Full Text of HB1165 98th General Assembly
HB1165sam001 98TH GENERAL ASSEMBLY | Sen. Terry Link Filed: 5/29/2014
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| 1 | | AMENDMENT TO HOUSE BILL 1165
| 2 | | AMENDMENT NO. ______. Amend House Bill 1165 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 1-113.2, 1-113.3, 1-113.4, 1-113.4a, 1A-108, | 6 | | 3-128, and 4-121 and by adding Section 1-113.4b as follows:
| 7 | | (40 ILCS 5/1-113.2)
| 8 | | Sec. 1-113.2.
List of permitted investments for all Article | 9 | | 3 or 4 pension
funds. Any pension fund established under | 10 | | Article 3 or 4 may invest in the
following items:
| 11 | | (1) Interest bearing direct obligations of the United | 12 | | States of America.
| 13 | | (2) Interest bearing obligations to the extent that they | 14 | | are fully
guaranteed or insured as to payment of principal and | 15 | | interest by the United
States of America.
| 16 | | (3) Interest bearing bonds, notes, debentures, or other |
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| 1 | | similar obligations
of agencies of the United States of | 2 | | America. For the purposes of this Section,
"agencies of the | 3 | | United States of America" includes: (i) the Federal National
| 4 | | Mortgage Association and the Student Loan Marketing | 5 | | Association; (ii) federal
land banks, federal intermediate | 6 | | credit banks,
federal farm credit banks, and any other entity | 7 | | authorized to
issue direct debt obligations of the United | 8 | | States of America under the Farm
Credit Act of 1971 or | 9 | | amendments to that Act; (iii) federal home loan banks and
the | 10 | | Federal Home Loan Mortgage Corporation; and (iv) any agency | 11 | | created
by Act of Congress that is authorized to issue direct | 12 | | debt obligations of the
United States of America.
| 13 | | (4) Interest bearing savings accounts or certificates of | 14 | | deposit, issued by
federally chartered banks or savings and | 15 | | loan associations, to the extent that
the deposits are insured | 16 | | by agencies or instrumentalities of the federal
government.
| 17 | | (5) Interest bearing savings accounts or certificates of | 18 | | deposit, issued by
State of Illinois chartered banks or savings | 19 | | and loan associations, to the
extent that the deposits are | 20 | | insured by agencies or instrumentalities of the
federal | 21 | | government.
| 22 | | (6) Investments in credit unions, to the extent that the | 23 | | investments are
insured by agencies or instrumentalities of the | 24 | | federal government.
| 25 | | (7) Interest bearing bonds of the State of Illinois.
| 26 | | (8) Pooled interest bearing accounts managed by the |
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| 1 | | Illinois Public
Treasurer's Investment Pool in accordance with | 2 | | the Deposit of State Moneys Act,
interest bearing funds or | 3 | | pooled accounts of the Illinois Metropolitan Investment Funds, | 4 | | and interest bearing funds or pooled accounts managed, | 5 | | operated, and
administered by banks, subsidiaries of banks, or | 6 | | subsidiaries of bank holding
companies in accordance with the | 7 | | laws of the State of Illinois.
| 8 | | (9) Interest bearing bonds or tax anticipation warrants of | 9 | | any county,
township, or municipal corporation of the State of | 10 | | Illinois.
| 11 | | (10) Direct obligations of the State of Israel, subject to | 12 | | the conditions
and limitations of item (5.1) of Section 1-113.
| 13 | | (11) Money market mutual funds managed by investment | 14 | | companies that are
registered under the federal Investment | 15 | | Company Act of 1940 and the Illinois
Securities Law of 1953 and | 16 | | are diversified, open-ended management investment
companies; | 17 | | provided that the portfolio of the money market mutual fund is
| 18 | | limited to the following:
| 19 | | (i) bonds, notes, certificates of indebtedness, | 20 | | treasury bills, or other
securities that are guaranteed by | 21 | | the full faith and credit of the United
States of America | 22 | | as to principal and interest;
| 23 | | (ii) bonds, notes, debentures, or other similar | 24 | | obligations of the United
States of America or its | 25 | | agencies; and
| 26 | | (iii) short term obligations of corporations organized |
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| 1 | | in the United
States with assets exceeding $400,000,000, | 2 | | provided that (A) the obligations
mature no later than 180 | 3 | | days from the date of purchase, (B) at the time of
| 4 | | purchase, the obligations are rated by at least 2 standard | 5 | | national rating
services at one of their 3 highest | 6 | | classifications, and (C) the obligations
held by the mutual | 7 | | fund do not exceed 10% of the corporation's outstanding
| 8 | | obligations.
