97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1679

 

Introduced 2/9/2011, by Sen. Jeffrey M. Schoenberg

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/3-132  from Ch. 108 1/2, par. 3-132
40 ILCS 5/3-140.2 new
40 ILCS 5/4-123  from Ch. 108 1/2, par. 4-123
40 ILCS 5/4-129.2 new
40 ILCS 5/7-174  from Ch. 108 1/2, par. 7-174
40 ILCS 5/7-175  from Ch. 108 1/2, par. 7-175
40 ILCS 5/7-175.1  from Ch. 108 1/2, par. 7-175.1
40 ILCS 5/7-199.4 new

    Amends the Downstate Police, Downstate Firefighters, and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Requires the board of each downstate police and downstate firefighter fund to transfer to the board of trustees of the Illinois Municipal Retirement Fund, for the management and administration of all investments owned by the funds. Terminates, upon completion of the transfer, the authority of the boards of each downstate police and downstate firefighter fund to make investments. Charges the board of trustees of the Illinois Municipal Retirement Fund with controlling and managing the investment expenditures and income, including interest dividends, capital gains, and other distributions on the investments of the downstate police and downstate firefighter funds. Provides for the election of a police officer trustee and a firefighter trustee to the board of trustees of the Illinois Municipal Retirement Fund.


LRB097 09794 JDS 49941 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1679LRB097 09794 JDS 49941 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 3-132, 4-123, 7-174, 7-175, and 7-175.1 and by adding
6Section 3-140.2, 4-129.2, and 7-199.4 as follows:
 
7    (40 ILCS 5/3-132)  (from Ch. 108 1/2, par. 3-132)
8    Sec. 3-132. To control and manage the Pension Fund. In
9accordance with the applicable provisions of Articles 1 and 1A
10and this Article, to control and manage, exclusively, the
11following:
12        (1) the pension fund,
13        (2) until the effective date of this amendatory Act of
14    the 97th General Assembly, investment expenditures and
15    income, including interest dividends, capital gains and
16    other distributions on the investments, and
17        (3) all money donated, paid, assessed, or provided by
18    law for the pensioning of disabled and retired police
19    officers, their surviving spouses, minor children, and
20    dependent parents.
21    All money received or collected shall be credited by the
22treasurer of the municipality to the account of the pension
23fund and held by the treasurer of the municipality subject to

 

 

SB1679- 2 -LRB097 09794 JDS 49941 b

1the order and control of the board. The treasurer of the
2municipality shall maintain a record of all money received,
3transferred, and held for the account of the board.
4(Source: P.A. 90-507, eff. 8-22-97.)
 
5    (40 ILCS 5/3-140.2 new)
6    Sec. 3-140.2. Investment of funds by the board of trustees
7of the Illinois Municipal Retirement Fund. The board of each
8fund must transfer to the board of trustees of the Illinois
9Municipal Retirement Fund, for management and administration,
10all investments owned by the fund of every kind and character.
11Upon completion of the transfer, the authority of the board of
12a fund to make investments shall terminate. Thereafter, all
13investments of the reserves of each fund shall be made by the
14board of trustees of the Illinois Municipal Retirement Fund.
15    The transfers shall be made not later than the first day of
16the fourth month next following the effective date of this
17amendatory Act of the 97th General Assembly. Before each
18transfer, an audit of the investments shall be completed by a
19certified public accountant who is (i) selected by the board
20created under this Article and (ii) approved by the Auditor
21General of the State of Illinois. The expense of each audit
22shall be assumed by the board created under this Article.
 
23    (40 ILCS 5/4-123)  (from Ch. 108 1/2, par. 4-123)
24    Sec. 4-123. To control and manage the Pension Fund. In

 

 

SB1679- 3 -LRB097 09794 JDS 49941 b

1accordance with the applicable provisions of Articles 1 and 1A
2and this Article, to control and manage, exclusively, the
3following:
4        (1) the pension fund,
5        (2) until the effective date of this amendatory Act of
6    the 97th General Assembly, investment expenditures and
7    income, including interest dividends, capital gains, and
8    other distributions on the investments, and
9        (3) all money donated, paid, assessed, or provided by
10    law for the pensioning of disabled and retired
11    firefighters, their surviving spouses, minor children, and
12    dependent parents.
13    All money received or collected shall be credited by the
14treasurer of the municipality to the account of the pension
15fund and held by the treasurer of the municipality subject to
16the order and control of the board. The treasurer of the
17municipality shall maintain a record of all money received,
18transferred, and held for the account of the board.
19(Source: P.A. 90-507, eff. 8-22-97.)
 
