Illinois General Assembly - Full Text of SB2101
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Full Text of SB2101  103rd General Assembly

SB2101 103RD GENERAL ASSEMBLY

  
  

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2101

 

Introduced 2/9/2023, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/22C-115
40 ILCS 5/22C-116
40 ILCS 5/22C-119
40 ILCS 5/22C-123

    Amends the Firefighters' Pension Investment Fund Article of the Illinois Pension Code. Provides that a trustee shall qualify by taking an oath of office before the Secretary of State or the Board's appointed legal counsel (instead of only the Secretary of State). In a provision concerning reimbursement for travel expenses for trustees, removes a reference to the standards in effect for members of the Commission on Government Forecasting and Accountability. In a provision concerning voting for trustees by participants and beneficiaries, removes language requiring the ballot envelope to have a certificate stating that the person voting the ballot is entitled to vote. Provides that a trustee appointed to fill the vacancy of an elected trustee shall serve until a successor is elected. Removes language providing that for a vacancy of an elected trustee occurring with an unexpired term of 6 months or more, an election shall be conducted for the vacancy. Makes a conforming change. Provides that special elections to fill the remainder of an unexpired term vacated by an elected trustee shall be held concurrently with and in the same manner as the next regular election for an elected trustee position. Provides that a copy of the rules adopted by the Fund shall be posted on the Fund's website (instead of filed with the Secretary of State and the Department of Insurance). Makes changes concerning indemnification of the Fund, the board, and the officers and employees of the Fund. Makes other changes.


LRB103 30747 RPS 57226 b

 

 

A BILL FOR

 

SB2101LRB103 30747 RPS 57226 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, 22C-119, and 22C-123 as
6follows:
 
7    (40 ILCS 5/22C-115)
8    Sec. 22C-115. Board of Trustees of the Fund.
9    (a) No later than February 1, 2020 (one month after the
10effective date of Public Act 101-610) or as soon thereafter as
11may be practicable, the Governor shall appoint, by and with
12the advice and consent of the Senate, a transition board of
13trustees consisting of 9 members as follows:
14        (1) three members representing municipalities and fire
15    protection districts who are mayors, presidents, chief
16    executive officers, chief financial officers, or other
17    officers, executives, or department heads of
18    municipalities or fire protection districts and appointed
19    from among candidates recommended by the Illinois
20    Municipal League;
21        (2) three members representing participants who are
22    participants and appointed from among candidates
23    recommended by the statewide labor organization

 

 

SB2101- 2 -LRB103 30747 RPS 57226 b

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

 

 

SB2101- 3 -LRB103 30747 RPS 57226 b

1    participating pension funds and are elected by the mayors
2    and presidents of municipalities or fire protection
3    districts that have participating pension funds.
4        (2) Three members who are participants of
5    participating pension funds and elected by the
6    participants of participating pension funds.
7        (3) One member who is a beneficiary of a participating
8    pension fund and is elected by the beneficiaries of
9    participating pension funds.
10        (4) One member recommended by the Illinois Municipal
11    League who shall be appointed by the Governor with the
12    advice and consent of the Senate.
13        (5) One member recommended by the statewide labor
14    organization representing firefighters employed by at
15    least 85 municipalities and that is affiliated with the
16    Illinois State Federation of Labor who shall be appointed
17    by the Governor with the advice and consent of the Senate.
18    The permanent board of trustees shall select the
19chairperson of the permanent board of trustees from among the
20trustees for a term of 2 years. The holder of the office of
21chairperson shall alternate between a person elected or
22appointed under item (1) or (4) of this subsection (b) and a
23person elected or appointed under item (2), (3), or (5) of this
24subsection (b).
25    (c) Each trustee shall qualify by taking an oath of office
26before the Secretary of State or the Board's appointed legal

 

 

SB2101- 4 -LRB103 30747 RPS 57226 b

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

 

 

SB2101- 5 -LRB103 30747 RPS 57226 b

1to the contrary, any member of the transition board may also be
2elected or appointed as a member of the permanent board.
3    Notwithstanding any provision or interpretation of law to
4the contrary, any trustee of a fund established under Article
54 of this Code may also be appointed as a member of the
6transition board or elected or appointed as a member of the
7permanent board.
8    The restriction in Section 3.1 of the Lobbyist
9Registration Act shall not apply to a member of the transition
10board appointed pursuant to items (4) or (5) of subsection (a)
11or to a member of the permanent board appointed pursuant to
12items (4) or (5) of subsection (b).
13(Source: P.A. 101-610, eff. 1-1-20; 102-558, eff. 8-20-21.)
 
14    (40 ILCS 5/22C-116)
15    Sec. 22C-116. Conduct and administration of elections;
16terms of office.
17    (a) For the election of the permanent trustees, the
18transition board shall administer the initial elections and
19the permanent board shall administer all subsequent elections.
20Each board shall develop and implement such procedures as it
21determines to be appropriate for the conduct of such
22elections. For the purposes of obtaining information necessary
23to conduct elections under this Section, participating pension
24funds shall cooperate with the Fund.
25    (b) All nominations for election shall be by petition.