| 9 | | (12) General accounts of life insurance companies | 10 | | authorized to transact
business in Illinois.
| 11 | | (13) Mutual funds comprised of bonds or money market | 12 | | instruments managed by an investment company defined and | 13 | | registered under the federal Investment Company Act of 1940 and | 14 | | registered under the Illinois Securities Law of 1953 that has | 15 | | been in operation for at least 3 years and has total net assets | 16 | | of $150 million or more across all share classes. | 17 | | (14) Investment grade corporate bonds. | 18 | | (15) American Depository Receipts (ADRs). | 19 | | (16) (13) Any combination of the following, not to exceed | 20 | | 10% of the pension
fund's net assets:
| 21 | | (i) separate accounts that are managed by life | 22 | | insurance companies
authorized to transact business in | 23 | | Illinois and are comprised of diversified
portfolios | 24 | | consisting of common or preferred stocks, bonds, real | 25 | | estate or loans upon real estate secured by first or second | 26 | | mortgages, commodities, currency, derivatives, or money |
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| 1 | | market
instruments; | 2 | | (ii) limited partnerships that are comprised of common | 3 | | or preferred stocks, bonds, real estate or loans upon real | 4 | | estate secured by first or second mortgages, commodities, | 5 | | currency, derivatives, or money market instruments; | 6 | | (iii) collective trust funds that are comprised of | 7 | | common or preferred stocks, bonds, real estate or loans | 8 | | upon real estate secured by first or second mortgages, | 9 | | commodities, currency, derivatives, or money market | 10 | | instruments; | 11 | | (iv) commingled funds that are comprised of common or | 12 | | preferred stocks, bonds, real estate or loans upon real | 13 | | estate secured by first or second mortgages, commodities, | 14 | | currency, derivatives, or money market instruments; | 15 | | (v) exchange traded funds (ETFs) that are comprised of | 16 | | common or preferred stocks, bonds, real estate or loans | 17 | | upon real estate secured by first or second mortgages, | 18 | | commodities, currency, derivatives, or money market | 19 | | instruments; | 20 | | (vi) exchange traded notes (ETNs) that are comprised of | 21 | | common or preferred stocks, bonds, real estate or loans | 22 | | upon real estate secured by first or second mortgages, | 23 | | commodities, currency, derivatives, or money market | 24 | | instruments;
| 25 | | (vii) (ii) separate accounts that are managed by | 26 | | insurance companies authorized
to transact business in |
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| 1 | | Illinois, and are comprised of real estate
or loans upon | 2 | | real estate secured by first or second mortgages; and
| 3 | | (viii) (iii) mutual funds that meet the following | 4 | | requirements:
| 5 | | (A) the mutual fund is managed by an investment | 6 | | company as defined and
registered under the federal | 7 | | Investment Company Act of 1940 and registered
under the | 8 | | Illinois Securities Law of 1953;
| 9 | | (B) the mutual fund has been in operation for at | 10 | | least 3 5 years;
| 11 | | (C) the mutual fund has total net assets of $150 | 12 | | $250 million or more across all share classes ; and
| 13 | | (D) the mutual fund is comprised of diversified | 14 | | portfolios of
common or preferred stocks, bonds, real | 15 | | estate or loans upon real estate secured by first or | 16 | | second mortgages, commodities, currency, derivatives, | 17 | | or money market instruments.
| 18 | | (17) Any combination of the following, not to exceed 20% of | 19 | | the pension fund's net assets: | 20 | | (i) Corporate bonds rated below investment grade. | 21 | | (ii) Non-agency mortgage backed or asset backed bonds. | 22 | | (14) Corporate bonds managed through an investment advisor | 23 | | must meet all of the following requirements: | 24 | | (1) The bonds must be rated as investment grade by one | 25 | | of the 2 largest rating services at the time of purchase. | 26 | | (2) If subsequently downgraded below investment grade, |
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| 1 | | the bonds must be liquidated from the portfolio within 90 | 2 | | days after being downgraded by the manager. | 3 | | (Source: P.A. 96-1495, eff. 1-1-11.)
| 4 | | (40 ILCS 5/1-113.3)
| 5 | | Sec. 1-113.3.