20    (40 ILCS 5/4-129.2 new)
21    Sec. 4-129.2. Investment of funds by the board of trustees
22of the Illinois Municipal Retirement Fund. The board of each
23fund must transfer to the board of trustees of the Illinois
24Municipal Retirement Fund, for management and administration,
25all investments owned by the fund of every kind and character.

 

 

SB1679- 4 -LRB097 09794 JDS 49941 b

1Upon completion of the transfer, the authority of the board of
2a fund to make investments shall terminate. Thereafter, all
3investments of the reserves of each fund shall be made by the
4board of trustees of the Illinois Municipal Retirement Fund.
5    The transfers shall be made not later than the first day of
6the fourth month next following the effective date of this
7amendatory Act of the 97th General Assembly. Before each
8transfer, an audit of the investments shall be completed by a
9certified public accountant who is (i) selected by the board
10created under this Article and (ii) approved by the Auditor
11General of the State of Illinois. The expense of each audit
12shall be assumed by the board created under this Article.
 
13    (40 ILCS 5/7-174)  (from Ch. 108 1/2, par. 7-174)
14    Sec. 7-174. Board created.
15    (a) A board of 10 8 members shall constitute a board of
16trustees authorized to carry out the provisions of this
17Article. Each trustee shall be a participating employee of a
18participating municipality or participating instrumentality or
19an annuitant of the Fund or a participant under Article 3 or 4,
20and no person shall be eligible to become a trustee after
21January 1, 1979 who does not have at least 8 years of
22creditable service.
23    (b) The board shall consist of representatives of various
24groups as follows:
25        1. 4 trustees shall be a chief executive officer, chief

 

 

SB1679- 5 -LRB097 09794 JDS 49941 b

1    finance officer, or other officer, executive or department
2    head of a participating municipality or participating
3    instrumentality, and each such trustee shall be designated
4    as an executive trustee.
5        2. 3 trustees shall be employees of a participating
6    municipality or participating instrumentality and each
7    such trustee shall be designated as an employee trustee.
8        3. One trustee shall be an annuitant of the Fund, who
9    shall be designated the annuitant trustee.
10        4. One trustee shall be a police officer who
11    participates in a fund established under Article 3, who
12    shall be designated the police officer trustee.
13        5. One trustee shall be a firefighter who participates
14    in a fund established under Article 4, who shall be
15    designated the firefighter trustee.
16    (c) A person elected as a trustee shall qualify as a
17trustee, after declaration by the board that he has been duly
18elected, upon taking and subscribing to the constitutional oath
19of office and filing same in the office of the Fund.
20    (d) The term of office of each trustee shall begin upon
21January 1 of the year following the year in which he is elected
22and shall continue for a period of 5 years and until a
23successor has been elected and qualified, or until prior
24resignation, death, incapacity or disqualification.
25    (e) Any elected trustee (other than the annuitant trustee)
26shall be disqualified immediately upon termination of

 

 

SB1679- 6 -LRB097 09794 JDS 49941 b

1employment with all participating municipalities and
2instrumentalities thereof or upon any change in status which
3removes any such trustee from all employments within the group
4he represents. The annuitant trustee shall be disqualified upon
5termination of his or her annuity.
6    (f) The trustees shall fill any vacancy in the board by
7appointment, for the period until the next election of
8trustees, or, if the remaining term is less than 2 years, for
9the remainder of the term, and until his successor has been
10elected and qualified.
11    (g) Trustees shall serve without compensation, but shall be
12reimbursed for any reasonable expenses incurred in attending
13meetings of the board and in performing duties on behalf of the
14Fund and for the amount of any earnings withheld by any
15employing municipality or participating instrumentality
16because of attendance at any board meeting.
17    (h) Each trustee shall be entitled to one vote on any and
18all actions before the board. At least 5 concurring votes shall
19be necessary for every decision or action by the board at any
20of its meetings. No decision or action shall become effective
21unless presented and so approved at a regular or duly called
22special meeting of the board.
23(Source: P.A. 95-890, eff. 8-22-08.)
 
24    (40 ILCS 5/7-175)  (from Ch. 108 1/2, par. 7-175)
25    Sec. 7-175. Board elections.

