Bill Text: IL HB5096 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Firefighters' Pension Investment Fund Article of the Illinois Pension Code. Adds a member, to be appointed by the Governor, who is recommended by a statewide association representing fire protection districts to the transition board of trustees of the investment fund and the permanent board of trustees of the investment fund. Provides that at least one of the 3 elected members who are mayors, presidents, chief executive officers, chief financial officers, or other officers, executives, or department heads of municipalities or fire protection districts that have participating pension funds must be from a fire protection district. Provides that if the candidate or candidates receiving the highest number of votes would result in there being no trustee who is from a fire protection district, then the candidate receiving the highest number of votes who is from a fire protection district shall be elected. Provides that 7 members (instead of 6 members) of the board shall constitute a quorum. Provides that all actions taken by the transition board and the permanent board shall require a vote of at least 6 (instead of 5) trustees, except that certain actions shall require a vote of at least 7 (instead of 6) trustees. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB5096 Detail]

Download: Illinois-2019-HB5096-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB5096 Introduced , by Rep. Steven Reick SYNOPSIS AS INTRODUCED:
40 ILCS 5/22C-115
40 ILCS 5/22C-116
40 ILCS 5/22C-117
Amends the Firefighters' Pension Investment Fund Article of the Illinois Pension Code. Adds a member, to be appointed by the Governor, who is recommended by a statewide association representing fire protection districts to the transition board of trustees of the investment fund and the permanent board of trustees of the investment fund. Provides that at least one of the 3 elected members who are mayors, presidents, chief executive officers, chief financial officers, or other officers, executives, or department heads of municipalities or fire protection districts that have participating pension funds must be from a fire protection district. Provides that if the candidate or candidates receiving the highest number of votes would result in there being no trustee who is from a fire protection district, then the candidate receiving the highest number of votes who is from a fire protection district shall be elected. Provides that 7 members (instead of 6 members) of the board shall constitute a quorum. Provides that all actions taken by the transition board and the permanent board shall require a vote of at least 6 (instead of 5) trustees, except that certain actions shall require a vote of at least 7 (instead of 6) trustees. Effective immediately.
LRB101 17517 RPS 66928 b
PENSION IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB5096 LRB101 17517 RPS 66928 b
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 22C-115, 22C-116, and 22C-117 as follows:
(40 ILCS 5/22C-115)
Sec. 22C-115. Board of Trustees of the Fund.
(a) The No later than one month after the effective date of
this amendatory Act of the 101st General Assembly or as soon
thereafter as may be practicable, the Governor shall appoint,
by and with the advice and consent of the Senate, a transition
board of trustees consisting of 10 9 members as follows:
(1) three members representing municipalities and fire
protection districts who are mayors, presidents, chief
executive officers, chief financial officers, or other
officers, executives, or department heads of
municipalities or fire protection districts and appointed
from among candidates recommended by the Illinois
Municipal League;
(2) three members representing participants who are
participants and appointed from among candidates
recommended by the statewide labor organization
representing firefighters employed by at least 85

HB5096 - 2 - LRB101 17517 RPS 66928 b
municipalities that is affiliated with the Illinois State
Federation of Labor;
(3) one member representing beneficiaries who is a
beneficiary and appointed from among the candidate or
candidates recommended by the statewide labor organization
representing firefighters employed by at least 85
municipalities that is affiliated with the Illinois State
Federation of Labor; and
(4) one member recommended by the Illinois Municipal
League; and
(5) one member who is a participant recommended by the
statewide labor organization representing firefighters
employed by at least 85 municipalities and that is
affiliated with the Illinois State Federation of Labor;
and .
(6) one member who is recommended by a statewide
association representing fire protection districts.
The transition board members shall serve until the initial
permanent board members are elected and qualified.
The transition board of trustees shall select the
chairperson of the transition board of trustees from among the
trustees for the duration of the transition board's tenure.
(b) The permanent board of trustees shall consist of 10 9
members comprised as follows:
(1) Three members who are mayors, presidents, chief
executive officers, chief financial officers, or other

