102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3746

 

Introduced 2/22/2021, 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 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 permanent board shall constitute a quorum. Provides that all actions taken by 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. Makes conforming changes. Effective immediately.


LRB102 16113 RPS 21487 b

PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3746LRB102 16113 RPS 21487 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
5changing Sections 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) 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 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

 

 

HB3746- 2 -LRB102 16113 RPS 21487 b

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    The transition board members shall serve until the initial
16permanent board members are elected and qualified.
17    The transition board of trustees shall select the
18chairperson of the transition board of trustees from among the
19trustees for the duration of the transition board's tenure.
20    (b) The permanent board of trustees shall consist of 10 9
21members comprised as follows:
22        (1) Three members who are mayors, presidents, chief
23    executive officers, chief financial officers, or other
24    officers, executives, or department heads of
25    municipalities or fire protection districts that have
26    participating pension funds and are elected by the mayors

 

 

HB3746- 3 -LRB102 16113 RPS 21487 b

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

 

 

HB3746- 4 -LRB102 16113 RPS 21487 b

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

 

 

HB3746- 5 -LRB102 16113 RPS 21487 b

1preclude ownership by any member of any minority interest in
2any common stock or any corporate obligation in which an
3investment is directed by the board.
4    (f) Notwithstanding any provision or interpretation of law
5to the contrary, any member of the transition board may also be
6elected or appointed as a member of the permanent board.
7    Notwithstanding any provision or interpretation of law to
8the contrary, any trustee of a fund established under Article
94 of this Code may also be appointed as a member of the
10transition board or elected or appointed as a member of the
11permanent board.
12    The restriction in Section 3.1 of the Lobbyist
13Registration Act shall not apply to a member of the transition
14board appointed pursuant to items (4) or (5) of subsection (a)
15or to a member of the permanent board appointed pursuant to
16items (4) or (5) of subsection (b).
17(Source: P.A. 101-610, eff. 1-1-20; revised 8-20-20.)
 
18    (40 ILCS 5/22C-116)
19    Sec. 22C-116. Conduct and administration of elections;
20terms of office.
21    (a) For the election of the permanent trustees, the
22transition board shall administer the initial elections and
23the permanent board shall administer all subsequent elections.
24Each board shall develop and implement such procedures as it
25determines to be appropriate for the conduct of such

 

 

HB3746- 6 -LRB102 16113 RPS 21487 b

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

 

 

HB3746- 7 -LRB102 16113 RPS 21487 b

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

 

 

HB3746- 8 -LRB102 16113 RPS 21487 b

1    trustee may cast one vote for each related position for
2    which such person is entitled to vote and may cast such
3    vote for any candidate or candidates on the ballot for
4    such trustee position.
5        (2) If only one candidate for each position is
6    properly nominated in petitions received, that candidate
7    shall be deemed the winner and no election under this
8    Section shall be required.
9        (3) The results shall be entered in the minutes of the
10    first meeting of the board following the tally of votes.
11    (e) The initial election for permanent trustees shall be
12held and the permanent board shall be seated no later than 12
13months after the effective date of this amendatory Act of the
14101st General Assembly. Each subsequent election shall be held
15no later than 30 days prior to the end of the term of the
16incumbent trustees.
17    (f) The elected trustees shall each serve for terms of 4
18years commencing on the first business day of the first month
19after election; except that the terms of office of the
20initially elected trustees shall be as follows:
21        (1) One trustee elected pursuant to item (1) of
22    subsection (b) of Section 22C-115 shall serve for a term
23    of 2 years and 2 trustees elected pursuant to item (1) of
24    subsection (b) of Section 22C-115 shall serve for a term
25    of 4 years;
26        (2) One trustee elected pursuant to item (2) of

 

 

HB3746- 9 -LRB102 16113 RPS 21487 b

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

 

 

HB3746- 10 -LRB102 16113 RPS 21487 b

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

 

 

HB3746- 11 -LRB102 16113 RPS 21487 b

1agendas and materials and required postings for meetings of
2the board.
3    (b) Six members of the transition board shall constitute a
4quorum. Seven members of the permanent board shall constitute
5a quorum.
6    (c) All actions taken by the transition board and the
7permanent board shall require a vote of at least 5 trustees,
8except that the following shall require a vote of at least 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    All actions taken by the permanent board shall require a
16vote of at least 6 trustees, except that the following shall
17require a vote of at least 7 trustees: the adoption of
18actuarial assumptions; the selection of the chief investment
19officer, fiduciary counsel, or a consultant as defined under
20Section 1-101.5 of this Code; the adoption of rules for the
21conduct of election of trustees; and the adoption of asset
22allocation policies and investment policies.
23(Source: P.A. 101-610, eff. 1-1-20.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.