Current through Register Vol. 48, No. 38, September 20, 2024
a) The functions of
the Board are limited to investment management and such other duties and
responsibilities as are directed or permitted by statute. With respect to
investment management more specifically:
To invest, reinvest, exchange and perform all
investment functions with regard to reserves, funds, assets, securities and
moneys which the Board is authorized to invest, and to preserve and protect
such reserves, funds, assets, securities and moneys, including, but not limited
to, authority to vote any stocks, bonds or other securities and to give general
or special proxies or powers of attorney with or without power of
substitution [
40 ILCS
5/22A-106] .
1) The Board shall manage investments by
executing procedures that include, but are not limited to:
A) Performing due diligence on the investment
portfolio. (Examples of due diligence include monitoring the performance of
current investment portfolios, selecting new investment portfolios, determining
the asset allocation per portfolio and selecting investment managers to invest
portfolio assets.)
B) Adopting an
asset allocation policy to achieve efficiently the Board's long-term investment
objective. (Examples of policy considerations include examining all asset
classes and their appropriate benchmarks and allocating specific percentages of
assets to specific asset classes.)
C) Managing Board expenses. (Examples of such
management include negotiating competitive asset management fees with
investment managers and monitoring the Board's operating budget.)
D) Complying with the Illinois Pension Code [
40 ILCS 5 ]. (Examples of compliance include adhering to statutory directives
such as the prudent utilization of emerging investment managers in managing
assets (see
40 ILCS
5/1-109.1(4)) and refraining from prohibited
transactions.)
2) The
Board's general policy governing investments shall require that, as
fiduciaries, the Board discharge its duties, with respect to pension fund
assets it manages, solely in the interest of the participants and
beneficiaries. (Examples of general investment policy include maintaining the
long-term investment objective established by the Board; investing with the
care, skill, prudence and diligence that a prudent person would use in the
conduct of an enterprise of like character with like aims; and diversifying
investments to reduce risk, enhance returns and commit meaningful investment
positions.)
b) State
Employees Deferred Compensation Plan (Plan)
1)
The Board shall be responsible for developing and establishing the Plan (see
40 ILCS 5/24-104
).
2) With respect to developing
and establishing the Plan, the Board shall:
A) Review investment offerings and offer
acceptable investment offerings as investment options for the Plan;
and
B) Supervise the Department of
Central Management Services' administration of the Plan.
3) Further explanation regarding the Board's
responsibilities with respect to the development and establishment of the Plan
are found in the following Board regulations: 80 Ill. Adm. Code 2700: Subpart A
(Introduction and Purpose of Plan); Subpart B (Definitions); Subpart C (the
Board's general supervision of the administration of the Plan); Subpart G
(distributions in the event of an unforeseeable emergency); Subpart I (ability
to amend or terminate Plan).
c) These functions shall not encompass any
duties or responsibilities related to the operation and administration of the
pension funds in any other area than that of investments.
