SB1679 97TH GENERAL ASSEMBLY

LRB097 09794 JDS 49941 b

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.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by changing Sections 3-132, 4-123, 7-174, 7-175, and 7-175.1 and by adding Section 3-140.2, 4-129.2, and 7-199.4 as follows:

(40 ILCS 5/3-132) (from Ch. 108 1/2, par. 3-132)

Sec. 3-132. To control and manage the Pension Fund. In accordance with the applicable provisions of Articles 1 and 1A and this Article, to control and manage, exclusively, the following:

(1) the pension fund,

(2) until the effective date of this amendatory Act of the 97th General Assembly, investment expenditures and income, including interest dividends, capital gains and other distributions on the investments, and

(3) all money donated, paid, assessed, or provided by law for the pensioning of disabled and retired police officers, their surviving spouses, minor children, and dependent parents.

All money received or collected shall be credited by the treasurer of the municipality to the account of the pension fund and held by the treasurer of the municipality subject to the order and control of the board. The treasurer of the municipality shall maintain a record of all money received, transferred, and held for the account of the board.

(Source: P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/3-140.2 new)

Sec. 3-140.2. Investment of funds by the board of trustees of the Illinois Municipal Retirement Fund. The board of each fund must transfer to the board of trustees of the Illinois Municipal Retirement Fund, for management and administration, all investments owned by the fund of every kind and character. Upon completion of the transfer, the authority of the board of a fund to make investments shall terminate. Thereafter, all investments of the reserves of each fund shall be made by the board of trustees of the Illinois Municipal Retirement Fund.

The transfers shall be made not later than the first day of the fourth month next following the effective date of this amendatory Act of the 97th General Assembly. Before each transfer, an audit of the investments shall be completed by a certified public accountant who is (i) selected by the board created under this Article and (ii) approved by the Auditor General of the State of Illinois. The expense of each audit shall be assumed by the board created under this Article.

(40 ILCS 5/4-123) (from Ch. 108 1/2, par. 4-123)

Sec. 4-123. To control and manage the Pension Fund. In accordance with the applicable provisions of Articles 1 and 1A and this Article, to control and manage, exclusively, the following:

(1) the pension fund,

(2) until the effective date of this amendatory Act of the 97th General Assembly, investment expenditures and income, including interest dividends, capital gains, and other distributions on the investments, and

(3) all money donated, paid, assessed, or provided by law for the pensioning of disabled and retired firefighters, their surviving spouses, minor children, and dependent parents.

All money received or collected shall be credited by the treasurer of the municipality to the account of the pension fund and held by the treasurer of the municipality subject to the order and control of the board. The treasurer of the municipality shall maintain a record of all money received, transferred, and held for the account of the board.

(Source: P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/4-129.2 new)

Sec. 4-129.2. Investment of funds by the board of trustees of the Illinois Municipal Retirement Fund. The board of each fund must transfer to the board of trustees of the Illinois Municipal Retirement Fund, for management and administration, all investments owned by the fund of every kind and character. Upon completion of the transfer, the authority of the board of a fund to make investments shall terminate. Thereafter, all investments of the reserves of each fund shall be made by the board of trustees of the Illinois Municipal Retirement Fund.

The transfers shall be made not later than the first day of the fourth month next following the effective date of this amendatory Act of the 97th General Assembly. Before each transfer, an audit of the investments shall be completed by a certified public accountant who is (i) selected by the board created under this Article and (ii) approved by the Auditor General of the State of Illinois. The expense of each audit shall be assumed by the board created under this Article.

(40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174)

Sec. 7-174. Board created.

(a) A board of 10 8 members shall constitute a board of trustees authorized to carry out the provisions of this Article. Each trustee shall be a participating employee of a participating municipality or participating instrumentality or an annuitant of the Fund or a participant under Article 3 or 4, and no person shall be eligible to become a trustee after January 1, 1979 who does not have at least 8 years of creditable service.

(b) The board shall consist of representatives of various groups as follows:

1. 4 trustees shall be a chief executive officer, chief finance officer, or other officer, executive or department head of a participating municipality or participating instrumentality, and each such trustee shall be designated as an executive trustee.

2. 3 trustees shall be employees of a participating municipality or participating instrumentality and each such trustee shall be designated as an employee trustee.

3. One trustee shall be an annuitant of the Fund, who shall be designated the annuitant trustee.

4. One trustee shall be a police officer who participates in a fund established under Article 3, who shall be designated the police officer trustee.

5. One trustee shall be a firefighter who participates in a fund established under Article 4, who shall be designated the firefighter trustee.

(c) A person elected as a trustee shall qualify as a trustee, after declaration by the board that he has been duly elected, upon taking and subscribing to the constitutional oath of office and filing same in the office of the Fund.

(d) The term of office of each trustee shall begin upon January 1 of the year following the year in which he is elected and shall continue for a period of 5 years and until a successor has been elected and qualified, or until prior resignation, death, incapacity or disqualification.

