2023 Illinois Compiled Statutes › Chapter 30 - FINANCE › 30 ILCS 430/ - Retirement Savings Act.

(30 ILCS 430/1) (from Ch. 127, par. 3751)
Sec. 1. 
		This Act may be cited as the Retirement Savings Act.
(Source: P.A. 86-892.)
(30 ILCS 430/2) (from Ch. 127, par. 3752)
Sec. 2. 
		(a) The General Assembly hereby finds and declares that: 
		(1) the citizens of Illinois have a right to retirement incomes that allow
them to live in comfort, dignity, and security; (2) the usefulness of the
Individual Retirement Account in providing retirement benefits has been
narrowed significantly by recent changes in tax laws; (3) the ability to
invest in one's future and save for retirement is of benefit to not only
the individual but to the economy as a whole; and (4) a federally
tax-exempt investment program for retirement would ultimately benefit all
citizens of Illinois.
(b) It is the purpose of this Retirement Savings Act to provide a
suitable investment vehicle for Illinois residents to achieve a dignified
retirement.  It is the intent of this Act to provide to the State of
Illinois an alternative low cost method of borrowing, within the purposes
authorized in the General Obligation Bond Act, as now or hereafter amended,
and which accomplishes these retirement objectives.
(Source: P.A. 86-892.)
(30 ILCS 430/3) (from Ch. 127, par. 3753)
Sec. 3. 
		
		For the purposes of this Act, the term "retirement savings
bonds" means general obligation bonds of the State issued under the General
Obligation Bond Act, as now or hereafter amended, in accordance with this
Act and designated as General Obligation Retirement Savings Bonds.
(Source: P.A. 86-892.)
(30 ILCS 430/4) (from Ch. 127, par. 3754)
Sec. 4. In order to provide investors with investment alternatives
suitable for retirement purposes, and in furtherance of the public policy
of this Act, bonds authorized by the provisions of the General Obligation
Bond Act, as now or hereafter amended, in a total aggregate principal
amount not to exceed $300,000,000, may be issued and sold from time to
time, and as often as practicable, as Retirement Savings Bonds in such
amounts as directed by the Governor, upon recommendation by the Director of
the
Governor's Office of Management and Budget.  Bonds to be issued and sold as Retirement
Savings Bonds shall be designated by the Governor and the Director of the
Governor's Office of Management and Budget as "General Obligation Retirement Savings Bonds" in
the proceedings authorizing the issuance of such Bonds, and shall be
subject to all of the terms and provisions of the General Obligation Bond
Act, as now or hereafter amended, except that Retirement Savings Bonds may
bear interest payable at such time or times and may be sold at such prices
and in such manner as
may be determined by the Governor and the Director of the
Governor's Office of Management and Budget.  If Retirement Savings Bonds are sold at public sale, the public
sale procedures shall be as set forth in Section 11 of the General
Obligation Bond Act, as now or hereafter amended.  Retirement Savings Bonds
may be sold at negotiated sale if the Director of the
Governor's Office of Management and Budget
						
determines that a negotiated sale will result in either a more efficient
and economic sale of such Bonds or greater access to such Bonds by
investors who are residents of the State of Illinois.  If any Retirement
Savings Bonds are sold at a negotiated sale, the underwriter or
underwriters to which such Bonds are sold shall (a) have an established
retail presence in the State of Illinois or (b) in the judgment of the
Director of the
Governor's Office of Management and Budget, have sufficient capability to make a
broad distribution of such Bonds to investors resident in the State of
Illinois.  In determining the aggregate original principal amount of
Retirement Savings Bonds that has been issued pursuant to this Act, the
aggregate original principal amount of such Bonds issued and sold shall be
taken into account.  Any bond issued under this Act may be payable in one
payment on a fixed date, or as determined appropriate by the Governor and
Director of the
Governor's Office of Management and Budget.
(Source: P.A. 94-793, eff. 5-19-06.)
(30 ILCS 430/5) (from Ch. 127, par. 3755)
Sec. 5. Security of Retirement Savings Bonds. Any Retirement Savings
Bonds issued under the General Obligation Bond Act, as now or hereafter
amended, in accordance with this
Act shall be direct, general obligations of
the State of Illinois and subject to repayment as provided in the General
Obligation Bond Act, as now or hereafter amended; however in the
proceedings of the Governor and
the Director of the
Governor's Office of Management and Budget
						
						authorizing the issuance of
Retirement Savings Bonds, such officials may covenant on behalf of the State
with or for the benefit of the holders of such Bonds as to all matters
deemed advisable by such officials, including the terms and conditions for
creating and maintaining sinking funds, reserve funds and such other special
funds as may be created in such proceedings, separate and apart from all
other funds and accounts of the State, and such officials may make such
other covenants as may be deemed necessary or desirable to assure the
prompt payment of the principal of and interest on such Bonds.  The
transfers to and appropriations from the General Obligation Bond Retirement
and Interest Fund required by the General Obligation Bond Act, as now or
hereafter amended, shall be made
to and from any fund or funds created pursuant to this Section for the
payment of the principal of and interest on any Retirement Savings Bonds.
(Source: P.A. 94-793, eff. 5-19-06.)
(30 ILCS 430/6) (from Ch. 127, par. 3756)
Sec. 6. 
		Compel payment; remedies of bondholders. 
		If the State fails
to pay the principal of or interest on any Retirement Savings Bonds or
premium, if any, as the same become due, or shall fail to make any required
monthly transfer of funds to provide for the payment of such principal,
interest or premium, a civil action to compel payment may be instituted in
the Supreme Court of Illinois as a court of original jurisdiction by the
holder or holders of the Retirement Savings Bonds with respect to which
such default of payment or failure to make a required transfer exists.
Delivery of a summons and a copy of the complaint to the Attorney General
shall constitute sufficient service to give the Supreme Court of Illinois
jurisdiction of the subject matter of such suit and jurisdiction over the
State and its officers named as defendants for the purpose of compelling
such payment or transfer.  Any case, controversy or cause of action concerning
the validity of this Act relates to the revenue of the State of Illinois.
If the Supreme Court of Illinois denies the holder or holders of Bonds
leave to file an original action in the Supreme Court, the bond holder or
holders may bring the action in the Circuit Court of Sangamon County.
(Source: P.A. 86-892.)
(30 ILCS 430/7) (from Ch. 127, par. 3757)
Sec. 7. In order to carry out the purposes of this Act, the Governor
and Director of the
Governor's Office of Management and Budget may include within the proceedings
authorizing the issuance of such Bonds, provisions or features deemed
complementary to the purposes herein and to make such Bonds attractive to
investors saving for retirement purposes.  Such features, in the opinion of
the Director of the
Governor's Office of Management and Budget, shall not adversely impact the
State's cost of funds.
Since this type of retirement savings bond may not be appropriate for all
persons, any advertisements regarding the sale of such Bonds, including
bond prospectuses shall include statements to the effect that (a) these
bonds may not be suitable for all investors and, (b) prior to purchase, it
is recommended that all investors consult with a qualified advisor regarding
the suitability of the bonds as investments for retirement purposes.
(Source: P.A. 94-793, eff. 5-19-06.)