SB0638 EngrossedLRB104 06916 RTM 16952 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by 
5adding Section 10-4-1.5 as follows:
 
6    (65 ILCS 5/10-4-1.5 new)
7    Sec. 10-4-1.5. Other postemployment benefit trusts.
8    (a) As used in this Section, "OPEB trust" means an other 
9postemployment benefit trust established by a municipality for 
10the purpose of providing for the funding and payment of health 
11and other fringe benefits for retired or terminated employees 
12of the municipality or employees of the municipality with 
13disabilities or for their dependents and beneficiaries.
14    (b) If the moneys in the general fund of a municipality 
15exceed the municipality's operating expenses for the 
16immediately preceding calendar year, then the municipality may 
17establish an OPEB trust or deposit moneys into an existing 
18OPEB trust.
19    (c) Trusts created by a municipality under this Section 
20are in addition to pension benefits provided by the 
21municipality for its employees under the Illinois Pension 
22Code.
23    (d) The OPEB trusts may employ such personnel and enter 
 
 
SB0638 Engrossed- 2 -LRB104 06916 RTM 16952 b

1into investment, advisory, or professional services or similar 
2contracts as deemed appropriate by the corporate authorities 
3of the municipality and recommended by the Treasurer of the 
4municipality.
5    (e) The OPEB trusts may be established in a manner so as to 
6be exempt from taxation under the provisions of applicable 
7federal and State tax laws.
8    (f) The trustee of the OPEB trusts shall be the 
9municipality. The treasurer of the municipality and the 
10trustee shall be indemnified by the municipality to the 
11fullest extent permitted by law for their actions taken with 
12respect to the OPEB trust.
13    (g) The assets of an OPEB trust shall be managed by the 
14treasurer of the municipality in any manner, subject only to 
15the prudent investor standard and any requirements of 
16applicable federal law. The limitations of any other statute 
17affecting the investment of municipal funds shall not apply to 
18OPEB trusts. The trustee shall adopt an investment policy 
19consistent with the standards articulated in Section 2.5 of 
20the Public Funds Investment Act. The investment policy shall 
21also provide for the availability of training. Funds of the 
22OPEB trusts may be used to pay for costs of administering the 
23OPEB trusts and for the benefits for which the trusts have been 
24established in accordance with the terms of the OPEB trust 
25documents.