(e) Any elected trustee (other than the annuitant trustee) shall be disqualified immediately upon termination of employment with all participating municipalities and instrumentalities thereof or upon any change in status which removes any such trustee from all employments within the group he represents. The annuitant trustee shall be disqualified upon termination of his or her annuity.

(f) The trustees shall fill any vacancy in the board by appointment, for the period until the next election of trustees, or, if the remaining term is less than 2 years, for the remainder of the term, and until his successor has been elected and qualified.

(g) Trustees shall serve without compensation, but shall be reimbursed for any reasonable expenses incurred in attending meetings of the board and in performing duties on behalf of the Fund and for the amount of any earnings withheld by any employing municipality or participating instrumentality because of attendance at any board meeting.

(h) Each trustee shall be entitled to one vote on any and all actions before the board. At least 5 concurring votes shall be necessary for every decision or action by the board at any of its meetings. No decision or action shall become effective unless presented and so approved at a regular or duly called special meeting of the board.

(Source: P.A. 95-890, eff. 8-22-08.)

(40 ILCS 5/7-175) (from Ch. 108 1/2, par. 7-175)

Sec. 7-175. Board elections.

(a) During the period beginning on August 1 and ending on September 15 of each year the board shall accept nominations of candidates for election to the trusteeships for terms beginning the next January 1, new trusteeships or vacancies to be filled by election.

(b) All nominations shall be by petition. Three petitions for an executive trustee shall be signed by governing bodies of contributing participating municipalities or instrumentalities.

A petition for an employee trustee shall be signed by at least 350 participating employees who were participants during July of the current year and who, if their employment status remained unchanged, would be eligible to vote for such candidate at the following election.

A petition for an annuitant trustee shall be signed by at least 100 persons who were annuitants of the Fund during July of the current year and who, if their annuitant status remains unchanged, would be eligible to vote for the candidate at the following election.

A petition for a police officer trustee shall be signed by at least 100 persons who were participants of a fund established under Article 3 during July of the current year and who, if their status remains unchanged, would be eligible to vote for the candidate at the following election.

A petition for a firefighter trustee shall be signed by at least 100 persons who were participants of a fund established under Article 4 during July of the current year and who, if their annuitant status remains unchanged, would be eligible to vote for the candidate at the following election.

(c) A separate ballot shall be used for each class of trustee and the names of all candidates properly nominated in petitions received by the board shall be placed in alphabetical order upon the proper ballot. Where two employee trustees are elected to a full term in the same year, there shall be one election for the two trusteeships and the two candidates getting the highest number of votes shall be elected.

(d) At any election, each contributing participating municipality and participating instrumentality and each contributing participating employee employed by such participating municipality or participating instrumentality during September of any year, shall be entitled to vote as follows:

1. The governing body of each such participating municipality and participating instrumentality shall have one vote at any election in which an executive trustee is to be elected, and may cast such vote for any candidate on the executive trustee ballot.

2. Each participating employee shall have one vote at any election in which an employee trustee is to be elected, and may cast such vote for any candidate on the employee trustee ballot.

3. Each annuitant of the Fund shall have one vote at any election in which an annuitant trustee is to be elected, and may cast that vote for any candidate on the annuitant trustee ballot.

3.5. Each participant in a fund established under Article 3 shall have one vote at any election in which a police officer trustee is to be elected, and may cast such vote for any candidate on the police officer trustee ballot.

3.6. Each participant in a fund established under Article 4 shall have one vote at any election in which a firefighter trustee is to be elected, and may cast such vote for any candidate on the firefighter trustee ballot.

4. A vote may be cast for a person not on the ballot by writing in his or her name.

(e) The election shall be by ballot pursuant to the rules and regulations established by the board and shall be completed by December 31 of the year. The results shall be entered in the minutes of the meeting of the board following the tally of votes.

(f) In case of a tie vote, the candidate employed by or retired from the participating municipality or participating instrumentality having the greatest number of participating employees at the time shall be elected.

(Source: P.A. 89-136, eff. 7-14-95.)

(40 ILCS 5/7-175.1) (from Ch. 108 1/2, par. 7-175.1)

Sec. 7-175.1. Election of employee, and annuitant, police officer, and firefighter trustees.

(a) The board shall prepare and send ballots and ballot envelopes to the employees, and annuitants, police officers, and firefighters eligible to vote as of September of that year. The ballots shall contain the names of all candidates in alphabetical order and an appropriate place where a name may be written in on the ballot. The ballot envelope shall have on the outside a form of certificate stating that the person voting the ballot is a police officer, firefighter, participating employee, or annuitant entitled to vote.

(b) Employees, and annuitants, police officers, and firefighters, upon receipt of the ballot, shall vote the ballot and place it in the ballot envelope, seal the envelope, execute the certificate thereon and return the ballot to the Fund.

(c) The board shall set a final date for ballot return, and ballots received prior to that date in a ballot envelope with a properly executed certificate and properly voted, shall be valid ballots.

(d) The board shall set a day for counting the ballots and name judges and clerks of election to conduct the count of ballots, and shall make any rules and regulations necessary for the conduct of the count.

(Source: P.A. 89-136, eff. 7-14-95.)

(40 ILCS 5/7-199.4 new)

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