104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2826

 

Introduced 1/13/2026, by Sen. Chris Balkema

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/7-174  from Ch. 108 1/2, par. 7-174

    Amends the Illinois Municipal Retirement Fund (IMRF) Article of the Illinois Pension Code. Provides that no person who has earned creditable service through employment by the Fund shall be eligible to serve as a trustee.


LRB104 17390 RPS 30815 b

 

 

A BILL FOR

 

SB2826LRB104 17390 RPS 30815 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by
5changing Section 7-174 as follows:
 
6    (40 ILCS 5/7-174)  (from Ch. 108 1/2, par. 7-174)
7    Sec. 7-174. Board created.
8    (a) A board of 8 members shall constitute a board of
9trustees authorized to carry out the provisions of this
10Article. Each trustee shall be a participating employee of a
11participating municipality or participating instrumentality or
12an annuitant of the Fund and no person shall be eligible to
13become a trustee after January 1, 1979 who does not have the
14minimum service credit in this Fund to qualify for a pension.
15    Notwithstanding any other provision of this subsection, on
16and after the effective date of this amendatory Act of the
17104th General Assembly, no person who has earned creditable
18service through employment by the Fund shall be eligible to
19serve as a trustee.
20    (b) The board shall consist of representatives of various
21groups as follows:
22        1. 4 trustees shall be a chief executive officer,
23    chief finance officer, or other officer, executive or

 

 

SB2826- 2 -LRB104 17390 RPS 30815 b

1    department head of a participating municipality or
2    participating instrumentality, and each such trustee shall
3    be designated as an executive trustee.
4        2. 3 trustees shall be employees of a participating
5    municipality or participating instrumentality and each
6    such trustee shall be designated as an employee trustee. A
7    person who meets the criteria to be an executive trustee
8    may not serve as an employee trustee.
9        3. One trustee shall be an annuitant of the Fund, who
10    shall be designated the annuitant trustee.
11    (c) A person elected as a trustee shall qualify as a
12trustee, after declaration by the board that he has been duly
13elected, upon taking and subscribing to the constitutional
14oath of office and filing same in the office of the Fund.
15    (d) The term of office of each trustee shall begin upon
16January 1 of the year following the year in which he is elected
17and shall continue for a period of 5 years and until a
18successor has been elected and qualified, or until prior
19resignation, death, incapacity or disqualification.
20    (e) Any elected trustee (other than the annuitant trustee)
21shall be disqualified immediately upon termination of
22employment with all participating municipalities and
23instrumentalities thereof or upon any change in status which
24removes any such trustee from all employments within the group
25he represents. The annuitant trustee shall be disqualified
26upon termination of his or her annuity.

 

 

SB2826- 3 -LRB104 17390 RPS 30815 b

1    (e-5) Notwithstanding any other provision, an elected
2trustee shall not be considered disqualified due to
3termination of participation under subsection (e) if:
4        (1) he or she thereafter begins participation with a
5    different participating employer;
6        (2) there is no gap in service credit established
7    under this Article; and
8        (3) the trustee continues to meet all eligibility
9    requirements under subsection (b) for the same type of
10    trustee position.
11    (f) The trustees shall fill any vacancy in the board by
12appointment, for the period until the next election of
13trustees, or, if the remaining term is less than 2 years, for
14the remainder of the term, and until his successor has been
15elected and qualified.
16    (g) Trustees shall serve without compensation, but shall
17be reimbursed for any reasonable expenses incurred in
18attending meetings of the board and in performing duties on
19behalf of the Fund and for the amount of any earnings withheld
20by any employing municipality or participating instrumentality
21because of attendance at any board meeting.
22    (h) Each trustee shall be entitled to one vote on any and
23all actions before the board. At least 5 concurring votes
24shall be necessary for every decision or action by the board at
25any of its meetings. No decision or action shall become
26effective unless presented and so approved at a regular or

 

 

SB2826- 4 -LRB104 17390 RPS 30815 b

1duly called special meeting of the board.
2(Source: P.A. 102-479, eff. 8-20-21; 103-464, eff. 8-4-23.)