HB5096 - 3 - LRB101 17517 RPS 66928 b
officers, executives, or department heads of
municipalities or fire protection districts that have
participating pension funds and are elected by the mayors
and presidents of municipalities or fire protection
districts that have participating pension funds. At least
one of the 3 elected members must be from a fire protection
district.
(2) Three members who are participants of
participating pension funds and elected by the
participants of participating pension funds.
(3) One member who is a beneficiary of a participating
pension fund and is elected by the beneficiaries of
participating pension funds.
(4) One member recommended by the Illinois Municipal
League who shall be appointed by the Governor with the
advice and consent of the Senate.
(5) One member recommended by the statewide labor
organization representing firefighters employed by at
least 85 municipalities and that is affiliated with the
Illinois State Federation of Labor who shall be appointed
by the Governor with the advice and consent of the Senate.
(6) One member who is recommended by a statewide
association representing fire protection districts who
shall be appointed by the Governor with the advice and
consent of the Senate.
The permanent board of trustees shall select the

HB5096 - 4 - LRB101 17517 RPS 66928 b
chairperson of the permanent board of trustees from among the
trustees for a term of 2 years. The holder of the office of
chairperson shall alternate between a person elected or
appointed under item (1) or (4) of this subsection (b) and a
person elected or appointed under item (2), (3), or (5) of this
subsection (b).
(c) Each trustee shall qualify by taking an oath of office
before the Secretary of State stating that he or she will
diligently and honestly administer the affairs of the board and
will not violate or knowingly permit the violation of any
provision of this Article.
(d) Trustees shall receive no salary for service on the
board but shall be reimbursed for travel expenses incurred
while on business for the board according to the standards in
effect for members of the Commission on Government Forecasting
and Accountability.
A municipality or fire protection district employing a
firefighter who is an elected or appointed trustee of the board
must allow reasonable time off with compensation for the
firefighter to conduct official business related to his or her
position on the board, including time for travel. The board
shall notify the municipality or fire protection district in
advance of the dates, times, and locations of this official
business. The Fund shall timely reimburse the municipality or
fire protection district for the reasonable costs incurred that
are due to the firefighter's absence.

HB5096 - 5 - LRB101 17517 RPS 66928 b
(e) No trustee shall have any interest in any brokerage
fee, commission, or other profit or gain arising out of any
investment directed by the board. This subsection does not
preclude ownership by any member of any minority interest in
any common stock or any corporate obligation in which an
investment is directed by the board.
(f) Notwithstanding any provision or interpretation of law
to the contrary, any member of the transition board may also be
elected or appointed as a member of the permanent board.
Notwithstanding any provision or interpretation of law to
the contrary, any trustee of a fund established under Article 4
of this Code may also be appointed as a member of the
transition board or elected or appointed as a member of the
permanent board.
The restriction in Section 3.1 of the Lobbyist Registration
Act shall not apply to a member of the transition board
appointed pursuant to items (4) or (5) of subsection (a) or to
a member of the permanent board appointed pursuant to items (4)
or (5) of subsection (b).
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/22C-116)
Sec. 22C-116. Conduct and administration of elections;
terms of office.
(a) For the election of the permanent trustees, the
transition board shall administer the initial elections and the

HB5096 - 6 - LRB101 17517 RPS 66928 b
permanent board shall administer all subsequent elections.
Each board shall develop and implement such procedures as it
determines to be appropriate for the conduct of such elections.
For the purposes of obtaining information necessary to conduct
elections under this Section, participating pension funds
shall cooperate with the Fund.
(b) All nominations for election shall be by petition. Each
petition for a trustee shall be executed as follows:
(1) for trustees to be elected by the mayors and
presidents of municipalities or fire protection districts
that have participating pension funds, by at least 20 such
mayors and presidents; except that this item (1) shall
apply only with respect to participating pension funds;
(2) for trustees to be elected by participants, by at
least 400 participants; and
(3) for trustees to be elected by beneficiaries, by at
least 100 beneficiaries.
(c) A separate ballot shall be used for each class of
trustee. The board shall prepare and send ballots and ballot
envelopes to the participants and beneficiaries eligible to
vote in accordance with rules adopted by the board. The ballots
shall contain the names of all candidates in alphabetical
order. The ballot envelope shall have on the outside a form of
certificate stating that the person voting the ballot is a
participant or beneficiary entitled to vote.
Participants and beneficiaries, upon receipt of the

HB5096 - 7 - LRB101 17517 RPS 66928 b
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.
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.
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 necessary for the conduct of the
count.
The candidate or candidates receiving the highest number of
votes for each class of trustee shall be elected; except that
if the candidate or candidates under item (1) of subsection (b)
of Section 22C-115 receiving the highest number of votes would
result in there being no trustee who is from a fire protection
district, then the candidate receiving the highest number of
votes who is from a fire protection district shall be elected.
In the case of a tie vote, the winner shall be determined in
accordance with procedures developed by the Department of
Insurance.
In lieu of conducting elections via mail balloting as
described in this Section, the board may instead adopt rules to
provide for elections to be carried out solely via Internet
balloting or phone balloting. Nothing in this Section prohibits
the Fund from contracting with a third party to administer the

