Public Act 103-0506

SB2100 Enrolled LRB103 28494 RPS 54875 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 22B-115 and 22B-116 as follows:

(40 ILCS 5/22B-115)

Sec. 22B-115. Board of Trustees of the Fund.

(a) 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 9 members as follows:

(1) three members representing municipalities who are

mayors, presidents, chief executive officers, chief

financial officers, or other officers, executives, or

department heads of municipalities and appointed from

among candidates recommended by the Illinois Municipal

League;

(2) three members representing participants and who

are participants, 2 of whom shall be appointed from among

candidates recommended by a statewide fraternal

organization representing more than 20,000 active and

retired police officers in the State of Illinois, and one

of whom shall be appointed from among candidates

recommended by a benevolent association representing sworn

police officers in the State of Illinois;

(3) two members representing beneficiaries and who are

beneficiaries, one of whom shall be appointed from among

candidates recommended by a statewide fraternal

organization representing more than 20,000 active and

retired police officers in the State of Illinois, and one

of whom shall be appointed from among candidates

recommended by a benevolent association representing sworn

police officers in the State of Illinois; and

(4) one member who is a representative of the Illinois

Municipal League.

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 9

members as follows:

(1) Three members who are mayors, presidents, chief

executive officers, chief financial officers, or other

officers, executives, or department heads of

municipalities that have participating pension funds and

are elected by the mayors and presidents of municipalities

that have participating pension funds.

(2) Three members who are participants of

participating pension funds and are elected by the

participants of participating pension funds.

(3) Two members who are beneficiaries of participating

pension funds and are 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.

The permanent board of trustees shall select the

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 under item (2) or (3) of this subsection (b).

(c) Each trustee shall qualify by taking an oath of office

before the Secretary of State or the legal counsel of the fund

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 Article 1 of this

Code and rules adopted by the board the standards in effect for

members of the Commission on Government Forecasting and

Accountability.

A municipality employing a police officer who is an

elected or appointed trustee of the board must allow

reasonable time off with compensation for the police officer

to conduct official business related to his or her position on

the board, including time for travel. The board shall notify

the municipality in advance of the dates, times, and locations

of this official business. The Fund shall timely reimburse the

municipality for the reasonable costs incurred that are due to

the police officer's absence.

(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

3 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 item (4) of subsection (a) or to a

member of the permanent board appointed pursuant to item (4)

of subsection (b).

(Source: P.A. 101-610, eff. 1-1-20.)

(40 ILCS 5/22B-116)

Sec. 22B-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 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 that have participating

pension funds, by at least 20 such mayors and presidents;

(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

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. 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 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 22B-115 shall serve for a term

of 2 years and 2 trustees elected pursuant to item (1) of

subsection (b) of Section 22B-115 shall serve for a term

of 4 years;

(2) two trustees elected pursuant to item (2) of

subsection (b) of Section 22B-115 shall serve for a term

of 2 years and one trustee elected pursuant to item (2) of

subsection (b) of Section 22B-115 shall serve for a term

of 4 years; and

(3) one trustee elected pursuant to item (3) of

subsection (b) of Section 22B-115 shall serve for a term

of 2 years and one trustee elected pursuant to item (3) of

subsection (b) of Section 22B-115 shall serve for a term

of 4 years.

(g) The trustee appointed pursuant to item (4) of

subsection (b) of Section 22B-115 shall serve for a term of 2

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 22B-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 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 a trustee under item (1) of subsection (b)

of Section 22B-115, the vacancy shall be filled by appointment

by the board for the unexpired term from a list of candidates

recommended by the trustees under item (1) of subsection (b)

of Section 22B-115. The list of candidates shall be compiled

and presented to the board by the executive director of the

Fund.

For a vacancy of a trustee under item (2) of subsection (b)

of Section 22B-115, the vacancy shall be filled by appointment

by the board for the unexpired term from a list of candidates

recommended by the trustees under item (2) of subsection (b)

of Section 22B-115. The list of candidates shall be compiled

and presented to the board by the executive director of the

Fund.

For a vacancy of a trustee under item (3) of subsection (b)

of Section 22B-115, the vacancy shall be filled by appointment

by the board for the unexpired term from a list of candidates

recommended by the trustees under item (3) of subsection (b)

of Section 22B-115. The list of candidates shall be compiled

and presented to the board by the executive director of the

Fund.

A trustee appointed to fill the vacancy of an elected

trustee shall serve until a successor is elected. 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.

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 in accordance with Section 22B-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 22B-115 shall be filled by a mayor,

president, chief executive officer, chief financial officer,

or other officer, executive, or department head of a

municipality that has a participating pension fund; a vacancy

of a member elected pursuant to item (2) of subsection (b) of

Section 22B-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 22B-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.)