SB2100 Enrolled LRB103 28494 RPS 54875 b
1		AN ACT concerning public employee benefits.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Illinois Pension Code is amended by
5		changing Sections 22B-115 and 22B-116 as follows:
6		(40 ILCS 5/22B-115)
7		Sec. 22B-115. Board of Trustees of the Fund.
8		(a) No later than one month after the effective date of
9		this amendatory Act of the 101st General Assembly or as soon
10		thereafter as may be practicable, the Governor shall appoint,
11		by and with the advice and consent of the Senate, a transition
12		board of trustees consisting of 9 members as follows:
13		(1) three members representing municipalities who are
14		mayors, presidents, chief executive officers, chief
15		financial officers, or other officers, executives, or
16		department heads of municipalities and appointed from
17		among candidates recommended by the Illinois Municipal
18		League;
19		(2) three members representing participants and who
20		are participants, 2 of whom shall be appointed from among
21		candidates recommended by a statewide fraternal
22		organization representing more than 20,000 active and
23		retired police officers in the State of Illinois, and one

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1		of whom shall be appointed from among candidates
2		recommended by a benevolent association representing sworn
3		police officers in the State of Illinois;
4		(3) two members representing beneficiaries and who are
5		beneficiaries, one of whom shall be appointed from among
6		candidates recommended by a statewide fraternal
7		organization representing more than 20,000 active and
8		retired police officers in the State of Illinois, and one
9		of whom shall be appointed from among candidates
10		recommended by a benevolent association representing sworn
11		police officers in the State of Illinois; and
12		(4) one member who is a representative of the Illinois
13		Municipal League.
14		The transition board members shall serve until the initial
15		permanent board members are elected and qualified.
16		The transition board of trustees shall select the
17		chairperson of the transition board of trustees from among the
18		trustees for the duration of the transition board's tenure.
19		(b) The permanent board of trustees shall consist of 9
20		members as follows:
21		(1) Three members who are mayors, presidents, chief
22		executive officers, chief financial officers, or other
23		officers, executives, or department heads of
24		municipalities that have participating pension funds and
25		are elected by the mayors and presidents of municipalities
26		that have participating pension funds.

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1		(2) Three members who are participants of
2		participating pension funds and are elected by the
3		participants of participating pension funds.
4		(3) Two members who are beneficiaries of participating
5		pension funds and are elected by the beneficiaries of
6		participating pension funds.
7		(4) One member recommended by the Illinois Municipal
8		League who shall be appointed by the Governor with the
9		advice and consent of the Senate.
10		The permanent board of trustees shall select the
11		chairperson of the permanent board of trustees from among the
12		trustees for a term of 2 years. The holder of the office of
13		chairperson shall alternate between a person elected or
14		appointed under item (1) or (4) of this subsection (b) and a
15		person elected under item (2) or (3) of this subsection (b).
16		(c) Each trustee shall qualify by taking an oath of office
17		before the Secretary of State or the legal counsel of the fund
18		stating that he or she will diligently and honestly administer
19		the affairs of the board and will not violate or knowingly
20		permit the violation of any provision of this Article.
21		(d) Trustees shall receive no salary for service on the
22		board but shall be reimbursed for travel expenses incurred
23		while on business for the board according to Article 1 of this
24		Code and rules adopted by the board the standards in effect for
25		members of the Commission on Government Forecasting and
26		Accountability.

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1		A municipality employing a police officer who is an
2		elected or appointed trustee of the board must allow
3		reasonable time off with compensation for the police officer
4		to conduct official business related to his or her position on
5		the board, including time for travel. The board shall notify
6		the municipality in advance of the dates, times, and locations
7		of this official business. The Fund shall timely reimburse the
8		municipality for the reasonable costs incurred that are due to
9		the police officer's absence.
10		(e) No trustee shall have any interest in any brokerage
11		fee, commission, or other profit or gain arising out of any
12		investment directed by the board. This subsection does not
13		preclude ownership by any member of any minority interest in
14		any common stock or any corporate obligation in which an
15		investment is directed by the board.
16		(f) Notwithstanding any provision or interpretation of law
17		to the contrary, any member of the transition board may also be
18		elected or appointed as a member of the permanent board.
19		Notwithstanding any provision or interpretation of law to
20		the contrary, any trustee of a fund established under Article
21		3 of this Code may also be appointed as a member of the
22		transition board or elected or appointed as a member of the
23		permanent board.
24		The restriction in Section 3.1 of the Lobbyist
25		Registration Act shall not apply to a member of the transition
26		board appointed pursuant to item (4) of subsection (a) or to a