List of additional permitted investments for | 6 | | pension funds
with net assets of $10,000,000 or less $2,500,000 | 7 | | or more .
| 8 | | (a) In addition to the items in Section
3-113.2, a pension | 9 | | fund established under Article 3 or 4 that has net assets of | 10 | | $10,000,000 or less
at least $2,500,000 may invest a portion of | 11 | | its net assets in the following
items:
| 12 | | (1) Separate accounts that are managed by life | 13 | | insurance companies
authorized to transact business in | 14 | | Illinois and are comprised of diversified
portfolios | 15 | | consisting of common or preferred stocks, bonds, real | 16 | | estate or loans upon real estate secured by first or second | 17 | | mortgages, commodities, currency, derivatives, or money | 18 | | market
instruments.
| 19 | | (2) Mutual funds that meet the following requirements:
| 20 | | (i) the mutual fund is managed by an investment | 21 | | company as defined and
registered under the federal | 22 | | Investment Company Act of 1940 and registered
under the | 23 | | Illinois Securities Law of 1953;
| 24 | | (ii) the mutual fund has been in operation for at | 25 | | least 3 5 years;
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| 1 | | (iii) the mutual fund has total net assets of $150 | 2 | | $250 million or more across all share classes ; and
| 3 | | (iv) the mutual fund is comprised of diversified | 4 | | portfolios of common or
preferred stocks, bonds, real | 5 | | estate or loans upon real estate secured by first or | 6 | | second mortgages, commodities, currency, derivatives, | 7 | | or money market instruments.
| 8 | | (b) A pension fund's total investment in the items | 9 | | authorized under this
Section shall not exceed 70% 35% of the | 10 | | market value of the pension fund's net
present assets stated in | 11 | | its most recent annual report on file with the
Illinois | 12 | | Department of Insurance.
| 13 | | (Source: P.A. 90-507, eff. 8-22-97.)
| 14 | | (40 ILCS 5/1-113.4)
| 15 | | Sec. 1-113.4.
List of additional permitted investments for | 16 | | pension funds
with net assets of $10,000,000 or less $5,000,000 | 17 | | or more .
| 18 | | (a) In addition to the items in Sections 1-113.2 and | 19 | | 1-113.3, a pension fund
established under Article 3 or 4 that | 20 | | has net assets of $10,000,000 or less at least $5,000,000 and
| 21 | | has appointed an investment adviser under Section 1-113.5 may, | 22 | | through that
investment adviser, invest a portion of its assets | 23 | | in common and preferred
stocks authorized for investments of | 24 | | trust funds under the laws of the State
of Illinois. The stocks | 25 | | must meet all of the following requirements:
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| 1 | | (1) The common stocks have been are listed on a | 2 | | national securities exchange or
board of trade (as defined | 3 | | in the federal Securities Exchange Act of 1934 and
set | 4 | | forth in Section 3.G of the Illinois Securities Law of | 5 | | 1953) or quoted in
the National Association of Securities | 6 | | Dealers Automated Quotation System
National Market System | 7 | | (NASDAQ NMS) for at least 5 years .
| 8 | | (2) (Blank). The securities are of a corporation | 9 | | created or existing under the laws
of the United States or | 10 | | any state, district, or territory thereof and the
| 11 | | corporation has been in existence for at least 5 years.
| 12 | | (3) The corporation has not been in arrears on payment | 13 | | of dividends on its
preferred stock during the preceding 5 | 14 | | years.
| 15 | | (4) The market value of stock in any one corporation | 16 | | does not exceed 5% of
the cash and invested assets of the | 17 | | pension fund, and the investments in the
stock of any one | 18 | | corporation do not exceed 5% of the total outstanding stock | 19 | | of
that corporation.
