Topics & Report

              topics &
report
Teachers’ Retirement System of the State of Illinois
Summer 2009
TRS Governance Revised by New State Ethics Law
Governor appoints six new TRS Board members
A new Illinois law has prompted changes at the
Teachers’ Retirement System that impact the execu-tive
leadership of the System and the composition
of the TRS Board of Trustees.
Public Act 96-0006 removed the three sitting appoin-tees
to the TRS Board, while a fourth appointed
seat remained vacant. The composition of the TRS
Board of Trustees increased from 11 members to
13 members. The Board now consists of six elected
trustees, six members appointed by the Governor,
and the current Illinois State Superintendent
of Education.
On June 2, 2009, Governor Quinn appointed the
following trustees to serve on the Board on an
acting basis pending advice and consent of the
Illinois Senate: Matthew Berns of Highland Park,
Michael D. Busby of Kenilworth, Livia M. Kiser
of Downers Grove, Sidney Marder of Springfield,
Janice Reedus of Indian Head Pa rk, and
Sonia Walwyn of Naperville. For more informa-tion
about the appointees, please see page 2 of
this publication.
The law also terminated the employment of TRS
Executive Director Jon Bauman effective July 1,
2009, a provision that TRS was not consulted about
in the final days before the law was approved. On
April 8, 2009, Mr. Bauman voluntarily tendered
his resignation and TRS Chief Investment Officer
Stan Rupnik was appointed to serve as acting exec-utive
director until a permanent director is hired.
Under the law, the Illinois State Superintendent
of Education, ex-officio, will continue to serve as
president of the TRS Board of Trustees. “One of the
board’s top priorities is to secure a permanent exec-utive
director for TRS. But our mission to safeguard
the retirement security of our members remains
the same,” said Illinois State Superintendent
Christopher Koch, who joined the Board in 2006.
The Board is in the process of selecting an executive
search firm. The firm will conduct a nationwide
search to identify qualified candidates for the exec-utive
director position. The Rules and Personnel
Committee will assist with the search.
The new gubernatorial appointees join Mr. Koch and
the six existing elected TRS trustees: Jan Cleveland
of Carmi, elected by active members since 1997,
Cinda Klickna of Springfield, elected by active
members since 2003, Sharon Leggett of Evanston,
elected by active members since 1999, Bob Lyons of
Hoffman Estates, elected by annuitants since 2005,
Cynthia O’Neill of Carlyle, elected by annuitants
since 1999, and Molly Phalen of Rockford, elected
by active members since 1997.
Several TRS staff members initially assisted the
General Assembly in developing ethics language
contained in Public Act 96-0006. TRS supports
these provisions, which are designed to enhance
the transparency of investments made by all public
pension systems in Illinois.
The law requires competitive bidding every three
years for investment consulting relationships and
disclosure of direct or indirect fees, commissions,
penalties and other compensation paid to all system
asset managers and consultants. All competitive
searches, contracts and the performance of asset
managers must also be made available online.
Page 2
Acting Executive Director,
New Trustees
Page 3
Legislative Update
Page 4
Federal Withholding, New Law,
Web Videos, Going Green
Page 5
Fall Member Meetings
Page 6
Out-of-System Service
Page 7
Post-retirement Limits
Highlights