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1		member of the permanent board appointed pursuant to item (4)
2		of subsection (b).
3		(Source: P.A. 101-610, eff. 1-1-20.)
4		(40 ILCS 5/22B-116)
5		Sec. 22B-116. Conduct and administration of elections;
6		terms of office.
7		(a) For the election of the permanent trustees, the
8		transition board shall administer the initial elections and
9		the permanent board shall administer all subsequent elections.
10		Each board shall develop and implement such procedures as it
11		determines to be appropriate for the conduct of such
12		elections. For the purposes of obtaining information necessary
13		to conduct elections under this Section, participating pension
14		funds shall cooperate with the Fund.
15		(b) All nominations for election shall be by petition.
16		Each petition for a trustee shall be executed as follows:
17		(1) for trustees to be elected by the mayors and
18		presidents of municipalities that have participating
19		pension funds, by at least 20 such mayors and presidents;
20		(2) for trustees to be elected by participants, by at
21		least 400 participants; and
22		(3) for trustees to be elected by beneficiaries, by at
23		least 100 beneficiaries.
24		(c) A separate ballot shall be used for each class of
25		trustee. The board shall prepare and send ballots and ballot

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1		envelopes to the participants and beneficiaries eligible to
2		vote in accordance with rules adopted by the board. The
3		ballots shall contain the names of all candidates in
4		alphabetical order. The ballot envelope shall have on the
5		outside a form of certificate stating that the person voting
6		the ballot is a participant or beneficiary entitled to vote.
7		Participants and beneficiaries, upon receipt of the
8		ballot, shall vote the ballot and place it in the ballot
9		envelope, seal the envelope, execute the certificate thereon,
10		and return the ballot to the Fund.
11		The board shall set a final date for ballot return, and
12		ballots received prior to that date in a ballot envelope with a
13		properly executed certificate and properly voted shall be
14		valid ballots.
15		The board shall set a day for counting the ballots and name
16		judges and clerks of election to conduct the count of ballots
17		and shall make any rules necessary for the conduct of the
18		count.
19		The candidate or candidates receiving the highest number
20		of votes for each class of trustee shall be elected. In the
21		case of a tie vote, the winner shall be determined in
22		accordance with procedures developed by the Department of
23		Insurance.
24		In lieu of conducting elections via mail balloting as
25		described in this Section, the board may instead adopt rules
26		to provide for elections to be carried out solely via Internet

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1		balloting or phone balloting. Nothing in this Section
2		prohibits the Fund from contracting with a third party to
3		administer the election in accordance with this Section.
4		(d) At any election, voting shall be as follows:
5		(1) Each person authorized to vote for an elected
6		trustee may cast one vote for each related position for
7		which such person is entitled to vote and may cast such
8		vote for any candidate or candidates on the ballot for
9		such trustee position.
10		(2) If only one candidate for each position is
11		properly nominated in petitions received, that candidate
12		shall be deemed the winner and no election under this
13		Section shall be required.
14		(3) The results shall be entered in the minutes of the
15		first meeting of the board following the tally of votes.
16		(e) The initial election for permanent trustees shall be
17		held and the permanent board shall be seated no later than 12
18		months after the effective date of this amendatory Act of the
19		101st General Assembly. Each subsequent election shall be held
20		no later than 30 days prior to the end of the term of the
21		incumbent trustees.
22		(f) The elected trustees shall each serve for terms of 4
23		years commencing on the first business day of the first month
24		after election; except that the terms of office of the
25		initially elected trustees shall be as follows:
26		(1) one trustee elected pursuant to item (1) of

