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Sen. Robert F. Martwick
Filed: 3/29/2023
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1 | | AMENDMENT TO SENATE BILL 1646
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2 | | AMENDMENT NO. ______. Amend Senate Bill 1646, AS AMENDED, |
3 | | with reference to page and line numbers of Senate Amendment |
4 | | No. 2, on page 44, immediately below line 21, by inserting the |
5 | | following:
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6 | | "Article 11. |
7 | | Section 11-5. The Illinois Pension Code is amended by |
8 | | changing Sections 22B-115 and 22B-116 as follows: |
9 | | (40 ILCS 5/22B-115) |
10 | | Sec. 22B-115. Board of Trustees of the Fund. |
11 | | (a) No later than one month after the effective date of |
12 | | this amendatory Act of the 101st General Assembly or as soon |
13 | | thereafter as may be practicable, the Governor shall appoint, |
14 | | by and with the advice and consent of the Senate, a transition |
15 | | board of trustees consisting of 9 members as follows: |
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1 | | (1) three members representing municipalities who are |
2 | | mayors, presidents, chief executive officers, chief |
3 | | financial officers, or other officers, executives, or |
4 | | department heads of municipalities and appointed from |
5 | | among candidates recommended by the Illinois Municipal |
6 | | League; |
7 | | (2) three members representing participants and who |
8 | | are participants, 2 of whom shall be appointed from among |
9 | | candidates recommended by a statewide fraternal |
10 | | organization representing more than 20,000 active and |
11 | | retired police officers in the State of Illinois, and one |
12 | | of whom shall be appointed from among candidates |
13 | | recommended by a benevolent association representing sworn |
14 | | police officers in the State of Illinois; |
15 | | (3) two members representing beneficiaries and who are |
16 | | beneficiaries, one of whom shall be appointed from among |
17 | | candidates recommended by a statewide fraternal |
18 | | organization representing more than 20,000 active and |
19 | | retired police officers in the State of Illinois, and one |
20 | | of whom shall be appointed from among candidates |
21 | | recommended by a benevolent association representing sworn |
22 | | police officers in the State of Illinois; and |
23 | | (4) one member who is a representative of the Illinois |
24 | | Municipal League. |
25 | | The transition board members shall serve until the initial |
26 | | permanent board members are elected and qualified. |
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1 | | The transition board of trustees shall select the |
2 | | chairperson of the transition board of trustees from among the |
3 | | trustees for the duration of the transition board's tenure. |
4 | | (b) The permanent board of trustees shall consist of 9 |
5 | | members as follows: |
6 | | (1) Three members who are mayors, presidents, chief |
7 | | executive officers, chief financial officers, or other |
8 | | officers, executives, or department heads of |
9 | | municipalities that have participating pension funds and |
10 | | are elected by the mayors and presidents of municipalities |
11 | | that have participating pension funds. |
12 | | (2) Three members who are participants of |
13 | | participating pension funds and are elected by the |
14 | | participants of participating pension funds. |
15 | | (3) Two members who are beneficiaries of participating |
16 | | pension funds and are elected by the beneficiaries of |
17 | | participating pension funds. |
18 | | (4) One member recommended by the Illinois Municipal |
19 | | League who shall be appointed by the Governor with the |
20 | | advice and consent of the Senate. |
21 | | The permanent board of trustees shall select the |
22 | | chairperson of the permanent board of trustees from among the |
23 | | trustees for a term of 2 years. The holder of the office of |
24 | | chairperson shall alternate between a person elected or |
25 | | appointed under item (1) or (4) of this subsection (b) and a |
26 | | person elected under item (2) or (3) of this subsection (b). |
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1 | | (c) Each trustee shall qualify by taking an oath of office |
2 | | before the Secretary of State or the legal counsel of the fund |
3 | | stating that he or she will diligently and honestly administer |
4 | | the affairs of the board and will not violate or knowingly |
5 | | permit the violation of any provision of this Article. |
6 | | (d) Trustees shall receive no salary for service on the |
7 | | board but shall be reimbursed for travel expenses incurred |
8 | | while on business for the board according to the standards in |
9 | | effect for members of the Commission on Government Forecasting |
10 | | and Accountability. |
11 | | A municipality employing a police officer who is an |
12 | | elected or appointed trustee of the board must allow |
13 | | reasonable time off with compensation for the police officer |
14 | | to conduct official business related to his or her position on |
15 | | the board, including time for travel. The board shall notify |
16 | | the municipality in advance of the dates, times, and locations |
17 | | of this official business. The Fund shall timely reimburse the |
18 | | municipality for the reasonable costs incurred that are due to |
19 | | the police officer's absence. |
20 | | (e) No trustee shall have any interest in any brokerage |
21 | | fee, commission, or other profit or gain arising out of any |
22 | | investment directed by the board. This subsection does not |
23 | | preclude ownership by any member of any minority interest in |
24 | | any common stock or any corporate obligation in which an |
25 | | investment is directed by the board. |
26 | | (f) Notwithstanding any provision or interpretation of law |
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1 | | to the contrary, any member of the transition board may also be |
2 | | elected or appointed as a member of the permanent board. |
3 | | Notwithstanding any provision or interpretation of law to |
4 | | the contrary, any trustee of a fund established under Article |
5 | | 3 of this Code may also be appointed as a member of the |
6 | | transition board or elected or appointed as a member of the |
7 | | permanent board. |
8 | | The restriction in Section 3.1 of the Lobbyist |
9 | | Registration Act shall not apply to a member of the transition |
10 | | board appointed pursuant to item (4) of subsection (a) or to a |
11 | | member of the permanent board appointed pursuant to item (4) |
12 | | of subsection (b).
