Following the Lt. Governor’s task force report on local government consolidation reported in our last newsletter, in February Senate Bill 3317 was proposed by lame duck State Senator Dan Duffy. The Bill proposes the consolidation of Article 3 and 4 Pension Fund investments into the Illinois State Board of Investment. It also reduces the amount of training required of pension board trustees, changes all pension fund fiscal years to begin May 1, doubles the annual compliance fee paid by pension funds and authorizes the Department of Insurance to impose fines of up to $2,000 per day for noncompliance with certain provisions relating to transfer of investment assets.
You may recall from prior newsletters, the Department of Insurance and task force recommendations to consolidate were not based on any ascertainable standard and contradict the findings of the COGFA report on the effect of pension fund consolidation. At the time of this writing, the Bill has been assigned to committee but has not been scheduled for any hearings and no other action has been taken. Of course, given the significant changes the Bill proposes, we will continue to keep a close eye on its status.