| 20 | | (5) The straight preferred stocks or convertible | 21 | | preferred stocks are
issued or guaranteed by a corporation | 22 | | whose common stock qualifies for
investment by the board.
| 23 | | (6) The issuer of the stocks has been subject to the | 24 | | requirements of
Section 12 of the federal Securities | 25 | | Exchange Act of 1934 and has been current
with the filing | 26 | | requirements of Sections 13 and 14 of that Act during the
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| 1 | | preceding 3 years.
| 2 | | (b) A pension fund's total investment in the items | 3 | | authorized under this
Section and Section 1-113.3 shall not | 4 | | exceed 70% 35% of the market value of the
pension fund's net | 5 | | present assets stated in its most recent annual report on
file | 6 | | with the Illinois Department of Insurance.
| 7 | | (c) A pension fund that invests funds under this Section | 8 | | shall
electronically file with the Division any reports of its | 9 | | investment activities
that the Division may require, at the | 10 | | times and in the format required by the
Division.
| 11 | | (Source: P.A. 90-507, eff. 8-22-97.)
| 12 | | (40 ILCS 5/1-113.4a) | 13 | | Sec. 1-113.4a. List of additional permitted investments | 14 | | for Article 3 and 4 pension funds with net assets of | 15 | | $10,000,000 or less more . | 16 | | (a) In addition to the items in Sections 1-113.2 and | 17 | | 1-113.3, a pension fund established under Article 3 or 4 that | 18 | | has net assets of at least $10,000,000 or less and has | 19 | | appointed an investment adviser, as defined under Sections | 20 | | 1-101.4 and 1-113.5, may, through that investment adviser, | 21 | | invest an additional portion of its assets in common and | 22 | | preferred stocks and mutual funds. | 23 | | (b) The stocks must meet all of the following requirements: | 24 | | (1) The common stocks must be listed on a national | 25 | | securities exchange or board of trade (as defined in the |
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| 1 | | Federal Securities Exchange Act of 1934 and set forth in | 2 | | paragraph G of Section 3 of the Illinois Securities Law of | 3 | | 1953) or quoted in the National Association of Securities | 4 | | Dealers Automated Quotation System National Market System. | 5 | | (2) The securities must be of a corporation in | 6 | | existence for at least 5 years. | 7 | | (3) The market value of stock in any one corporation | 8 | | may not exceed 5% of the cash and invested assets of the | 9 | | pension fund, and the investments in the stock of any one | 10 | | corporation may not exceed 5% of the total outstanding | 11 | | stock of that corporation. | 12 | | (4) The straight preferred stocks or convertible | 13 | | preferred stocks must be issued or guaranteed by a | 14 | | corporation whose common stock qualifies for investment by | 15 | | the board. | 16 | | (c) The mutual funds must meet the following requirements: | 17 | | (1) The mutual fund must be managed by an investment | 18 | | company registered under the Federal Investment Company | 19 | | Act of 1940 and registered under the Illinois Securities | 20 | | Law of 1953. | 21 | | (2) The mutual fund must have been in operation for at | 22 | | least 5 years. | 23 | | (3) The mutual fund must have total net assets of | 24 | | $250,000,000 or more. | 25 | | (4) The mutual fund must be comprised of a diversified | 26 | | portfolio of common or preferred stocks, bonds, or money |
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| 1 | | market instruments. | 2 | | (d) A pension fund's total investment in the items | 3 | | authorized under this Section and Section 1-113.3 shall not | 4 | | exceed 50% effective July 1, 2011 and 55% effective July 1, | 5 | | 2012 of the market value of the pension fund's net present | 6 | | assets stated in its most recent annual report on file with the | 7 | | Department of Insurance. | 8 | | (e) A pension fund that invests funds under this Section | 9 | | shall electronically file with the Division any reports of its | 10 | | investment activities that the Division may require, at the | 11 | | time and in the format required by the Division.
