Sen. Robert F. Martwick

Filed: 3/29/2023

 

 


 

 


 
10300SB1646sam004LRB103 27811 RPS 60172 a

1
AMENDMENT TO SENATE BILL 1646

2    AMENDMENT NO. ______. Amend Senate Bill 1646, AS AMENDED,
3with reference to page and line numbers of Senate Amendment
4No. 2, on page 44, immediately below line 21, by inserting the
5following:
 
6
"Article 11.

 
7    Section 11-5. The Illinois Pension Code is amended by
8changing 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
12this amendatory Act of the 101st General Assembly or as soon
13thereafter as may be practicable, the Governor shall appoint,
14by and with the advice and consent of the Senate, a transition
15board of trustees consisting of 9 members as follows:

 

 

10300SB1646sam004- 2 -LRB103 27811 RPS 60172 a

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
26permanent board members are elected and qualified.

 

 

10300SB1646sam004- 3 -LRB103 27811 RPS 60172 a

1    The transition board of trustees shall select the
2chairperson of the transition board of trustees from among the
3trustees for the duration of the transition board's tenure.
4    (b) The permanent board of trustees shall consist of 9
5members 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
22chairperson of the permanent board of trustees from among the
23trustees for a term of 2 years. The holder of the office of
24chairperson shall alternate between a person elected or
25appointed under item (1) or (4) of this subsection (b) and a
26person elected under item (2) or (3) of this subsection (b).

 

 

10300SB1646sam004- 4 -LRB103 27811 RPS 60172 a

1    (c) Each trustee shall qualify by taking an oath of office
2before the Secretary of State or the legal counsel of the fund
3stating that he or she will diligently and honestly administer
4the affairs of the board and will not violate or knowingly
5permit the violation of any provision of this Article.
6    (d) Trustees shall receive no salary for service on the
7board but shall be reimbursed for travel expenses incurred
8while on business for the board according to the standards in
9effect for members of the Commission on Government Forecasting
10and Accountability.
11    A municipality employing a police officer who is an
12elected or appointed trustee of the board must allow
13reasonable time off with compensation for the police officer
14to conduct official business related to his or her position on
15the board, including time for travel. The board shall notify
16the municipality in advance of the dates, times, and locations
17of this official business. The Fund shall timely reimburse the
18municipality for the reasonable costs incurred that are due to
19the police officer's absence.
20    (e) No trustee shall have any interest in any brokerage
21fee, commission, or other profit or gain arising out of any
22investment directed by the board. This subsection does not
23preclude ownership by any member of any minority interest in
24any common stock or any corporate obligation in which an
25investment is directed by the board.
26    (f) Notwithstanding any provision or interpretation of law

 

 

10300SB1646sam004- 5 -LRB103 27811 RPS 60172 a

1to the contrary, any member of the transition board may also be
2elected or appointed as a member of the permanent board.
3    Notwithstanding any provision or interpretation of law to
4the contrary, any trustee of a fund established under Article
53 of this Code may also be appointed as a member of the
6transition board or elected or appointed as a member of the
7permanent board.
8    The restriction in Section 3.1 of the Lobbyist
9Registration Act shall not apply to a member of the transition
10board appointed pursuant to item (4) of subsection (a) or to a
11member of the permanent board appointed pursuant to item (4)
12of subsection (b).
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;
16terms of office.
17    (a) For the election of the permanent trustees, the
18transition board shall administer the initial elections and
19the permanent board shall administer all subsequent elections.
20Each board shall develop and implement such procedures as it
21determines to be appropriate for the conduct of such
22elections. For the purposes of obtaining information necessary
23to conduct elections under this Section, participating pension
24funds shall cooperate with the Fund.
25    (b) All nominations for election shall be by petition.

