HB3400 95TH GENERAL ASSEMBLY

LRB095 09751 AMC 31918 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB3400

Introduced 2/26/2007, by Rep. Elaine Nekritz

SYNOPSIS AS INTRODUCED:

See Index

Amends the Illinois Pension Code. Makes changes concerning the composition of the boards of trustees of the retirement systems and pension funds. Provides for appointment to the boards of trustees of members who do not hold any other public office, who are not participants in the fund, and who have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. Requires that all members of the boards of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

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 2-127, 2-129, 3-128, 4-121, 5-178, 6-174, 7-174, 8-192, 9-185, 11-181, 12-156, 13-701, 14-134, 15-159, 16-163, 17-137, and 18-135 as follows:

(40 ILCS 5/2-127) (from Ch. 108 1/2, par. 2-127)

Sec. 2-127. Board created. The system shall be administered by a board of trustees of 14 7 members as follows: the President of the Senate, ex officio, or his or her designee; the State Treasurer, ex officio, or his or her designee; the State Comptroller, ex officio, or his or her designee; the Lieutenant Governor, ex officio, or his or her designee; the Attorney General, ex officio, or his or her designee; 2 members of the Senate appointed by the President; 3 members of the House of Representatives appointed by the Speaker; and one person elected from the member annuitants under rules prescribed by the board; and 3 persons appointed by the Governor who do not hold any other State office and who are not participants. All 3 of the Governor's appointees must have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. Only participants are eligible to serve as the 2 board members appointed by the President of the Senate, the 3 board members appointed by the Speaker of the House of Representatives, and the one board member elected from the member annuitants. Not more than two members of the House of Representatives, and not more than one member of the Senate so appointed shall be of the same political party. Board members appointed by the President of the Senate and the Speaker of the House Appointed board members shall serve for 2-year terms. If the office of President of the Senate or Speaker of the House is vacant or its incumbent is not a participant, the position of trustee otherwise occupied by such officers shall be deemed vacant and be filled by appointment by the Governor with a member of the Senate or the House, as the case may be. This appointment shall be of the same political party as the vacated position.

Elections for the annuitant member shall be held in January of 1993 and every fourth year thereafter. Nominations and elections shall be conducted in accordance with such procedures as the Board may prescribe. In the event that only one eligible person is nominated, the Board may declare the nominee elected at the close of the nomination period, and need not conduct an election. The annuitant member elected in 1989 shall serve for a term of 4 years beginning February 1, 1989; thereafter, an annuitant member shall serve for a period of 4 years from the February 1st immediately following the date of election, and until a successor is elected and qualified.

The Governor shall appoint 3 persons to the board in January 2008 and the Governor's appointees shall serve for a term of 4 years.

Every person designated to serve as a trustee shall take an oath of office and shall thereupon qualify as a trustee. The oath shall state that the person will diligently and honestly administer the affairs of the system, and will not knowingly violate or wilfully permit the violation of any of the provisions of this Article.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 86-273; 86-1488.)

(40 ILCS 5/2-129) (from Ch. 108 1/2, par. 2-129)

Sec. 2-129. Board voting. Each trustee is entitled to one vote on any action of the board. Not less than 8 4 concurring votes shall be necessary for action by the board at any meeting. No decision or action shall be effective unless so approved by the board.

(Source: P.A. 83-1440.)

(40 ILCS 5/3-128) (from Ch. 108 1/2, par. 3-128)

Sec. 3-128. Board created. A board of 7 5 members shall constitute a board of trustees to administer the pension fund and to designate the beneficiaries thereof. The board shall be known as the "Board of Trustees of the Police Pension Fund" of the municipality.

Four Two members of the board shall be appointed by the mayor or president of the board of trustees of the municipality involved. Two of these appointees shall not hold any other public office, shall not be participants in the fund, and shall also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. The 5th 3rd and 6th 4th members of the board shall be elected from the active participants of the pension fund by such active participants. The 7th 5th member shall be elected by and from the beneficiaries.

One of the members appointed by the mayor or president of the board of trustees shall serve for one year beginning on the 2nd Tuesday in May after the municipality comes under this Article. A second The other appointed member shall serve for 2 years beginning on the same date. Their successors shall serve for 2 years each or until their successors are appointed and qualified.

The other 2 members appointed by the mayor, who do not hold any other public office and who have the requisite financial background, shall serve for 2 years beginning on the 2nd Tuesday of May of 2008 or after the municipality comes under this Article.