| 12 | | (Source: P.A. 96-1495, eff. 1-1-11.) | 13 | | (40 ILCS 5/1-113.4b new) | 14 | | Sec. 1-113.4b. Permitted investments for Article 3 and 4 | 15 | | pension funds with net assets of more than $10,000,000. An | 16 | | Article 3 or 4 pension fund with net assets of more than | 17 | | $10,000,000 may invest the reserves
of the Fund in any | 18 | | reasonable and prudent investment, subject to the requirements | 19 | | and restrictions set forth in Sections 1-109, 1-109.1, 1-109.2, | 20 | | 1-110, 1-111, 1-114, and 1-115 of this Code. Investments made | 21 | | in accordance with Section 1-113, 1-113.2, 1-113.3, 1-113.4, or | 22 | | 1-113.4a of this Code shall be deemed prudent. | 23 | | No bank or savings and loan association shall receive | 24 | | investment funds as permitted by this Section, unless it has | 25 | | complied with the requirements established pursuant to Section |
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| 1 | | 6 of "An Act relating to certain investments of public funds by | 2 | | public agencies", approved July 23, 1943, as now or hereafter | 3 | | amended. The limitations set forth in that Section 6 shall be | 4 | | applicable only at the time of investment and shall not require | 5 | | the liquidation of any investment at any time. | 6 | | The board of the pension fund shall have the authority to | 7 | | enter into such agreements and to execute such documents as it | 8 | | determines to be necessary to complete any investment | 9 | | transaction.
All investments shall be clearly held and | 10 | | accounted for to indicate ownership by the pension fund. The | 11 | | board of the pension fund may direct the registration of | 12 | | securities or the holding in interests in real property in the | 13 | | name of the pension fund or in the name of a nominee created | 14 | | for the express purpose of registration of securities or | 15 | | holding interests in real property by a national or state bank | 16 | | or trust company authorized to conduct a trust business in the | 17 | | State of Illinois. | 18 | | Investments shall be carried at cost or at a value | 19 | | determined in accordance with generally accepted accounting | 20 | | principles.
| 21 | | (40 ILCS 5/1A-108)
| 22 | | Sec. 1A-108. Report to the Governor and General Assembly. | 23 | | (a) On or before
October 1 following the convening of a | 24 | | regular session of the General Assembly,
the Division shall | 25 | | submit a report to the Governor and General Assembly setting
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| 1 | | forth the latest financial statements on the pension funds | 2 | | operating in the
State of Illinois, a summary of the current | 3 | | provisions underlying these funds,
and a report on any changes | 4 | | that have occurred in these provisions since the
date of the | 5 | | last such report submitted by the Division.
| 6 | | The report shall also include the results of examinations | 7 | | made by the
Division of any pension fund and any specific | 8 | | recommendations for legislative
and administrative correction | 9 | | that the Division deems necessary. The report
may embody | 10 | | general recommendations concerning desirable changes in any | 11 | | existing
pension, annuity, or retirement laws designed to | 12 | | standardize and establish
uniformity in their basic provisions | 13 | | and to bring about an improvement in the
financial condition of | 14 | | the pension funds. The purposes of these
recommendations and | 15 | | the objectives sought shall be clearly expressed in the
report.
| 16 | | (b) In its annual report to the General Assembly due on or | 17 | | before October 1, 2014, the Division shall include its | 18 | | recommendations for a means of consolidating or averaging the | 19 | | various actuarial assumptions and financial conditions of the | 20 | | Article 3 and 4 pension funds that could be used in a unified | 21 | | and convenient way by the General Assembly in considering and | 22 | | evaluating the effects of proposed funding and benefit reforms | 23 | | for those pension funds. | 24 | | (c) The requirement for reporting to the General Assembly | 25 | | shall be satisfied by
filing copies of the report with the | 26 | | Speaker, the Minority Leader, and the
Clerk of the House of |
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| 1 | | Representatives, the President, the Minority Leader, and
the | 2 | | Secretary of the Senate, and the Legislative Research Unit, as | 3 | | required by
Section 3.1 of the General Assembly Organization | 4 | | Act, and filing additional
copies with the State Government | 5 | | Report Distribution Center for the General
Assembly as required | 6 | | under paragraph (t) of Section 7 of the State Library
Act.
| 7 | | Upon request, the Division shall distribute additional | 8 | | copies of the report
at no charge to the secretary of each | 9 | | pension fund established under Article 3
or 4, the treasurer or | 10 | | fiscal officer of each municipality with an established
police | 11 | | or firefighter pension fund, the executive director of every | 12 | | other
pension fund established under this Code, and to public | 13 | | libraries, State
agencies, and police, firefighter, and | 14 | | municipal organizations active in the
public pension area.