 

 

10300SB1646sam004- 6 -LRB103 27811 RPS 60172 a

1Each 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
10trustee. The board shall prepare and send ballots and ballot
11envelopes to the participants and beneficiaries eligible to
12vote in accordance with rules adopted by the board. The
13ballots shall contain the names of all candidates in
14alphabetical order. The ballot envelope shall have on the
15outside a form of certificate stating that the person voting
16the ballot is a participant or beneficiary entitled to vote.
17    Participants and beneficiaries, upon receipt of the
18ballot, shall vote the ballot and place it in the ballot
19envelope, seal the envelope, execute the certificate thereon,
20and return the ballot to the Fund.
21    The board shall set a final date for ballot return, and
22ballots received prior to that date in a ballot envelope with a
23properly executed certificate and properly voted shall be
24valid ballots.
25    The board shall set a day for counting the ballots and name
26judges and clerks of election to conduct the count of ballots

 

 

10300SB1646sam004- 7 -LRB103 27811 RPS 60172 a

1and shall make any rules necessary for the conduct of the
2count.
3    The candidate or candidates receiving the highest number
4of votes for each class of trustee shall be elected. In the
5case of a tie vote, the winner shall be determined in
6accordance with procedures developed by the Department of
7Insurance.
8    In lieu of conducting elections via mail balloting as
9described in this Section, the board may instead adopt rules
10to provide for elections to be carried out solely via Internet
11balloting or phone balloting. Nothing in this Section
12prohibits the Fund from contracting with a third party to
13administer 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

 

 

10300SB1646sam004- 8 -LRB103 27811 RPS 60172 a

1held and the permanent board shall be seated no later than 12
2months after the effective date of this amendatory Act of the
3101st General Assembly. Each subsequent election shall be held
4no later than 30 days prior to the end of the term of the
5incumbent trustees.
6    (f) The elected trustees shall each serve for terms of 4
7years commencing on the first business day of the first month
8after election; except that the terms of office of the
9initially 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
26subsection (b) of Section 22B-115 shall serve for a term of 2

 

 

10300SB1646sam004- 9 -LRB103 27811 RPS 60172 a

1years commencing on the first business day of the first month
2after 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
5a mayor, president, chief executive officer, chief financial
6officer, or other officer, executive, or department head of a
7municipality that has a participating pension fund shall not
8be eligible to serve as a member of the board and his or her
9position shall be deemed vacant. A member of the board who was
10elected by the participants of participating pension funds who
11ceases to be a participant may serve the remainder of his or
12her elected term.
13    For a vacancy of a trustee under item (1) of subsection (b)
14of Section 22B-115, the vacancy shall be filled by appointment
15by the board for the unexpired term from a list of candidates
16recommended by the trustees under item (1) of subsection (b)
17of Section 22B-115. The list of candidates shall be compiled
18and presented to the board by the executive director of the
19Fund.
20    For a vacancy of a trustee under item (2) of subsection (b)
21of Section 22B-115, the vacancy shall be filled by appointment
22by the board for the unexpired term from a list of candidates
23recommended by the trustees under item (2) of subsection (b)
24of Section 22B-115. The list of candidates shall be compiled
25and presented to the board by the executive director of the
26Fund.

 

 

10300SB1646sam004- 10 -LRB103 27811 RPS 60172 a

1    For a vacancy of a trustee under item (3) of subsection (b)
2of Section 22B-115, the vacancy shall be filled by appointment
3by the board for the unexpired term from a list of candidates
4recommended by the trustees under item (3) of subsection (b)
5of Section 22B-115. The list of candidates shall be compiled
6and presented to the board by the executive director of the
7Fund.
8    For a vacancy of an elected trustee occurring with an
9unexpired term of 6 months or more, an election shall be
10conducted for the vacancy in accordance with Section 22B-115
11and this Section.
12    For a vacancy of an elected trustee occurring with an
13unexpired term of less than 6 months, the vacancy shall be
14filled by appointment by the board for the unexpired term as
15follows: a vacancy of a member elected pursuant to item (1) of
16subsection (b) of Section 22B-115 shall be filled by a mayor,
17president, chief executive officer, chief financial officer,
18or other officer, executive, or department head of a
19municipality that has a participating pension fund; a vacancy
20of a member elected pursuant to item (2) of subsection (b) of
21Section 22B-115 shall be filled by a participant of a
22participating pension fund; and a vacancy of a member elected
23under item (3) of subsection (b) of Section 22B-115 shall be
24filled by a beneficiary of a participating pension fund.
25    Vacancies among the appointed trustees shall be filled for
26unexpired terms by appointment in like manner as for the

 

 

10300SB1646sam004- 11 -LRB103 27811 RPS 60172 a

1original appointments.
2(Source: P.A. 101-610, eff. 1-1-20.)".