101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5096

 

Introduced 2/18/2020, by Rep. Steven Reick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/22C-115
40 ILCS 5/22C-116
40 ILCS 5/22C-117

    Amends the Firefighters' Pension Investment Fund Article of the Illinois Pension Code. Adds a member, to be appointed by the Governor, who is recommended by a statewide association representing fire protection districts to the transition board of trustees of the investment fund and the permanent board of trustees of the investment fund. Provides that at least one of the 3 elected members who are mayors, presidents, chief executive officers, chief financial officers, or other officers, executives, or department heads of municipalities or fire protection districts that have participating pension funds must be from a fire protection district. Provides that if the candidate or candidates receiving the highest number of votes would result in there being no trustee who is from a fire protection district, then the candidate receiving the highest number of votes who is from a fire protection district shall be elected. Provides that 7 members (instead of 6 members) of the board shall constitute a quorum. Provides that all actions taken by the transition board and the permanent board shall require a vote of at least 6 (instead of 5) trustees, except that certain actions shall require a vote of at least 7 (instead of 6) trustees. Effective immediately.


LRB101 17517 RPS 66928 b

PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5096LRB101 17517 RPS 66928 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 22C-115, 22C-116, and 22C-117 as follows:
 
6    (40 ILCS 5/22C-115)
7    Sec. 22C-115. Board of Trustees of the Fund.
8    (a) The No later than one month after the effective date of
9this amendatory Act of the 101st General Assembly or as soon
10thereafter as may be practicable, the Governor shall appoint,
11by and with the advice and consent of the Senate, a transition
12board of trustees consisting of 10 9 members as follows:
13        (1) three members representing municipalities and fire
14    protection districts who are mayors, presidents, chief
15    executive officers, chief financial officers, or other
16    officers, executives, or department heads of
17    municipalities or fire protection districts and appointed
18    from among candidates recommended by the Illinois
19    Municipal League;
20        (2) three members representing participants who are
21    participants and appointed from among candidates
22    recommended by the statewide labor organization
23    representing firefighters employed by at least 85

 

 

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1    municipalities that is affiliated with the Illinois State
2    Federation of Labor;
3        (3) one member representing beneficiaries who is a
4    beneficiary and appointed from among the candidate or
5    candidates recommended by the statewide labor organization
6    representing firefighters employed by at least 85
7    municipalities that is affiliated with the Illinois State
8    Federation of Labor; and
9        (4) one member recommended by the Illinois Municipal
10    League; and
11        (5) one member who is a participant recommended by the
12    statewide labor organization representing firefighters
13    employed by at least 85 municipalities and that is
14    affiliated with the Illinois State Federation of Labor;
15    and .
16        (6) one member who is recommended by a statewide
17    association representing fire protection districts.
18    The transition board members shall serve until the initial
19permanent board members are elected and qualified.
20    The transition board of trustees shall select the
21chairperson of the transition board of trustees from among the
22trustees for the duration of the transition board's tenure.
23    (b) The permanent board of trustees shall consist of 10 9
24members comprised as follows:
25        (1) Three members who are mayors, presidents, chief
26    executive officers, chief financial officers, or other

 

 

HB5096- 3 -LRB101 17517 RPS 66928 b

1    officers, executives, or department heads of
2    municipalities or fire protection districts that have
3    participating pension funds and are elected by the mayors
4    and presidents of municipalities or fire protection
5    districts that have participating pension funds. At least
6    one of the 3 elected members must be from a fire protection
7    district.
8        (2) Three members who are participants of
9    participating pension funds and elected by the
10    participants of participating pension funds.
11        (3) One member who is a beneficiary of a participating
12    pension fund and is elected by the beneficiaries of
13    participating pension funds.
14        (4) One member recommended by the Illinois Municipal
15    League who shall be appointed by the Governor with the
16    advice and consent of the Senate.
17        (5) One member recommended by the statewide labor
18    organization representing firefighters employed by at
19    least 85 municipalities and that is affiliated with the
20    Illinois State Federation of Labor who shall be appointed
21    by the Governor with the advice and consent of the Senate.
22        (6) One member who is recommended by a statewide
23    association representing fire protection districts who
24    shall be appointed by the Governor with the advice and
25    consent of the Senate.
26    The permanent board of trustees shall select the

 

 