The election for board members shall be held biennially on the 3rd Monday in April, at such place or places in the municipality and under the Australian ballot system and such other regulations as shall be prescribed by the appointed members of the board.

The active pension fund participants shall be entitled to vote only for the active participant members of the board. All beneficiaries of legal age may vote only for the member chosen from among the beneficiaries. No person shall be entitled to cast more than one ballot at such election. The term of elected members shall be 2 years, beginning on the 2nd Tuesday of the first May after the election.

Upon the death, resignation or inability to act of any elected board member, his or her successor shall be elected for the unexpired term at a special election, to be called by the board and conducted in the same manner as the regular biennial election.

Members of the board shall neither receive nor have any right to receive any salary from the pension fund for services performed as trustees in that office.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 83-1440.)

(40 ILCS 5/4-121) (from Ch. 108 1/2, par. 4-121)

Sec. 4-121. Board created. There is created in each municipality or fire protection district a board of trustees to be known as the "Board of Trustees of the Firefighters' Pension Fund". The membership of the board for each municipality shall be, respectively, as follows: in cities, the treasurer, clerk, marshall or chief officer of the fire department, and the comptroller if there is one, or if not, the mayor; in each township, village or incorporated town, the president of the municipality's board of trustees, the village or town clerk, village or town attorney, village or town treasurer, and the chief officer of the fire department; and in each fire protection district, the president and other 2 members of its board of trustees and the marshall or chief of its fire department or service, as the case may be; and in all the municipalities above designated 3 additional persons chosen from their active firefighters and one other person who has retired under the "Firemen's Pension Fund Act of 1919", or this Article. Notwithstanding any provision of this Section to the contrary, the term of office of each member of a board established on or before the 3rd Monday in April, 2006 shall terminate on the 3rd Monday in April, 2006, but all incumbent members shall continue to exercise all of the powers and be subject to all of the duties of a member of the board until all the new members of the board take office.

Beginning on the 3rd Monday in April, 2006, the board for each municipality or fire protection district shall consist of 5 members. Two members of the board shall be appointed by the mayor or president of the board of trustees of the municipality or fire protection district involved. Two members of the board shall be active participants of the pension fund who are elected from the active participants of the fund. One member of the board shall be a person who is retired under the Firemen's Pension Fund Act of 1919 or this Article who is elected from persons retired under the Firemen's Pension Fund Act of 1919 or this Article.

Beginning on the 3rd Monday in January of 2008, the board for each municipality or fire protection district shall consist of 7 members. Four members of the board shall be appointed by the mayor or president of the board of trustees of the municipality or fire protection district involved. Two members of the board shall be active participants of the pension fund who are elected from the active participants of the fund. One member of the board shall be a person who is retired under the Firemen's Pension Fund Act of 1919 or this Article who is elected from persons retired under the Firemen's Pension Fund Act of 1919 or this Article.

Two of the 4 members of the board appointed by the mayor or president of the board of trustees of the municipality shall not hold any other public office, shall not be a participant in the fund, and shall also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. All appointed members shall serve a term of 2 years.

For the purposes of this Section, a firefighter receiving a disability pension shall be considered a retired firefighter. In the event that there are no retired firefighters under the Fund or if none is willing to serve on the board, then an additional active firefighter shall be elected to the board in lieu of the retired firefighter that would otherwise be elected.

If the regularly constituted fire department of a municipality is dissolved and Section 4-106.1 is not applicable, the board shall continue to exist and administer the Fund so long as there continues to be any annuitant or deferred pensioner in the Fund. In such cases, elections shall continue to be held as specified in this Section, except that: (1) deferred pensioners shall be deemed to be active members for the purposes of such elections; (2) any otherwise unfillable positions on the board, including ex officio positions, shall be filled by election from the remaining firefighters and deferred pensioners of the Fund, to the extent possible; and (3) if the membership of the board falls below 3 persons, the Illinois Director of Insurance or his or her designee shall be deemed a member of the board, ex officio.

The members chosen from the active and retired firefighters shall be elected by ballot at elections to be held on the 3rd Monday in April of the applicable years under the Australian ballot system, at such place or places, in the municipality, and under such regulations as shall be prescribed by the board.