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13 | | (Source: P.A. 101-610, eff. 1-1-20.) |
14 | | (40 ILCS 5/22B-116) |
15 | | Sec. 22B-116. Conduct and administration of elections; |
16 | | terms of office. |
17 | | (a) For the election of the permanent trustees, the |
18 | | transition board shall administer the initial elections and |
19 | | the permanent board shall administer all subsequent elections. |
20 | | Each board shall develop and implement such procedures as it |
21 | | determines to be appropriate for the conduct of such |
22 | | elections. For the purposes of obtaining information necessary |
23 | | to conduct elections under this Section, participating pension |
24 | | funds shall cooperate with the Fund. |
25 | | (b) All nominations for election shall be by petition. |
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1 | | Each petition for a trustee shall be executed as follows: |
2 | | (1) for trustees to be elected by the mayors and |
3 | | presidents of municipalities that have participating |
4 | | pension funds, by at least 20 such mayors and presidents; |
5 | | (2) for trustees to be elected by participants, by at |
6 | | least 400 participants; and |
7 | | (3) for trustees to be elected by beneficiaries, by at |
8 | | least 100 beneficiaries. |
9 | | (c) A separate ballot shall be used for each class of |
10 | | trustee. The board shall prepare and send ballots and ballot |
11 | | envelopes to the participants and beneficiaries eligible to |
12 | | vote in accordance with rules adopted by the board. The |
13 | | ballots shall contain the names of all candidates in |
14 | | alphabetical order. The ballot envelope shall have on the |
15 | | outside a form of certificate stating that the person voting |
16 | | the ballot is a participant or beneficiary entitled to vote. |
17 | | Participants and beneficiaries, upon receipt of the |
18 | | ballot, shall vote the ballot and place it in the ballot |
19 | | envelope, seal the envelope, execute the certificate thereon, |
20 | | and return the ballot to the Fund. |
21 | | The board shall set a final date for ballot return, and |
22 | | ballots received prior to that date in a ballot envelope with a |
23 | | properly executed certificate and properly voted shall be |
24 | | valid ballots. |
25 | | The board shall set a day for counting the ballots and name |
26 | | judges and clerks of election to conduct the count of ballots |
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1 | | and shall make any rules necessary for the conduct of the |
2 | | count. |
3 | | The candidate or candidates receiving the highest number |
4 | | of votes for each class of trustee shall be elected. In the |
5 | | case of a tie vote, the winner shall be determined in |
6 | | accordance with procedures developed by the Department of |
7 | | Insurance. |
8 | | In lieu of conducting elections via mail balloting as |
9 | | described in this Section, the board may instead adopt rules |
10 | | to provide for elections to be carried out solely via Internet |
11 | | balloting or phone balloting. Nothing in this Section |
12 | | prohibits the Fund from contracting with a third party to |
13 | | administer the election in accordance with this Section. |
14 | | (d) At any election, voting shall be as follows: |
15 | | (1) Each person authorized to vote for an elected |
16 | | trustee may cast one vote for each related position for |
17 | | which such person is entitled to vote and may cast such |
18 | | vote for any candidate or candidates on the ballot for |
19 | | such trustee position. |
20 | | (2) If only one candidate for each position is |
21 | | properly nominated in petitions received, that candidate |
22 | | shall be deemed the winner and no election under this |
23 | | Section shall be required. |
24 | | (3) The results shall be entered in the minutes of the |
25 | | first meeting of the board following the tally of votes. |
26 | | (e) The initial election for permanent trustees shall be |
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1 | | held and the permanent board shall be seated no later than 12 |
2 | | months after the effective date of this amendatory Act of the |
3 | | 101st General Assembly. Each subsequent election shall be held |
4 | | no later than 30 days prior to the end of the term of the |
5 | | incumbent trustees. |
6 | | (f) The elected trustees shall each serve for terms of 4 |
7 | | years commencing on the first business day of the first month |