HB5096 - 8 - LRB101 17517 RPS 66928 b
election in accordance with this Section.
(d) At any election, voting shall be as follows:
(1) Each person authorized to vote for an elected
trustee may cast one vote for each related position for
which such person is entitled to vote and may cast such
vote for any candidate or candidates on the ballot for such
trustee position.
(2) If only one candidate for each position is properly
nominated in petitions received, that candidate shall be
deemed the winner and no election under this Section shall
be required.
(3) The results shall be entered in the minutes of the
first meeting of the board following the tally of votes.
(e) The initial election for permanent trustees shall be
held and the permanent board shall be seated no later than 12
months after the effective date of this amendatory Act of the
101st General Assembly. Each subsequent election shall be held
no later than 30 days prior to the end of the term of the
incumbent trustees.
(f) The elected trustees shall each serve for terms of 4
years commencing on the first business day of the first month
after election; except that the terms of office of the
initially elected trustees shall be as follows:
(1) One trustee elected pursuant to item (1) of
subsection (b) of Section 22C-115 shall serve for a term of
2 years and 2 trustees elected pursuant to item (1) of

HB5096 - 9 - LRB101 17517 RPS 66928 b
subsection (b) of Section 22C-115 shall serve for a term of
4 years;
(2) One trustee elected pursuant to item (2) of
subsection (b) of Section 22C-115 shall serve for a term of
2 years and 2 trustees elected pursuant to item (2) of
subsection (b) of Section 22C-115 shall serve for a term of
4 years; and
(3) The trustee elected pursuant to item (3) of
subsection (b) of Section 22C-115 shall serve for a term of
2 years.
(g) The trustees appointed pursuant to items (4) and (5) of
subsection (b) of Section 22C-115 shall each serve for a term
of 4 years commencing on the first business day of the first
month after the election of the elected trustees.
(h) A member of the board who was elected pursuant to item
(1) of subsection (b) of Section 22C-115 who ceases to serve as
a mayor, president, chief executive officer, chief financial
officer, or other officer, executive, or department head of a
municipality or fire protection district that has a
participating pension fund shall not be eligible to serve as a
member of the board and his or her position shall be deemed
vacant. A member of the board who was elected by the
participants of participating pension funds who ceases to be a
participant may serve the remainder of his or her elected term.
For a vacancy of an elected trustee occurring with an
unexpired term of 6 months or more, an election shall be

HB5096 - 10 - LRB101 17517 RPS 66928 b
conducted for the vacancy in accordance with Section 22C-115
and this Section.
For a vacancy of an elected trustee occurring with an
unexpired term of less than 6 months, the vacancy shall be
filled by appointment by the board for the unexpired term as
follows: a vacancy of a member elected pursuant to item (1) of
subsection (b) of Section 22C-115 shall be filled by a mayor,
president, chief executive officer, chief financial officer,
or other officer, executive, or department head of a
municipality or fire protection district that has a
participating pension fund; a vacancy of a member elected
pursuant to item (2) of subsection (b) of Section 22C-115 shall
be filled by a participant of a participating pension fund; and
a vacancy of a member elected under item (3) of subsection (b)
of Section 22C-115 shall be filled by a beneficiary of a
participating pension fund.
Vacancies among the appointed trustees shall be filled for
unexpired terms by appointment in like manner as for the
original appointments.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/22C-117)
Sec. 22C-117. Meetings of the board.
(a) The transition board and the permanent board shall each
meet at least quarterly and otherwise upon written request of
either the Chairperson or 3 other members. The Chairperson

HB5096 - 11 - LRB101 17517 RPS 66928 b
shall preside over meetings of the board. The executive
director and personnel of the board shall prepare agendas and
materials and required postings for meetings of the board.
(b) Seven Six members of the board shall constitute a
quorum.
(c) All actions taken by the transition board and the
permanent board shall require a vote of least 6 5 trustees,
except that the following shall require a vote of at least 7 6
trustees: the adoption of actuarial assumptions; the selection
of the chief investment officer, fiduciary counsel, or a
consultant as defined under Section 1-101.5 of this Code; the
adoption of rules for the conduct of election of trustees; and
the adoption of asset allocation policies and investment
policies.
(Source: P.A. 101-610, eff. 1-1-20.)
Section 99. Effective date. This Act takes effect upon
becoming law.