SB2100 EnrolledLRB103 28494 RPS 54875 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 22B-115 and 22B-116 as follows:
 
6    (40 ILCS 5/22B-115)
7    Sec. 22B-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 who are
14    mayors, presidents, chief executive officers, chief
15    financial officers, or other officers, executives, or
16    department heads of municipalities and appointed from
17    among candidates recommended by the Illinois Municipal
18    League;
19        (2) three members representing participants and who
20    are participants, 2 of whom shall be appointed from among
21    candidates recommended by a statewide fraternal
22    organization representing more than 20,000 active and
23    retired police officers in the State of Illinois, and one

 

 

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1    of whom shall be appointed from among candidates
2    recommended by a benevolent association representing sworn
3    police officers in the State of Illinois;
4        (3) two members representing beneficiaries and who are
5    beneficiaries, one of whom shall be appointed from among
6    candidates recommended by a statewide fraternal
7    organization representing more than 20,000 active and
8    retired police officers in the State of Illinois, and one
9    of whom shall be appointed from among candidates
10    recommended by a benevolent association representing sworn
11    police officers in the State of Illinois; and
12        (4) one member who is a representative of the Illinois
13    Municipal League.
14    The transition board members shall serve until the initial
15permanent board members are elected and qualified.
16    The transition board of trustees shall select the
17chairperson of the transition board of trustees from among the
18trustees for the duration of the transition board's tenure.
19    (b) The permanent board of trustees shall consist of 9
20members as follows:
21        (1) Three members who are mayors, presidents, chief
22    executive officers, chief financial officers, or other
23    officers, executives, or department heads of
24    municipalities that have participating pension funds and
25    are elected by the mayors and presidents of municipalities
26    that have participating pension funds.

 

 

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1        (2) Three members who are participants of
2    participating pension funds and are elected by the
3    participants of participating pension funds.
4        (3) Two members who are beneficiaries of participating
5    pension funds and are elected by the beneficiaries of
6    participating pension funds.
7        (4) One member recommended by the Illinois Municipal
8    League who shall be appointed by the Governor with the
9    advice and consent of the Senate.
10    The permanent board of trustees shall select the
11chairperson of the permanent board of trustees from among the
12trustees for a term of 2 years. The holder of the office of
13chairperson shall alternate between a person elected or
14appointed under item (1) or (4) of this subsection (b) and a
15person elected under item (2) or (3) of this subsection (b).
16    (c) Each trustee shall qualify by taking an oath of office
17before the Secretary of State or the legal counsel of the fund
18stating that he or she will diligently and honestly administer
19the affairs of the board and will not violate or knowingly
20permit the violation of any provision of this Article.
21    (d) Trustees shall receive no salary for service on the
22board but shall be reimbursed for travel expenses incurred
23while on business for the board according to Article 1 of this
24Code and rules adopted by the board the standards in effect for
25members of the Commission on Government Forecasting and
26Accountability.

 

 

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1    A municipality employing a police officer who is an
2elected or appointed trustee of the board must allow
3reasonable time off with compensation for the police officer
4to conduct official business related to his or her position on
5the board, including time for travel. The board shall notify
6the municipality in advance of the dates, times, and locations
7of this official business. The Fund shall timely reimburse the
8municipality for the reasonable costs incurred that are due to
9the police officer's absence.
10    (e) No trustee shall have any interest in any brokerage
11fee, commission, or other profit or gain arising out of any
12investment directed by the board. This subsection does not
13preclude ownership by any member of any minority interest in
14any common stock or any corporate obligation in which an
15investment is directed by the board.
16    (f) Notwithstanding any provision or interpretation of law
17to the contrary, any member of the transition board may also be
18elected or appointed as a member of the permanent board.
19    Notwithstanding any provision or interpretation of law to
20the contrary, any trustee of a fund established under Article
213 of this Code may also be appointed as a member of the
22transition board or elected or appointed as a member of the
23permanent board.
24    The restriction in Section 3.1 of the Lobbyist
25Registration Act shall not apply to a member of the transition
26board appointed pursuant to item (4) of subsection (a) or to a

 

 

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1member of the permanent board appointed pursuant to item (4)
2of subsection (b).
3(Source: P.A. 101-610, eff. 1-1-20.)
 
4    (40 ILCS 5/22B-116)
5    Sec. 22B-116. Conduct and administration of elections;
6terms of office.
7    (a) For the election of the permanent trustees, the
8transition board shall administer the initial elections and
9the permanent board shall administer all subsequent elections.
10Each board shall develop and implement such procedures as it
11determines to be appropriate for the conduct of such
12elections. For the purposes of obtaining information necessary
13to conduct elections under this Section, participating pension
14funds shall cooperate with the Fund.
15    (b) All nominations for election shall be by petition.
16Each petition for a trustee shall be executed as follows:
17        (1) for trustees to be elected by the mayors and
18    presidents of municipalities that have participating
19    pension funds, by at least 20 such mayors and presidents;
20        (2) for trustees to be elected by participants, by at
21    least 400 participants; and
22        (3) for trustees to be elected by beneficiaries, by at
23    least 100 beneficiaries.
24    (c) A separate ballot shall be used for each class of
25trustee. The board shall prepare and send ballots and ballot