8 | | after election; except that the terms of office of the |
9 | | initially elected trustees shall be as follows: |
10 | | (1) one trustee elected pursuant to item (1) of |
11 | | subsection (b) of Section 22B-115 shall serve for a term |
12 | | of 2 years and 2 trustees elected pursuant to item (1) of |
13 | | subsection (b) of Section 22B-115 shall serve for a term |
14 | | of 4 years; |
15 | | (2) two trustees elected pursuant to item (2) of |
16 | | subsection (b) of Section 22B-115 shall serve for a term |
17 | | of 2 years and one trustee elected pursuant to item (2) of |
18 | | subsection (b) of Section 22B-115 shall serve for a term |
19 | | of 4 years; and |
20 | | (3) one trustee elected pursuant to item (3) of |
21 | | subsection (b) of Section 22B-115 shall serve for a term |
22 | | of 2 years and one trustee elected pursuant to item (3) of |
23 | | subsection (b) of Section 22B-115 shall serve for a term |
24 | | of 4 years. |
25 | | (g) The trustee appointed pursuant to item (4) of |
26 | | subsection (b) of Section 22B-115 shall serve for a term of 2 |
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1 | | years commencing on the first business day of the first month |
2 | | after the election of the elected trustees. |
3 | | (h) A member of the board who was elected pursuant to item |
4 | | (1) of subsection (b) of Section 22B-115 who ceases to serve as |
5 | | a mayor, president, chief executive officer, chief financial |
6 | | officer, or other officer, executive, or department head of a |
7 | | municipality that has a participating pension fund shall not |
8 | | be eligible to serve as a member of the board and his or her |
9 | | position shall be deemed vacant. A member of the board who was |
10 | | elected by the participants of participating pension funds who |
11 | | ceases to be a participant may serve the remainder of his or |
12 | | her elected term. |
13 | | For a vacancy of a trustee under item (1) of subsection (b) |
14 | | of Section 22B-115, the vacancy shall be filled by appointment |
15 | | by the board for the unexpired term from a list of candidates |
16 | | recommended by the trustees under item (1) of subsection (b) |
17 | | of Section 22B-115. The list of candidates shall be compiled |
18 | | and presented to the board by the executive director of the |
19 | | Fund. |
20 | | For a vacancy of a trustee under item (2) of subsection (b) |
21 | | of Section 22B-115, the vacancy shall be filled by appointment |
22 | | by the board for the unexpired term from a list of candidates |
23 | | recommended by the trustees under item (2) of subsection (b) |
24 | | of Section 22B-115. The list of candidates shall be compiled |
25 | | and presented to the board by the executive director of the |
26 | | Fund. |
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1 | | For a vacancy of a trustee under item (3) of subsection (b) |
2 | | of Section 22B-115, the vacancy shall be filled by appointment |
3 | | by the board for the unexpired term from a list of candidates |
4 | | recommended by the trustees under item (3) of subsection (b) |
5 | | of Section 22B-115. The list of candidates shall be compiled |
6 | | and presented to the board by the executive director of the |
7 | | Fund. |
8 | | For a vacancy of an elected trustee occurring with an |
9 | | unexpired term of 6 months or more, an election shall be |
10 | | conducted for the vacancy in accordance with Section 22B-115 |
11 | | and this Section. |
12 | | For a vacancy of an elected trustee occurring with an |
13 | | unexpired term of less than 6 months, the vacancy shall be |
14 | | filled by appointment by the board for the unexpired term as |
15 | | follows: a vacancy of a member elected pursuant to item (1) of |
16 | | subsection (b) of Section 22B-115 shall be filled by a mayor, |
17 | | president, chief executive officer, chief financial officer, |
18 | | or other officer, executive, or department head of a |
19 | | municipality that has a participating pension fund; a vacancy |
20 | | of a member elected pursuant to item (2) of subsection (b) of |
21 | | Section 22B-115 shall be filled by a participant of a |
22 | | participating pension fund; and a vacancy of a member elected |
23 | | under item (3) of subsection (b) of Section 22B-115 shall be |
24 | | filled by a beneficiary of a participating pension fund. |
25 | | Vacancies among the appointed trustees shall be filled for |
26 | | unexpired terms by appointment in like manner as for the |