No person shall cast more than one vote for each candidate for whom he or she is eligible to vote. In the elections for board members to be chosen from the active firefighters, all active firefighters and no others may vote. In the elections for board members to be chosen from retired firefighters, the retired firefighters and no others may vote.

Each member of the board so elected shall hold office for a term of 3 years and until his or her successor has been duly elected and qualified.

The board shall canvass the ballots and declare which persons have been elected and for what term or terms respectively. In case of a tie vote between 2 or more candidates, the board shall determine by lot which candidate or candidates have been elected and for what term or terms respectively. In the event of the failure, resignation, or inability to act of any board member, a successor shall be elected for the unexpired term at a special election called by the board and conducted in the same manner as a regular election.

The board shall elect annually from its members a president and secretary.

Board members shall not receive or have any right to receive any salary from a pension fund for services performed as board members.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 94-317, eff. 7-25-05.)

(40 ILCS 5/5-178) (from Ch. 108 1/2, par. 5-178)

Sec. 5-178. Board created. A board of 10 8 members shall constitute a board of trustees authorized to administer the provisions of this Article. The board shall be known as the Retirement Board of the Policemen's Annuity and Benefit Fund of the city.

The board shall consist of 6 4 persons appointed by the mayor of the city; 3 policemen employed by the city, at least one of whom shall be a lieutenant or of a rank superior to lieutenant, one of whom shall be of the rank of sergeant, and one of whom shall be of the rank of investigator or a rank inferior to that rank; and one annuitant of the fund, or a pensioner of any prior police pension fund in operation, by authority of law, in the city. Children less than age 18 shall not be eligible for board membership. The term of office for all members shall be 3 years. Upon his or her election, the member holding the rank of investigator or a rank inferior to that rank shall be detailed by the Police Superintendent to the office of the board for the duration of his or her term as trustee. Two of the 6 persons appointed by the mayor of the city shall not hold any other public office, shall not be a participant in the fund, and shall also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. These 2 members must be approved by a majority vote of the City Council.

The members of a retirement board holding office in a city at the time this Article becomes effective, including elected, appointed and ex-officio members, shall continue in office until the expiration of their respective terms or appointment and until their respective successors are elected or appointed, and qualified.

At least 30 days prior to the expiration of the term of office of each appointive member the mayor shall appoint a successor for a term of 3 years.

The board shall conduct a regular election at least 30 days prior to the expiration of the terms of the active policemen members and annuitant or beneficiary members for election of a successor of each such member for a term of 3 years.

Any member of the board so appointed or elected shall continue in office until his or her successor is selected and has qualified.

Any person so appointed or elected shall qualify by taking an oath of office. A copy thereof shall be kept in the office of the city clerk of the city.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 86-273.)

(40 ILCS 5/6-174) (from Ch. 108 1/2, par. 6-174)

Sec. 6-174. Board created. A board of 10 8 members shall constitute a board of trustees authorized to administer the provisions of this Article. The board shall be known as the Retirement Board of the Firemen's Annuity and Benefit Fund of the city.

The board shall consist of the city treasurer, the city comptroller, the city clerk, a deputy fire commissioner designated by the fire commissioner of the city, 3 firemen employed by the city, and 1 annuitant of the fund or a fireman pensioner of any prior firemen's pension fund in operation, by authority of law, in the city, and 2 persons appointed by the mayor of the city who do not hold any other public office, who are not participants in the fund, and who also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. These 2 members must be approved by a majority vote of the City Council. Children less than age 18 shall not be eligible for membership.

The members of a retirement board holding office at the time this Article becomes effective, including elected and ex officio members, shall continue in office until the expiration of their respective terms or appointment and until their respective successors are elected or appointed, and qualified.

In a city which first attains a population of over 500,000 and comes under the provisions of this Article, the active firemen members of the board of trustees of any firemen's pension fund then in effect in such city and the member of such board who was chosen from the retired members of such fund shall become members of the board as follows:

(a) The active fireman member for whom the highest number of votes was cast and counted at the most recent election for board members shall become a member of the retirement board for a term which shall end on December 1st of the third year after the year in which this Article comes into force in the city; the member of the board for whom the second highest number of votes was cast and counted at such election shall become a member of the retirement board for a term which shall end on December 1st of the second year after the year in which this Article comes into force in the city; and the member of the board for whom the third highest number of votes was cast and counted at such election shall become a member of the retirement board for a term which shall end on December 1st of the first year after the year in which this Article comes into force in the city.

