensure that this automation is designed
2
so as to protect any confidential data it may receive from a
3
pension fund. This Section does not authorize the Division or
4
the Department of Insurance to disclose any information
5
identifying specific pension fund participants or relating to
6
an identifiable pension fund participant.
7
(Source: P.A. 90-507, eff. 8-22-97.)

8

(40 ILCS 5/1A-108)
9

Sec. 1A-108.
Report to the Governor and General Assembly.
10
On or before October 1 following the convening of a regular
11
session of the General Assembly, the Division shall submit a
12
report to the Governor and General Assembly setting forth the
13
latest financial statements on the pension funds operating in
14
the State of Illinois, a summary of the current provisions
15
underlying these funds, and a report on any changes that have
16
occurred in these provisions since the date of the last such
17
report submitted by the Division.
18

The report shall
also
include the results of examinations
19
made by the Division of any pension fund
as well as the results
20
of examinations made by an independent certified public
21
accountant retained by the respective Consolidated Fund for
22
exams of Article 3 and 4 funds as provided in Section 1A-104.
23
The report shall also include

and
any specific recommendations
24
for legislative and administrative correction that the
25
Division deems necessary. The report may embody general

HB5119 Engrossed
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LRB104 19883 RPS 33333 b
1
recommendations concerning desirable changes in any existing
2
pension, annuity, or retirement laws designed to standardize
3
and establish uniformity in their basic provisions and to
4
bring about an improvement in the financial condition of the
5
pension funds. The purposes of these recommendations and the
6
objectives sought shall be clearly expressed in the report.
7

The requirement for reporting to the General Assembly
8
shall be satisfied by filing copies of the report as required
9
by Section 3.1 of the General Assembly Organization Act, and
10
filing additional copies with the State Government Report
11
Distribution Center for the General Assembly as required under
12
paragraph (t) of Section 7 of the State Library Act.
13

Upon request, the Division shall distribute additional
14
copies of the report at no charge to the secretary of each
15
pension fund established under Article 3 or 4, the treasurer
16
or fiscal officer of each municipality with an established
17
police or firefighter pension fund, the executive director of
18
every other pension fund established under this Code, and to
19
public libraries, State agencies, and police, firefighter, and
20
municipal organizations active in the public pension area.
21
(Source: P.A. 100-1148, eff. 12-10-18.)

22

(40 ILCS 5/1A-109)
23

Sec. 1A-109.
Annual statements by pension funds.
Each
24
pension fund shall furnish to the Division an annual statement
25
in a format prepared by the Division.

HB5119 Engrossed
- 5 -
LRB104 19883 RPS 33333 b
1

The Division shall design the form and prescribe the
2
content of the annual statement and,
if any changes are made to
3
the form for a given fiscal year,
at least 60 days prior to the
4
filing date, shall furnish the form to each pension fund for
5
completion. The annual statement shall be prepared by each
6
fund, properly certified by its officers, and submitted to the
7
Division within 6 months following the close of the fiscal
8
year of the pension fund.
9

The annual statement shall include, but need not be
10
limited to, the following:

11

(1) a financial balance sheet as of the close of the
12

fiscal year;

13

(2) a statement of income and expenditures;

14

(3) an actuarial balance sheet;

15

(4) statistical data reflecting age, service, and
16

salary characteristics concerning all participants;

17

(5) special facts concerning disability or other
18

claims;

19

(6) details on investment transactions that occurred
20

during the fiscal year covered by the report
, including,
21

for pension funds under Article 3 or 4 of this Code,
22

details on transactions pertaining to nontransferable
23

assets that funds retain after transferring investments to
24

the respective Consolidated Fund in accordance with Public
25

Act 101-610 that occurred during the fiscal year covered
26

by the report
;

HB5119 Engrossed
- 6 -
LRB104 19883 RPS 33333 b
1

(7) details on administrative expenses; and

2

(8) such other supporting data and schedules as in the
3

judgement of the Division may be necessary for a proper
4

appraisal of the financial condition of the pension fund
5

and the results of its operations. The annual statement
6

shall also specify the actuarial and interest tables used
7

in the operation of the pension fund.
8

For pension funds under Article 3 or 4 of this Code, after
9
the conclusion of the transition period, the Consolidated Fund
10
shall furnish directly to the Division the information
11
described in items (1) and (6) of this Section and shall
12
otherwise cooperate with the pension fund in the preparation
13
of the annual statement.
14

A pension fund that fails to file its annual statement
15
within the time prescribed under this Section is subject to
16
the penalty provisions of Section 1A-113.
17
(Source: P.A. 101-610, eff. 1-1-20.)

