Bill Text: IL SB2101 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-31 - Rule 3-9(a) / Re-referred to Assignments [SB2101 Detail]

Download: Illinois-2023-SB2101-Introduced.html

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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
SB2101 LRB103 30747 RPS 57226 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, 22C-119, and 22C-123 as
follows:
(40 ILCS 5/22C-115)
Sec. 22C-115. Board of Trustees of the Fund.
(a) No later than February 1, 2020 (one month after the
effective date of Public Act 101-610) 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 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

SB2101 - 2 - LRB103 30747 RPS 57226 b
representing firefighters employed by at least 85
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;
(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.
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 comprised as follows:
(1) Three 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

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participating pension funds and are elected by the mayors
and presidents of municipalities or fire protection
districts that have participating pension funds.
(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.
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 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 or the Board's appointed legal

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counsel 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.
(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

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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; 102-558, eff. 8-20-21.)
(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 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.

SB2101 - 6 - LRB103 30747 RPS 57226 b
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
voters 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.
Eligible voters 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.

SB2101 - 7 - LRB103 30747 RPS 57226 b
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

SB2101 - 8 - LRB103 30747 RPS 57226 b
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
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

SB2101 - 9 - LRB103 30747 RPS 57226 b
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
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

SB2101 - 10 - LRB103 30747 RPS 57226 b
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. 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.
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-119)
Sec. 22C-119. Adoption of rules. The board shall adopt
such rules (not inconsistent with this Code) as in its
judgment are desirable to implement and properly administer
this Article. Such rules shall specifically provide for the
following: (1) the implementation of the transition process
described in Section 22C-120; (2) the process by which the
participating pension funds may request transfer of funds; (3)
the process for the transfer in, receipt for, and investment
of pension assets received by the Fund after the transition
period from the participating pension funds; (4) the process

SB2101 - 11 - LRB103 30747 RPS 57226 b
by which contributions from municipalities and fire protection
districts for the benefit of the participating pension funds
may, but are not required to, be directly transferred to the
Fund; and (5) compensation and benefits for its employees. A
copy of the rules adopted by the Fund shall be posted on the
Fund's website filed with the Secretary of State and the
Department of Insurance. The adoption and effectiveness of
such rules shall not be subject to Article 5 of the Illinois
Administrative Procedure Act.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/22C-123)
Sec. 22C-123. Custodian. The pension fund assets
transferred to or otherwise acquired by the Fund shall be
placed in the custody of a custodian who shall provide
adequate safe deposit facilities for those assets and hold all
such securities, funds, and other assets subject to the order
of the Fund.
Each custodian shall furnish a corporate surety bond of
such amount as the board designates, which bond shall
indemnify the Fund, the board, and the officers and employees
of the Fund against any loss that may result from any action or
failure to act by the custodian or any of the custodian's
agents, or provide insurance coverages of such type and limits
as the board designates. All charges incidental to the
procuring and giving of any bond shall be paid by the board and

SB2101 - 12 - LRB103 30747 RPS 57226 b
each bond shall be in the custody of the board.
(Source: P.A. 101-610, eff. 1-1-20.)