| 15 | | (Source: P.A. 90-507, eff. 8-22-97.)
| 16 | | (40 ILCS 5/3-128) (from Ch. 108 1/2, par. 3-128)
| 17 | | Sec. 3-128. Board created. A board of 6 members 5 members | 18 | | shall constitute a board of trustees to administer the
pension | 19 | | fund and to designate the beneficiaries thereof. The board | 20 | | shall be
known as the "Board of Trustees of the Police Pension | 21 | | Fund"
of the municipality.
| 22 | | Two members of the board shall be appointed by the mayor or | 23 | | president of
the board of trustees of the municipality | 24 | | involved. The 3rd and 4th
members of the board shall be elected | 25 | | from the active participants of
the pension fund by such active
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| 1 | | participants. The 5th member shall be elected by and from the
| 2 | | beneficiaries. Beginning January 1, 2015, a 6th member of the | 3 | | board shall be appointed by the mayor or president of
the board | 4 | | of trustees of the municipality.
| 5 | | One of the members appointed
by the mayor or president of | 6 | | the board of trustees shall serve for
one year beginning on the | 7 | | 2nd Tuesday in May
after the municipality comes under this | 8 | | Article. The other
initial appointed member shall serve for 2 | 9 | | years beginning on the same date. The new member appointed | 10 | | under this amendatory Act of the 98th General Assembly shall | 11 | | serve from the time of appointment to the second Tuesday of the | 12 | | second May occurring after that appointment. Their
successors | 13 | | shall serve for 2
years each or until their successors are | 14 | | appointed and have qualified.
| 15 | | The election for board members
shall be held biennially on | 16 | | the 3rd Monday in April, at such place or
places in the | 17 | | municipality and under the Australian ballot system and such
| 18 | | other regulations as shall be prescribed by the appointed | 19 | | members of the
board.
| 20 | | The active pension fund participants shall be entitled to | 21 | | vote only
for the active participant members of the board. All | 22 | | beneficiaries of
legal age may vote only for the member chosen | 23 | | from among the
beneficiaries. No person shall be entitled to | 24 | | cast more than one ballot at
such election. The term of elected | 25 | | members shall be 2 years,
beginning on the 2nd Tuesday of the | 26 | | first May after the election.
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| 1 | | Upon the death, resignation or inability to act of any | 2 | | elected board
member, his or her successor shall be elected for | 3 | | the
unexpired term at a special election, to be called by the | 4 | | board and
conducted in the same manner as the regular biennial | 5 | | election.
| 6 | | Members of the board shall neither receive nor have any | 7 | | right to
receive any salary from the pension fund for services | 8 | | performed as trustees
in that office.
| 9 | | (Source: P.A. 83-1440.)
| 10 | | (40 ILCS 5/4-121) (from Ch. 108 1/2, par. 4-121)
| 11 | | Sec. 4-121. Board created. There is created in each | 12 | | municipality or fire protection district a
board of trustees to | 13 | | be known as the "Board of Trustees of the Firefighters'
Pension | 14 | | Fund". The membership of the board for each municipality shall
| 15 | | be, respectively, as follows: in cities, the treasurer, clerk, | 16 | | marshal,
or chief officer of the fire department, and the | 17 | | comptroller if there is
one, or if not, the mayor; in each | 18 | | township, village or incorporated town,
the president of the | 19 | | municipality's board of trustees, the village or town
clerk, | 20 | | village or town attorney, village or town treasurer, and the | 21 | | chief
officer of the fire department; and in each fire | 22 | | protection district, the
president and other 2 members of its | 23 | | board of trustees and the marshal
or chief of its fire | 24 | | department or service, as the case may be; and in all
the | 25 | | municipalities above designated 3 additional persons chosen |
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| 1 | | from their
active firefighters and one other person who has | 2 | | retired under the "Firemen's
Pension Fund Act of 1919", or this | 3 | | Article. Notwithstanding any provision of this Section to the | 4 | | contrary, the term of office of each member of a board | 5 | | established on or before the 3rd Monday in April, 2006 shall | 6 | | terminate on the 3rd Monday in April, 2006, but all incumbent | 7 | | members shall continue to exercise all of the powers and be | 8 | | subject to all of the duties of a member of the board until all | 9 | | the new members of the board take office. | 10 | | Beginning on the 3rd Monday in April, 2006, the board for | 11 | | each municipality or fire protection district shall consist of | 12 | | 5 members , and beginning January 1, 2015, the board shall | 13 | | consist of 6 members . Two members of the board shall be | 14 | | appointed by the mayor or president of the board of trustees of | 15 | | the municipality or fire protection district involved , and | 16 | | beginning January 1, 2015, a third member of the board shall be | 17 | | appointed by the mayor or president of
the board of trustees of | 18 | | the municipality or fire protection district . Two members of | 19 | | the board shall be active participants of the pension fund who | 20 | | are elected from the active participants of the fund. One | 21 | | member of the board shall be a person who is retired under the | 22 | | Firemen's Pension Fund Act of 1919 or this Article who is | 23 | | elected from persons retired under the Firemen's Pension Fund | 24 | | Act of 1919 or this Article.