18

(40 ILCS 5/1A-113)
19

Sec. 1A-113.
Penalties.
20

(a) A pension fund that fails, without just cause, to file
21
its annual statement within the time prescribed under Section
22
1A-109 shall pay to the Department a penalty to be determined
23
by the Department, which shall not exceed $100 for each day's
24
delay.
25

(b) A pension fund that fails, without just cause, to file

HB5119 Engrossed
- 7 -
LRB104 19883 RPS 33333 b
1
its actuarial statement within the time prescribed under
2
Section 1A-110 or 1A-111 shall pay to the Department a penalty
3
to be determined by the Department, which shall not exceed
4
$100 for each day's delay.
5

(c) A pension fund that fails to pay a fee within the time
6
prescribed under Section 1A-112 shall pay to the Department a
7
penalty of 5% of the amount of the fee for each month or part
8
of a month that the fee is late. The entire penalty shall not
9
exceed 25% of the fee due.
10

(d) This subsection applies to any governmental unit, as
11
defined in Section 1A-102, that is subject to any law
12
establishing a pension fund or retirement system for the
13
benefit of employees of the governmental unit.
14

Whenever the Division determines by examination,
15
investigation, or in any other manner that the governing body
16
or any elected or appointed officer or official of a
17
governmental unit has failed to comply with any provision of
18
that law:

19

(1) The Director shall notify in writing the governing
20

body, officer, or official of the specific provision or
21

provisions of the law with which the person has failed to
22

comply.

23

(2) Upon receipt of the notice, the person notified
24

shall take immediate steps to comply with the provisions
25

of law specified in the notice.

26

(3) If the person notified fails to comply within a

HB5119 Engrossed
- 8 -
LRB104 19883 RPS 33333 b
1

reasonable time after receiving the notice, the Director
2

may hold a hearing at which the person notified may show
3

cause for noncompliance with the law.

4

(4) If upon hearing the Director determines that good
5

and sufficient cause for noncompliance has not been shown,
6

the Director may order the person to submit evidence of
7

compliance within a specified period of not less than 30
8

days.

9

(5) If evidence of compliance has not been submitted
10

to the Director within the period of time prescribed in
11

the order and no administrative appeal from the order has
12

been initiated, the Director may assess a civil penalty of
13

up to $2,000 against the governing body, officer, or
14

official for each noncompliance with an order of the
15

Director.
16

The Director shall develop by rule, with as much
17
specificity as practicable, the standards and criteria to be
18
used in assessing penalties and their amounts. The standards
19
and criteria shall include, but need not be limited to,
20
consideration of evidence of efforts made in good faith to
21
comply with applicable legal requirements. This rulemaking is
22
subject to the provisions of the Illinois Administrative
23
Procedure Act.
24

If a penalty is not paid within 30 days of the date of
25
assessment
and no just cause has been communicated
, the
26
Director
may

without further notice shall
report the act of

HB5119 Engrossed
- 9 -
LRB104 19883 RPS 33333 b
1
noncompliance to the Attorney General of this State. It shall
2
be the duty of the Attorney General or, if the Attorney General
3
so designates, the State's Attorney of the county in which the
4
governmental unit is located to apply promptly by complaint on
5
relation of the Director of Insurance in the name of the people
6
of the State of Illinois, as plaintiff, to the circuit court of
7
the county in which the governmental unit is located for
8
enforcement of the penalty prescribed in this subsection or
9
for such additional relief as the nature of the case and the
10
interest of the employees of the governmental unit or the
11
public may require.
12

(e) Whoever knowingly makes a false certificate, entry, or
13
memorandum upon any of the books or papers pertaining to any
14
pension fund or upon any statement, report, or exhibit filed
15
or offered for file with the Division or the Director of
16
Insurance in the course of any examination, inquiry, or
17
investigation, with intent to deceive the Director, the
18
Division, or any of its employees is guilty of a Class A
19
misdemeanor.
20

(f) Subsections (b) and (c) shall apply to pension funds
21
established under Article 3 or Article 4 of this Code only
22
prior to the conclusion of the transition period, and this
23
Section shall not apply to the Consolidated Funds.
24
(Source: P.A. 101-610, eff. 1-1-20.)

25

(40 ILCS 5/1A-201 rep.)

HB5119 Engrossed
- 10 -
LRB104 19883 RPS 33333 b
1

Section 10.
The Illinois Pension Code is amended by
2
repealing Section 1A-201.

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