 

 

SB2101- 6 -LRB103 30747 RPS 57226 b

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

 

 

SB2101- 7 -LRB103 30747 RPS 57226 b

1    The board shall set a day for counting the ballots and name
2judges and clerks of election to conduct the count of ballots
3and shall make any rules necessary for the conduct of the
4count.
5    The candidate or candidates receiving the highest number
6of votes for each class of trustee shall be elected. In the
7case of a tie vote, the winner shall be determined in
8accordance with procedures developed by the Department of
9Insurance.
10    In lieu of conducting elections via mail balloting as
11described in this Section, the board may instead adopt rules
12to provide for elections to be carried out solely via Internet
13balloting or phone balloting. Nothing in this Section
14prohibits the Fund from contracting with a third party to
15administer the election in accordance with this Section.
16    (d) At any election, voting shall be as follows:
17        (1) Each person authorized to vote for an elected
18    trustee may cast one vote for each related position for
19    which such person is entitled to vote and may cast such
20    vote for any candidate or candidates on the ballot for
21    such trustee position.
22        (2) If only one candidate for each position is
23    properly nominated in petitions received, that candidate
24    shall be deemed the winner and no election under this
25    Section shall be required.
26        (3) The results shall be entered in the minutes of the

 

 

SB2101- 8 -LRB103 30747 RPS 57226 b

1    first meeting of the board following the tally of votes.
2    (e) The initial election for permanent trustees shall be
3held and the permanent board shall be seated no later than 12
4months after the effective date of this amendatory Act of the
5101st General Assembly. Each subsequent election shall be held
6no later than 30 days prior to the end of the term of the
7incumbent trustees.
8    (f) The elected trustees shall each serve for terms of 4
9years commencing on the first business day of the first month
10after election; except that the terms of office of the
11initially elected trustees shall be as follows:
12        (1) One trustee elected pursuant to item (1) of
13    subsection (b) of Section 22C-115 shall serve for a term
14    of 2 years and 2 trustees elected pursuant to item (1) of
15    subsection (b) of Section 22C-115 shall serve for a term
16    of 4 years;
17        (2) One trustee elected pursuant to item (2) of
18    subsection (b) of Section 22C-115 shall serve for a term
19    of 2 years and 2 trustees elected pursuant to item (2) of
20    subsection (b) of Section 22C-115 shall serve for a term
21    of 4 years; and
22        (3) The trustee elected pursuant to item (3) of
23    subsection (b) of Section 22C-115 shall serve for a term
24    of 2 years.
25    (g) The trustees appointed pursuant to items (4) and (5)
26of subsection (b) of Section 22C-115 shall each serve for a

 

 

SB2101- 9 -LRB103 30747 RPS 57226 b

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

 

 

SB2101- 10 -LRB103 30747 RPS 57226 b

1pursuant to item (2) of subsection (b) of Section 22C-115
2shall be filled by a participant of a participating pension
3fund; and a vacancy of a member elected under item (3) of
4subsection (b) of Section 22C-115 shall be filled by a
5beneficiary of a participating pension fund. A trustee
6appointed to fill the vacancy of an elected trustee shall
7serve until a successor is elected. Special elections to fill
8the remainder of an unexpired term vacated by an elected
9trustee shall be held concurrently with and in the same manner
10as the next regular election for an elected trustee position.
11    Vacancies among the appointed trustees shall be filled for
12unexpired terms by appointment in like manner as for the
13original appointments.
14(Source: P.A. 101-610, eff. 1-1-20.)
 
15    (40 ILCS 5/22C-119)
16    Sec. 22C-119. Adoption of rules. The board shall adopt
17such rules (not inconsistent with this Code) as in its
18judgment are desirable to implement and properly administer
19this Article. Such rules shall specifically provide for the
20following: (1) the implementation of the transition process
21described in Section 22C-120; (2) the process by which the
22participating pension funds may request transfer of funds; (3)
23the process for the transfer in, receipt for, and investment
24of pension assets received by the Fund after the transition
25period from the participating pension funds; (4) the process

 

 

SB2101- 11 -LRB103 30747 RPS 57226 b

1by which contributions from municipalities and fire protection
2districts for the benefit of the participating pension funds
3may, but are not required to, be directly transferred to the
4Fund; and (5) compensation and benefits for its employees. A
5copy of the rules adopted by the Fund shall be posted on the
6Fund's website filed with the Secretary of State and the
7Department of Insurance. The adoption and effectiveness of
8such rules shall not be subject to Article 5 of the Illinois
9Administrative Procedure Act.
10(Source: P.A. 101-610, eff. 1-1-20.)
 
11    (40 ILCS 5/22C-123)
12    Sec. 22C-123. Custodian. The pension fund assets
13transferred to or otherwise acquired by the Fund shall be
14placed in the custody of a custodian who shall provide
15adequate safe deposit facilities for those assets and hold all
16such securities, funds, and other assets subject to the order
17of the Fund.
18    Each custodian shall furnish a corporate surety bond of
19such amount as the board designates, which bond shall
20indemnify the Fund, the board, and the officers and employees
21of the Fund against any loss that may result from any action or
22failure to act by the custodian or any of the custodian's
23agents, or provide insurance coverages of such type and limits
24as the board designates. All charges incidental to the
25procuring and giving of any bond shall be paid by the board and

 

 

SB2101- 12 -LRB103 30747 RPS 57226 b

1each bond shall be in the custody of the board.
2(Source: P.A. 101-610, eff. 1-1-20.)