(b) The annuitant member of the pension fund shall become a member of the board for a term which shall end on December 1st of the second year after the year in which this Article comes into force in the city.

The board shall conduct regular elections annually, at least 30 days prior to the expiration of the term of the active fireman member of the board whose term next expires, for the election of a successor for a term of 3 years. The board also shall conduct regular elections biennially, at least 30 days prior to the expiration of the term of the member who is a pensioner of any pension fund formerly in effect in such city or an annuitant of the annuity and benefit fund herein provided, for the election of a successor to such member for a term of 2 years.

Any member of the board, elected as aforesaid, shall continue in office until his or her successor is elected and qualified.

The 2 persons appointed by the mayor who do not hold any other public office, who are not participants in the fund, and who also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets shall serve 2-year terms.

Each member of the board, before entering upon the duties of his or her office, shall take the oath prescribed by the Constitution of this State, which oath shall be filed in the office of the city clerk of the city.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 86-273.)

(40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174)

Sec. 7-174. Board created.

(a) A board of 10 8 members shall constitute a board of trustees authorized to carry out the provisions of this Article. Excluding the 2 persons appointed by the Governor, each Each trustee shall be a participating employee of a participating municipality or participating instrumentality or an annuitant of the Fund. and Excluding the 2 persons appointed by the Governor, no person shall be eligible to become a trustee after January 1, 1979 who does not have at least 8 years of creditable service.

(b) The board shall consist of representatives of various groups as follows:

1. 4 trustees shall be a chief executive officer, chief finance officer, or other officer, executive or department head of a participating municipality or participating instrumentality, and each such trustee shall be designated as an executive trustee.

2. 3 trustees shall be employees of a participating municipality or participating instrumentality and each such trustee shall be designated as an employee trustee.

3. One trustee shall be an annuitant of the Fund, who shall be designated the annuitant trustee.

4. 2 trustees who do not hold any other public office, who are not participants in the fund, and who also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets shall be appointed by the Governor.

(c) A person elected as a trustee shall qualify as a trustee, after declaration by the board that he has been duly elected, upon taking and subscribing to the constitutional oath of office and filing same in the office of the Fund.

(d) Excluding the 2 trustees appointed by the Governor, the The term of office of each trustee shall begin upon January 1 of the year following the year in which he is elected and shall continue for a period of 5 years and until a successor has been elected and qualified, or until prior resignation, death, incapacity or disqualification. The 2 trustees appointed by the mayor Governor shall serve terms of 2 years.

(e) Any elected trustee (other than the annuitant trustee) shall be disqualified immediately upon termination of employment with all participating municipalities and instrumentalities thereof or upon any change in status which removes any such trustee from all employments within the group he represents. The annuitant trustee shall be disqualified upon termination of his or her annuity.

(f) The trustees shall fill any vacancy in the board by appointment, for the period until the next election of trustees, or, if the remaining term is less than 2 years, for the remainder of the term, and until his or her successor has been elected and qualified.

(g) Trustees shall serve without compensation, but shall be reimbursed for any reasonable expenses incurred in attending meetings of the board and in performing duties on behalf of the Fund and for the amount of any earnings withheld by any employing municipality or participating instrumentality because of attendance at any board meeting.

(h) Each trustee other than the annuitant trustee shall be entitled to one vote on any and all actions before the board; the annuitant trustee is not entitled to vote on any matter. At least 5 4 concurring votes shall be necessary for every decision or action by the board at any of its meetings. No decision or action shall become effective unless presented and so approved at a regular or duly called special meeting of the board.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 89-136, eff. 7-14-95.)

(40 ILCS 5/8-192) (from Ch. 108 1/2, par. 8-192)

Sec. 8-192. Board created. A board of 7 5 members shall constitute a Board of Trustees authorized to carry out the provisions of this Article. The board shall be known as the Retirement Board of the Municipal Employees', Officers', and Officials' Annuity and Benefit Fund of the city, or for the sake of brevity may also be known and referred to as the Retirement Board of the Municipal Employees' Annuity and Benefit Fund of such city. The board shall consist of the city comptroller, the city treasurer, 2 persons appointed by the mayor of the city and confirmed by the City Council, and 3 members who shall be employees, to be elected as follows:

Within 30 days after the effective date, the mayor of the city shall arrange for and hold an election.