| 25 | | For the purposes
of this Section, a firefighter receiving a | 26 | | disability pension
shall be considered a retired firefighter. |
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| 1 | | In the event
that there are no retired firefighters under the | 2 | | Fund
or if none is willing to serve on the board, then an | 3 | | additional active
firefighter shall be elected to the board in | 4 | | lieu of the
retired firefighter that would otherwise be | 5 | | elected.
| 6 | | If the regularly constituted fire department of a | 7 | | municipality is
dissolved and Section 4-106.1 is not | 8 | | applicable, the board shall continue
to exist and administer | 9 | | the Fund so long as there continues to be any
annuitant or | 10 | | deferred pensioner in the Fund. In such cases, elections
shall | 11 | | continue to be held as specified in this Section, except that: | 12 | | (1)
deferred pensioners shall be deemed to be active members | 13 | | for the purposes
of such elections; (2) any otherwise | 14 | | unfillable positions on the board,
including ex officio | 15 | | positions, shall be filled by election from the
remaining | 16 | | firefighters and deferred pensioners of the Fund, to the extent
| 17 | | possible; and (3) if the membership of the board falls below 3 | 18 | | persons, the
Illinois Director of Insurance or his designee | 19 | | shall be deemed a member of
the board, ex officio.
| 20 | | The members chosen from the active and retired
firefighters | 21 | | shall be elected by ballot at elections to
be held on the 3rd
| 22 | | Monday in April of the applicable years under the Australian | 23 | | ballot system,
at such place or places, in the municipality, | 24 | | and under such regulations
as shall be prescribed by the board.
| 25 | | No person shall cast more than one vote for each
candidate | 26 | | for whom he or she is eligible to vote. In the elections for |
| | | 09800HB1165sam001 | - 20 - | LRB098 08854 RPS 60388 a |
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| 1 | | board
members to be chosen from the active firefighters, all | 2 | | active
firefighters and no
others may vote. In the elections | 3 | | for board members to be chosen from
retired firefighters, the | 4 | | retired firefighters and no others may vote.
| 5 | | Each member of the board so elected shall hold office for a | 6 | | term of 3
years and until his or her successor has been duly | 7 | | elected and qualified.
| 8 | | The board shall canvass the ballots and declare which | 9 | | persons have been
elected and for what term
or terms | 10 | | respectively. In case of a tie vote between 2 or more
| 11 | | candidates, the board shall determine by lot which candidate or | 12 | | candidates
have been elected and for what term or terms | 13 | | respectively. In the event
of the failure, resignation, or | 14 | | inability to act of any board member,
a successor shall be | 15 | | elected for the unexpired
term at a special election called by | 16 | | the board and conducted
in the same manner as a
regular | 17 | | election.
| 18 | | The board shall elect annually from its members a president
| 19 | | and secretary.
| 20 | | Board members shall not receive or have any right to | 21 | | receive any salary
from a pension fund for services performed | 22 | | as board members.
| 23 | | (Source: P.A. 96-1000, eff. 7-2-10.)
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.".
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