SB 1264 amends the Revised Uniform Unclaimed Property Act to ensure that annuity, pension and benefit funds held in a fiduciary capacity by or on behalf of a retirement system, pension fund or investment board under the Illinois Pension Code remain in their respective trusts. SB 1264 also requires pension funds, retirement systems and investment boards created pursuant to Articles 3, 4 and 22 of the Illinois Pension Code to adhere to certain compliance requirements regarding best practices to locate owners of unclaimed property.
Public retirement systems were previously exempt from the Uniform Distribution of Unclaimed Property Act. However, this exemption did not carry over to the newly created Revised Uniform Unclaimed Property Act, which became effective on January 1, 2018. As a result, under current law, public retirement systems face conflicting requirements under IRS rules and regulations and the new Revised Uniform Unclaimed Property Act. SB 1264 represents a compromise between public retirement systems and the state treasurer’s office on the administration of the Revised Uniform Unclaimed Property Act.
Specifically, as it relates to SURS, SB 1264 requires each public retirement system to report the following information by November 1 of each year to the state treasurer’s office about property presumed abandoned in an annuity, pension or benefit fund held in a fiduciary capacity by or on behalf of that public retirement system: (1) the name of the owner and names of any beneficiaries; (2) the last known address, if known; (3) the Social Security number or taxpayer identification number, if known or readily ascertainable; and (4) the dollar amount. SB 1264 prohibits the payment or delivery of any annuity, pension or benefit funds held in a fiduciary capacity by or on behalf of a public retirement system to the state treasurer’s office. In this manner, SB 1264 allows each public retirement system to keep its assets in its respective trust, while simultaneously enabling the state treasurer’s office to assist in reuniting owners with their unclaimed property.
The provisions of SB 1264 (except for the reporting requirements and the additional compliance provisions for Article 3, 4, and 22 pension funds, retirement systems, and investment boards) apply retroactively to January 1, 2018 (the effective date of the Revised Uniform Unclaimed Property Act).
SB 1264 takes effect in accordance with the Effective Date of Laws Act.