One employee shall be elected for a term ending on the first day in the month of December of the first year next following the effective date; one for a term ending December 1st of the following year; and one for a term ending on December 1st of the second following year.

The city comptroller, with the approval of the board, may appoint a designee from among employees of the city who are versed in the affairs of the comptroller's office to act in the absence of the comptroller on all matters pertaining to administering the provisions of this Article.

The 2 persons appointed by the mayor of the city shall not hold any other public office, shall not be participants in the fund, and shall also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. These 2 appointees shall serve terms of 2 years.

The members of a Retirement Board of a municipal employees', officers', and officials' annuity and benefit fund holding office in a city at the time this Article becomes effective, including elective and ex-officio members, shall continue in office until the expiration of their terms and until their respective successors are elected or appointed and have qualified.

An employee member who takes advantage of the early retirement incentives provided under this amendatory Act of the 93rd General Assembly may continue as a member until the end of his or her term.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 93-654, eff. 1-16-04.)

(40 ILCS 5/9-185) (from Ch. 108 1/2, par. 9-185)

Sec. 9-185. Board created.

(a) A board of 11 9 members shall constitute the board of trustees authorized to carry out the provisions of this Article. The board of trustees shall be known as "The Retirement Board of the County Employees' Annuity and Benefit Fund of .... County". The board shall consist of 6 2 members appointed and 5 7 members elected as hereinafter prescribed.

(b) The appointed members shall be appointed as follows: One member shall be appointed by the comptroller of such county, who may be the comptroller or some person chosen by him from among employees of the county, who are versed in the affairs of the comptroller's office; and one member shall be appointed by the treasurer of such county, who may be the treasurer or some person chosen by him from among employees of the County who are versed in the affairs of the treasurer's office; one member shall be appointed by the clerk of the county, who may be the clerk or some person chosen by him from among employees of the county, who are versed in the affairs of the clerk's office; one member shall be appointed by the state's attorney of the county, who may be the state's attorney or some person chosen by him from among employees of the county, who are versed in the affairs of the state's attorney's office; and 2 members who do not hold any other public office, who are not participants in the fund, and who also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets shall be appointed by the president of the county board. The 2 members appointed by the president of the county board must be approved by the board of commissioners of the county.

The member appointed by the comptroller, the member appointed by the clerk, and one of the members appointed by the president shall hold office for a term ending on December 1st of the first year following the year of appointment. The member appointed by the county treasurer, the member appointed by the state's attorney, and the other member appointed by the president shall hold office for a term ending on December 1st of the second year following the year of appointment.

Thereafter, each appointed member shall be appointed by the officer that appointed his or her predecessor for a term of 2 years.

(c) Three county employee members of the board shall be elected as follows: within 30 days from and after the date upon which this Article comes into effect in the county, the clerk of the county shall arrange for and hold an election. One employee shall be elected for a term ending on the first day in the month of December of the first year next following the effective date; one for a term ending on December 1st of the following year; and one for a term ending December 1st of the second following year.

(c-1) After January 1, 2008, the first of the 3 county employee members whose term expires or who leaves the board for any reason shall not be replaced by election or appointment, and the board shall thereafter have 2 county employee members.

(d) Beginning December 1, 1988, and every 3 years thereafter, an annuitant member of the board shall be elected as follows: the board shall arrange for and hold an election in which only those participants who are currently receiving retirement benefits under this Article shall be eligible to vote and be elected. Each such member shall be elected to a term ending on the first day in the month of December of the third following year.

(d-1) Beginning December 1, 2001, and every 3 years thereafter, an annuitant member of the board shall be elected as follows: the board shall arrange for and hold an election in which only those participants who are currently receiving retirement benefits under this Article shall be eligible to vote and be elected. Each such member shall be elected to a term ending on the first day in the month of December of the third following year. Until December 1, 2001, the position created under this subsection (d-1) may be filled by the board as in the case of a vacancy.

(d-2) After January 1, 2008, the first of the 2 county annuitant members whose term expires or who leaves the board for any reason shall not be replaced by election or appointment, and the board shall thereafter have 1 county annuitant member.

(e) Beginning December 1, 1988, if a Forest Preserve District Employees' Annuity and Benefit Fund shall be in force in such county and the board of this fund is charged with administering the affairs of such annuity and benefit fund for employees of such forest preserve district, a forest preserve district member of the board shall be elected as of December 1, 1988, and every 3 years thereafter as follows: the board shall arrange for and hold an election in which only those employees of such forest preserve district who are contributors to the annuity and benefit fund for employees of such forest preserve district shall be eligible to vote and be elected. Each such member shall be elected to a term ending on the first day in the month of December of the third following year.