HB5096- 4 -LRB101 17517 RPS 66928 b

1chairperson of the permanent board of trustees from among the
2trustees for a term of 2 years. The holder of the office of
3chairperson shall alternate between a person elected or
4appointed under item (1) or (4) of this subsection (b) and a
5person elected or appointed under item (2), (3), or (5) of this
6subsection (b).
7    (c) Each trustee shall qualify by taking an oath of office
8before the Secretary of State stating that he or she will
9diligently and honestly administer the affairs of the board and
10will not violate or knowingly permit the violation of any
11provision of this Article.
12    (d) Trustees shall receive no salary for service on the
13board but shall be reimbursed for travel expenses incurred
14while on business for the board according to the standards in
15effect for members of the Commission on Government Forecasting
16and Accountability.
17    A municipality or fire protection district employing a
18firefighter who is an elected or appointed trustee of the board
19must allow reasonable time off with compensation for the
20firefighter to conduct official business related to his or her
21position on the board, including time for travel. The board
22shall notify the municipality or fire protection district in
23advance of the dates, times, and locations of this official
24business. The Fund shall timely reimburse the municipality or
25fire protection district for the reasonable costs incurred that
26are due to the firefighter's absence.

 

 

HB5096- 5 -LRB101 17517 RPS 66928 b

1    (e) No trustee shall have any interest in any brokerage
2fee, commission, or other profit or gain arising out of any
3investment directed by the board. This subsection does not
4preclude ownership by any member of any minority interest in
5any common stock or any corporate obligation in which an
6investment is directed by the board.
7    (f) Notwithstanding any provision or interpretation of law
8to the contrary, any member of the transition board may also be
9elected or appointed as a member of the permanent board.
10    Notwithstanding any provision or interpretation of law to
11the contrary, any trustee of a fund established under Article 4
12of this Code may also be appointed as a member of the
13transition board or elected or appointed as a member of the
14permanent board.
15    The restriction in Section 3.1 of the Lobbyist Registration
16Act shall not apply to a member of the transition board
17appointed pursuant to items (4) or (5) of subsection (a) or to
18a member of the permanent board appointed pursuant to items (4)
19or (5) of subsection (b).
20(Source: P.A. 101-610, eff. 1-1-20.)
 
21    (40 ILCS 5/22C-116)
22    Sec. 22C-116. Conduct and administration of elections;
23terms of office.
24    (a) For the election of the permanent trustees, the
25transition board shall administer the initial elections and the

 

 

HB5096- 6 -LRB101 17517 RPS 66928 b

1permanent board shall administer all subsequent elections.
2Each board shall develop and implement such procedures as it
3determines to be appropriate for the conduct of such elections.
4For the purposes of obtaining information necessary to conduct
5elections under this Section, participating pension funds
6shall cooperate with the Fund.
7    (b) All nominations for election shall be by petition. Each
8petition for a trustee shall be executed as follows:
9        (1) for trustees to be elected by the mayors and
10    presidents of municipalities or fire protection districts
11    that have participating pension funds, by at least 20 such
12    mayors and presidents; except that this item (1) shall
13    apply only with respect to participating pension funds;
14        (2) for trustees to be elected by participants, by at
15    least 400 participants; and
16        (3) for trustees to be elected by beneficiaries, by at
17    least 100 beneficiaries.
18    (c) A separate ballot shall be used for each class of
19trustee. The board shall prepare and send ballots and ballot
20envelopes to the participants and beneficiaries eligible to
21vote in accordance with rules adopted by the board. The ballots
22shall contain the names of all candidates in alphabetical
23order. The ballot envelope shall have on the outside a form of
24certificate stating that the person voting the ballot is a
25participant or beneficiary entitled to vote.
26    Participants and beneficiaries, upon receipt of the

 

 

HB5096- 7 -LRB101 17517 RPS 66928 b

1ballot, shall vote the ballot and place it in the ballot
2envelope, seal the envelope, execute the certificate thereon,
3and return the ballot to the Fund.
4    The board shall set a final date for ballot return, and
5ballots received prior to that date in a ballot envelope with a
6properly executed certificate and properly voted shall be valid
7ballots.
8    The board shall set a day for counting the ballots and name
9judges and clerks of election to conduct the count of ballots
10and shall make any rules necessary for the conduct of the
11count.
12    The candidate or candidates receiving the highest number of
13votes for each class of trustee shall be elected; except that
14if the candidate or candidates under item (1) of subsection (b)
15of Section 22C-115 receiving the highest number of votes would
16result in there being no trustee who is from a fire protection
17district, then the candidate receiving the highest number of
18votes who is from a fire protection district shall be elected.
19In the case of a tie vote, the winner shall be determined in
20accordance with procedures developed by the Department of
21Insurance.
22    In lieu of conducting elections via mail balloting as
23described in this Section, the board may instead adopt rules to
24provide for elections to be carried out solely via Internet
25balloting or phone balloting. Nothing in this Section prohibits
26the Fund from contracting with a third party to administer the

 

 