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1		subsection (b) of Section 22B-115 shall serve for a term
2		of 2 years and 2 trustees elected pursuant to item (1) of
3		subsection (b) of Section 22B-115 shall serve for a term
4		of 4 years;
5		(2) two trustees elected pursuant to item (2) of
6		subsection (b) of Section 22B-115 shall serve for a term
7		of 2 years and one trustee elected pursuant to item (2) of
8		subsection (b) of Section 22B-115 shall serve for a term
9		of 4 years; and
10		(3) one trustee elected pursuant to item (3) of
11		subsection (b) of Section 22B-115 shall serve for a term
12		of 2 years and one trustee elected pursuant to item (3) of
13		subsection (b) of Section 22B-115 shall serve for a term
14		of 4 years.
15		(g) The trustee appointed pursuant to item (4) of
16		subsection (b) of Section 22B-115 shall serve for a term of 2
17		years commencing on the first business day of the first month
18		after the election of the elected trustees.
19		(h) A member of the board who was elected pursuant to item
20		(1) of subsection (b) of Section 22B-115 who ceases to serve as
21		a mayor, president, chief executive officer, chief financial
22		officer, or other officer, executive, or department head of a
23		municipality that has a participating pension fund shall not
24		be eligible to serve as a member of the board and his or her
25		position shall be deemed vacant. A member of the board who was
26		elected by the participants of participating pension funds who

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1		ceases to be a participant may serve the remainder of his or
2		her elected term.
3		For a vacancy of a trustee under item (1) of subsection (b)
4		of Section 22B-115, the vacancy shall be filled by appointment
5		by the board for the unexpired term from a list of candidates
6		recommended by the trustees under item (1) of subsection (b)
7		of Section 22B-115. The list of candidates shall be compiled
8		and presented to the board by the executive director of the
9		Fund.
10		For a vacancy of a trustee under item (2) of subsection (b)
11		of Section 22B-115, the vacancy shall be filled by appointment
12		by the board for the unexpired term from a list of candidates
13		recommended by the trustees under item (2) of subsection (b)
14		of Section 22B-115. The list of candidates shall be compiled
15		and presented to the board by the executive director of the
16		Fund.
17		For a vacancy of a trustee under item (3) of subsection (b)
18		of Section 22B-115, the vacancy shall be filled by appointment
19		by the board for the unexpired term from a list of candidates
20		recommended by the trustees under item (3) of subsection (b)
21		of Section 22B-115. The list of candidates shall be compiled
22		and presented to the board by the executive director of the
23		Fund.
24		A trustee appointed to fill the vacancy of an elected
25		trustee shall serve until a successor is elected. Special
26		elections to fill the remainder of an unexpired term vacated

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1		by an elected trustee shall be held concurrently with and in
2		the same manner as the next regular election for an elected
3		trustee position.
4		For a vacancy of an elected trustee occurring with an
5		unexpired term of 6 months or more, an election shall be
6		conducted for the vacancy in accordance with Section 22B-115
7		and this Section.
8		For a vacancy of an elected trustee occurring with an
9		unexpired term of less than 6 months, the vacancy shall be
10		filled by appointment by the board for the unexpired term as
11		follows: a vacancy of a member elected pursuant to item (1) of
12		subsection (b) of Section 22B-115 shall be filled by a mayor,
13		president, chief executive officer, chief financial officer,
14		or other officer, executive, or department head of a
15		municipality that has a participating pension fund; a vacancy
16		of a member elected pursuant to item (2) of subsection (b) of
17		Section 22B-115 shall be filled by a participant of a
18		participating pension fund; and a vacancy of a member elected
19		under item (3) of subsection (b) of Section 22B-115 shall be
20		filled by a beneficiary of a participating pension fund.
21		Vacancies among the appointed trustees shall be filled for
22		unexpired terms by appointment in like manner as for the
23		original appointments.
24		(Source: P.A. 101-610, eff. 1-1-20.)