(f) Beginning December 1, 2001, and every 3 years thereafter, if a Forest Preserve District Employees' Annuity and Benefit Fund is in force in the county and the board of this Fund is charged with administering the affairs of that annuity and benefit fund for employees of the forest preserve district, a forest preserve district annuitant member of the board shall be elected as follows: the board shall arrange for and hold an election in which only those participants who are currently receiving retirement benefits under Article 10 shall be eligible to vote and be elected. Each such member shall be elected to a term ending on the first day in the month of December of the third following year. Until December 1, 2001, the position created under this subsection (f) may be filled by the board as in the case of a vacancy.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 92-66, eff. 7-12-01.)

(40 ILCS 5/11-181) (from Ch. 108 1/2, par. 11-181)

Sec. 11-181. Board created. A board of 11 8 members shall constitute the board of trustees authorized to carry out the provisions of this Article. The board shall be known as the Retirement Board of the Laborers' and Retirement Board Employees' Annuity and Benefit Fund of the city. The board shall consist of 8 5 persons appointed and 2 employees and one annuitant elected in the manner hereinafter prescribed.

The appointed members of the board shall be appointed as follows:

One member shall be appointed by the comptroller of the city, who may be himself or anyone chosen from among employees of the city who are versed in the affairs of the comptroller's office; one member shall be appointed by the City Treasurer of the city, who may be himself or a person chosen from among employees of the city who are versed in the affairs of the City Treasurer's office; one member shall be appointed by the chief financial officer of the city, who may be himself or a person chosen from among employees of the city who are versed in the affairs of the chief financial officer's office; one member shall be an employee of the city appointed by the president of the local labor organization representing a majority of the employees participating in the Fund; one and 2 members shall be appointed by the civil service commission or the Department of Personnel of the city from among employees of the city who are versed in the affairs of the civil service commission's office or the Department of Personnel; and 3 members shall be appointed by the mayor of the city who do not hold any other public office, who are not participants in the fund, and who also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. The 2 members appointed by the mayor must be approved by the city council.

The member appointed by the comptroller shall hold office for a term ending on December 1st of the first year following the year of appointment. The member appointed by the City Treasurer shall hold office for a term ending on December 1st of the second year following the year of appointment. The member appointed by the civil service commission shall hold office for a term ending on the first day in the month of December of the third year following the year of appointment. The additional member appointed by the civil service commission under this amendatory Act of 1998 shall hold office for an initial term ending on December 1, 2000, and the member appointed by the labor organization president shall hold office for an initial term ending on December 1, 2001. One of the 2 members appointed by the mayor under this amendatory Act of the 95th General Assembly shall hold office for an initial term ending on December 1, 2008, and the other member appointed by the mayor shall hold office for an initial term ending on December 1, 2009. Thereafter each appointive member shall be appointed by the officer or body that appointed his or her predecessor, for a term of 3 years.

Members in office on the effective date of this amendatory Act of the 95th General Assembly shall serve their full terms. When the term of the first of the 2 members appointed by the civil service commission expires, the civil service commission shall not appoint a new member to replace him.

The 2 employee members of the board shall be elected as follows:

Within 30 days from and after the appointive members have been appointed and have qualified, the appointive members shall arrange for and hold an election.

One employee shall be elected for a term ending on December 1st of the first year next following the effective date; one for a term ending on December 1st of the following year.

An employee member who takes advantage of the early retirement incentives provided under this amendatory Act of the 93rd General Assembly may continue as a member until the end of his or her term.

The initial annuitant member shall be appointed by the other members of the board for an initial term ending on December 1, 1999. The annuitant member elected in 1999 shall be deemed to have been elected for a 3-year term ending on December 1, 2002. Thereafter, the annuitant member shall be elected for a 3-year term ending on December 1st of the third year following the election.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 93-654, eff. 1-16-04.)

(40 ILCS 5/12-156) (from Ch. 108 1/2, par. 12-156)

Sec. 12-156. Board created.

A board composed of 9 7 members shall constitute a Board of Trustees authorized to carry out the provisions of this Article. Such Board of Trustees shall be known as the Retirement Board of the Park Employees' and Retirement Board Employees' Annuity and Benefit Fund.