HB5096- 8 -LRB101 17517 RPS 66928 b

1election in accordance with this Section.
2    (d) At any election, voting shall be as follows:
3        (1) Each person authorized to vote for an elected
4    trustee may cast one vote for each related position for
5    which such person is entitled to vote and may cast such
6    vote for any candidate or candidates on the ballot for such
7    trustee position.
8        (2) If only one candidate for each position is properly
9    nominated in petitions received, that candidate shall be
10    deemed the winner and no election under this Section shall
11    be required.
12        (3) The results shall be entered in the minutes of the
13    first meeting of the board following the tally of votes.
14    (e) The initial election for permanent trustees shall be
15held and the permanent board shall be seated no later than 12
16months after the effective date of this amendatory Act of the
17101st General Assembly. Each subsequent election shall be held
18no later than 30 days prior to the end of the term of the
19incumbent trustees.
20    (f) The elected trustees shall each serve for terms of 4
21years commencing on the first business day of the first month
22after election; except that the terms of office of the
23initially elected trustees shall be as follows:
24        (1) One trustee elected pursuant to item (1) of
25    subsection (b) of Section 22C-115 shall serve for a term of
26    2 years and 2 trustees elected pursuant to item (1) of

 

 

HB5096- 9 -LRB101 17517 RPS 66928 b

1    subsection (b) of Section 22C-115 shall serve for a term of
2    4 years;
3        (2) One trustee elected pursuant to item (2) of
4    subsection (b) of Section 22C-115 shall serve for a term of
5    2 years and 2 trustees elected pursuant to item (2) of
6    subsection (b) of Section 22C-115 shall serve for a term of
7    4 years; and
8        (3) The trustee elected pursuant to item (3) of
9    subsection (b) of Section 22C-115 shall serve for a term of
10    2 years.
11    (g) The trustees appointed pursuant to items (4) and (5) of
12subsection (b) of Section 22C-115 shall each serve for a term
13of 4 years commencing on the first business day of the first
14month after the election of the elected trustees.
15    (h) A member of the board who was elected pursuant to item
16(1) of subsection (b) of Section 22C-115 who ceases to serve as
17a mayor, president, chief executive officer, chief financial
18officer, or other officer, executive, or department head of a
19municipality or fire protection district that has a
20participating pension fund shall not be eligible to serve as a
21member of the board and his or her position shall be deemed
22vacant. A member of the board who was elected by the
23participants of participating pension funds who ceases to be a
24participant may serve the remainder of his or her elected term.
25    For a vacancy of an elected trustee occurring with an
26unexpired term of 6 months or more, an election shall be

 

 

HB5096- 10 -LRB101 17517 RPS 66928 b

1conducted for the vacancy in accordance with Section 22C-115
2and this Section.
3    For a vacancy of an elected trustee occurring with an
4unexpired term of less than 6 months, the vacancy shall be
5filled by appointment by the board for the unexpired term as
6follows: a vacancy of a member elected pursuant to item (1) of
7subsection (b) of Section 22C-115 shall be filled by a mayor,
8president, chief executive officer, chief financial officer,
9or other officer, executive, or department head of a
10municipality or fire protection district that has a
11participating pension fund; a vacancy of a member elected
12pursuant to item (2) of subsection (b) of Section 22C-115 shall
13be filled by a participant of a participating pension fund; and
14a vacancy of a member elected under item (3) of subsection (b)
15of Section 22C-115 shall be filled by a beneficiary of a
16participating pension fund.
17    Vacancies among the appointed trustees shall be filled for
18unexpired terms by appointment in like manner as for the
19original appointments.
20(Source: P.A. 101-610, eff. 1-1-20.)
 
21    (40 ILCS 5/22C-117)
22    Sec. 22C-117. Meetings of the board.
23    (a) The transition board and the permanent board shall each
24meet at least quarterly and otherwise upon written request of
25either the Chairperson or 3 other members. The Chairperson

 

 

HB5096- 11 -LRB101 17517 RPS 66928 b

1shall preside over meetings of the board. The executive
2director and personnel of the board shall prepare agendas and
3materials and required postings for meetings of the board.
4    (b) Seven Six members of the board shall constitute a
5quorum.
6    (c) All actions taken by the transition board and the
7permanent board shall require a vote of least 6 5 trustees,
8except that the following shall require a vote of at least 7 6
9trustees: the adoption of actuarial assumptions; the selection
10of the chief investment officer, fiduciary counsel, or a
11consultant as defined under Section 1-101.5 of this Code; the
12adoption of rules for the conduct of election of trustees; and
13the adoption of asset allocation policies and investment
14policies.
15(Source: P.A. 101-610, eff. 1-1-20.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.