 

 

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1envelopes to the participants and beneficiaries eligible to
2vote in accordance with rules adopted by the board. The
3ballots shall contain the names of all candidates in
4alphabetical order. The ballot envelope shall have on the
5outside a form of certificate stating that the person voting
6the ballot is a participant or beneficiary entitled to vote.
7    Participants and beneficiaries, upon receipt of the
8ballot, shall vote the ballot and place it in the ballot
9envelope, seal the envelope, execute the certificate thereon,
10and return the ballot to the Fund.
11    The board shall set a final date for ballot return, and
12ballots received prior to that date in a ballot envelope with a
13properly executed certificate and properly voted shall be
14valid ballots.
15    The board shall set a day for counting the ballots and name
16judges and clerks of election to conduct the count of ballots
17and shall make any rules necessary for the conduct of the
18count.
19    The candidate or candidates receiving the highest number
20of votes for each class of trustee shall be elected. In the
21case of a tie vote, the winner shall be determined in
22accordance with procedures developed by the Department of
23Insurance.
24    In lieu of conducting elections via mail balloting as
25described in this Section, the board may instead adopt rules
26to provide for elections to be carried out solely via Internet

 

 

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1balloting or phone balloting. Nothing in this Section
2prohibits the Fund from contracting with a third party to
3administer the election in accordance with this Section.
4    (d) At any election, voting shall be as follows:
5        (1) Each person authorized to vote for an elected
6    trustee may cast one vote for each related position for
7    which such person is entitled to vote and may cast such
8    vote for any candidate or candidates on the ballot for
9    such trustee position.
10        (2) If only one candidate for each position is
11    properly nominated in petitions received, that candidate
12    shall be deemed the winner and no election under this
13    Section shall be required.
14        (3) The results shall be entered in the minutes of the
15    first meeting of the board following the tally of votes.
16    (e) The initial election for permanent trustees shall be
17held and the permanent board shall be seated no later than 12
18months after the effective date of this amendatory Act of the
19101st General Assembly. Each subsequent election shall be held
20no later than 30 days prior to the end of the term of the
21incumbent trustees.
22    (f) The elected trustees shall each serve for terms of 4
23years commencing on the first business day of the first month
24after election; except that the terms of office of the
25initially elected trustees shall be as follows:
26        (1) one trustee elected pursuant to item (1) of

 

 

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

 

 

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1ceases to be a participant may serve the remainder of his or
2her elected term.
3    For a vacancy of a trustee under item (1) of subsection (b)
4of Section 22B-115, the vacancy shall be filled by appointment
5by the board for the unexpired term from a list of candidates
6recommended by the trustees under item (1) of subsection (b)
7of Section 22B-115. The list of candidates shall be compiled
8and presented to the board by the executive director of the
9Fund.
10    For a vacancy of a trustee under item (2) of subsection (b)
11of Section 22B-115, the vacancy shall be filled by appointment
12by the board for the unexpired term from a list of candidates
13recommended by the trustees under item (2) of subsection (b)
14of Section 22B-115. The list of candidates shall be compiled
15and presented to the board by the executive director of the
16Fund.
17    For a vacancy of a trustee under item (3) of subsection (b)
18of Section 22B-115, the vacancy shall be filled by appointment
19by the board for the unexpired term from a list of candidates
20recommended by the trustees under item (3) of subsection (b)
21of Section 22B-115. The list of candidates shall be compiled
22and presented to the board by the executive director of the
23Fund.
24    A trustee appointed to fill the vacancy of an elected
25trustee shall serve until a successor is elected. Special
26elections to fill the remainder of an unexpired term vacated

 

 

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1by an elected trustee shall be held concurrently with and in
2the same manner as the next regular election for an elected
3trustee position.
4    For a vacancy of an elected trustee occurring with an
5unexpired term of 6 months or more, an election shall be
6conducted for the vacancy in accordance with Section 22B-115
7and this Section.
8    For a vacancy of an elected trustee occurring with an
9unexpired term of less than 6 months, the vacancy shall be
10filled by appointment by the board for the unexpired term as
11follows: a vacancy of a member elected pursuant to item (1) of
12subsection (b) of Section 22B-115 shall be filled by a mayor,
13president, chief executive officer, chief financial officer,
14or other officer, executive, or department head of a
15municipality that has a participating pension fund; a vacancy
16of a member elected pursuant to item (2) of subsection (b) of
17Section 22B-115 shall be filled by a participant of a
18participating pension fund; and a vacancy of a member elected
19under item (3) of subsection (b) of Section 22B-115 shall be
20filled by a beneficiary of a participating pension fund.
21    Vacancies among the appointed trustees shall be filled for
22unexpired terms by appointment in like manner as for the
23original appointments.
24(Source: P.A. 101-610, eff. 1-1-20.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.