 

 

SB1679- 7 -LRB097 09794 JDS 49941 b

1    (a) During the period beginning on August 1 and ending on
2September 15 of each year the board shall accept nominations of
3candidates for election to the trusteeships for terms beginning
4the next January 1, new trusteeships or vacancies to be filled
5by election.
6    (b) All nominations shall be by petition. Three petitions
7for an executive trustee shall be signed by governing bodies of
8contributing participating municipalities or
9instrumentalities.
10    A petition for an employee trustee shall be signed by at
11least 350 participating employees who were participants during
12July of the current year and who, if their employment status
13remained unchanged, would be eligible to vote for such
14candidate at the following election.
15    A petition for an annuitant trustee shall be signed by at
16least 100 persons who were annuitants of the Fund during July
17of the current year and who, if their annuitant status remains
18unchanged, would be eligible to vote for the candidate at the
19following election.
20    A petition for a police officer trustee shall be signed by
21at least 100 persons who were participants of a fund
22established under Article 3 during July of the current year and
23who, if their status remains unchanged, would be eligible to
24vote for the candidate at the following election.
25    A petition for a firefighter trustee shall be signed by at
26least 100 persons who were participants of a fund established

 

 

SB1679- 8 -LRB097 09794 JDS 49941 b

1under Article 4 during July of the current year and who, if
2their annuitant status remains unchanged, would be eligible to
3vote for the candidate at the following election.
4    (c) A separate ballot shall be used for each class of
5trustee and the names of all candidates properly nominated in
6petitions received by the board shall be placed in alphabetical
7order upon the proper ballot. Where two employee trustees are
8elected to a full term in the same year, there shall be one
9election for the two trusteeships and the two candidates
10getting the highest number of votes shall be elected.
11    (d) At any election, each contributing participating
12municipality and participating instrumentality and each
13contributing participating employee employed by such
14participating municipality or participating instrumentality
15during September of any year, shall be entitled to vote as
16follows:
17        1. The governing body of each such participating
18    municipality and participating instrumentality shall have
19    one vote at any election in which an executive trustee is
20    to be elected, and may cast such vote for any candidate on
21    the executive trustee ballot.
22        2. Each participating employee shall have one vote at
23    any election in which an employee trustee is to be elected,
24    and may cast such vote for any candidate on the employee
25    trustee ballot.
26        3. Each annuitant of the Fund shall have one vote at

 

 

SB1679- 9 -LRB097 09794 JDS 49941 b

1    any election in which an annuitant trustee is to be
2    elected, and may cast that vote for any candidate on the
3    annuitant trustee ballot.
4        3.5. Each participant in a fund established under
5    Article 3 shall have one vote at any election in which a
6    police officer trustee is to be elected, and may cast such
7    vote for any candidate on the police officer trustee
8    ballot.
9        3.6. Each participant in a fund established under
10    Article 4 shall have one vote at any election in which a
11    firefighter trustee is to be elected, and may cast such
12    vote for any candidate on the firefighter trustee ballot.
13        4. A vote may be cast for a person not on the ballot by
14    writing in his or her name.
15    (e) The election shall be by ballot pursuant to the rules
16and regulations established by the board and shall be completed
17by December 31 of the year. The results shall be entered in the
18minutes of the meeting of the board following the tally of
19votes.
20    (f) In case of a tie vote, the candidate employed by or
21retired from the participating municipality or participating
22instrumentality having the greatest number of participating
23employees at the time shall be elected.
24(Source: P.A. 89-136, eff. 7-14-95.)
 
25    (40 ILCS 5/7-175.1)  (from Ch. 108 1/2, par. 7-175.1)

 

 

SB1679- 10 -LRB097 09794 JDS 49941 b

1    Sec. 7-175.1. Election of employee, and annuitant, police
2officer, and firefighter trustees.
3    (a) The board shall prepare and send ballots and ballot
4envelopes to the employees, and annuitants, police officers,
5and firefighters eligible to vote as of September of that year.
6The ballots shall contain the names of all candidates in
7alphabetical order and an appropriate place where a name may be
8written in on the ballot. The ballot envelope shall have on the
9outside a form of certificate stating that the person voting
10the ballot is a police officer, firefighter, participating
11employee, or annuitant entitled to vote.
12    (b) Employees, and annuitants, police officers, and
13firefighters, upon receipt of the ballot, shall vote the ballot
14and place it in the ballot envelope, seal the envelope, execute
15the certificate thereon and return the ballot to the Fund.
16    (c) The board shall set a final date for ballot return, and
17ballots received prior to that date in a ballot envelope with a
18properly executed certificate and properly voted, shall be
19valid ballots.
20    (d) The board shall set a day for counting the ballots and
21name judges and clerks of election to conduct the count of
22ballots, and shall make any rules and regulations necessary for
23the conduct of the count.
24(Source: P.A. 89-136, eff. 7-14-95.)
 
25    (40 ILCS 5/7-199.4 new)

 

 

SB1679- 11 -LRB097 09794 JDS 49941 b

1    Sec. 7-199.4. To administer the funds established under
2Articles 3 and 4. Notwithstanding any other provision of this
3Code, to control and manage investment expenditures and income,
4including interest dividends, capital gains and other
5distributions on the investments of the funds established under
6Articles 3 and 4.