Three members of such board shall be appointed by the board of park commissioners for terms of 3 years. Four members of such board shall be elected from among the employees for terms of 4 years who shall serve until their respective successors have been elected and have qualified. Two members shall be appointed by the mayor of the city who do not hold any other public office, who are not participants in the fund, and who also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. The 2 members appointed by the mayor must be approved by the city council and shall serve terms of 2 years.

The members of the board of a fund holding office at the time this Article becomes effective, including elected and appointed members, shall continue in office until the expiration of their respective terms or appointments and until their respective successors are appointed or elected and have qualified. When the term of any appointed member expires, the board of park commissioners shall appoint a successor.

The board shall conduct regular elections annually under rules which shall be adopted by it for the election of successors to members of the board whose terms shall expire. All employees who are included under the provisions of this Article shall be entitled to vote. The ballots shall be of secret character.

Each person elected or appointed to membership upon the board shall take a written oath of office that he will, so far as it devolves upon him, diligently and honestly administer the affairs of the office to which he was elected or appointed and that he will not knowingly violate or wilfully permit to be violated any of the provisions of law applicable under this Article. Such oath shall be subscribed by the person making it, and certified to by the officer before whom it is taken, and deposited with the custodian of the fund. Anyone after appointment or election shall be deemed to have qualified for membership on the board when such certificate is deposited with the custodian of the fund.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: Laws 1963, p. 161.)

(40 ILCS 5/13-701) (from Ch. 108 1/2, par. 13-701)

Sec. 13-701. Board created. A board of 7 5 members shall constitute the Board of Trustees authorized to carry out the provisions of this Article. The board shall be known as the Retirement Board of the Metropolitan Water Reclamation District Pension Fund.

The board shall consist of 2 members appointed by the Board of Commissioners of the Water Reclamation District, and 3 elected employee members, and 2 members appointed by the mayor of the City of Chicago who do not hold any other public office, who are not participants in the fund, and who also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. The 2 members appointed by the mayor must be approved by the Chicago City Council.

Each appointed member shall be appointed for a term of 2 years in the month of January prior to the expiration of the term of office of the appointed member whose term next expires.

Members of the Board shall hold office until the expiration of their respective terms and until their respective successors are appointed or elected and have qualified. This amendatory Act of 1991 shall not affect the terms of the Board members holding office on its effective date.

Any person elected or appointed as a member of the Board shall qualify by taking an oath of office to be administered by any officer authorized to administer oaths or any sitting member of the Board. A copy thereof shall be filed with the clerk of the Water Reclamation District and with the Executive Director of the Fund.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 87-794.)

(40 ILCS 5/14-134) (from Ch. 108 1/2, par. 14-134)

Sec. 14-134. Board created. The retirement system created by this Article shall be a trust, separate and distinct from all other entities. The responsibility for the operation of the system and for making effective this Article is vested in a board of trustees.

The board shall consist of 9 7 trustees, as follows:

(a) the Director of the Governor's Office of Management and Budget; (b) the Comptroller; (c) one trustee, not a State employee, who shall be Chairman, to be appointed by the Governor for a 5 year term; (d) two members of the system, one of whom shall be an annuitant age 60 or over, having at least 8 years of creditable service, to be appointed by the Governor for terms of 5 years; (e) one member of the system having at least 8 years of creditable service, to be elected from the contributing membership of the system by the contributing members as provided in Section 14-134.1; (f) one annuitant of the system who has been an annuitant for at least one full year, to be elected from and by the annuitants of the system, as provided in Section 14-134.1; (g) two additional members to be appointed by the Governor for 2-year terms who do not hold any other public office, who are not participants in the fund, and who also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. These 2 members must be confirmed by the State Senate. The Director of the Governor's Office of Management and Budget and the Comptroller shall be ex-officio members and shall serve as trustees during their respective terms of office, except that each of them may designate another officer or employee from the same agency to serve in his or her place. However, no ex-officio member may designate a different proxy within one year after designating a proxy unless the person last so designated has become ineligible to serve in that capacity. Except for the elected trustees, any vacancy in the office of trustee shall be filled in the same manner as the office was filled previously.

A trustee shall serve until a successor qualifies, except that a trustee who is a member of the system shall be disqualified as a trustee immediately upon terminating service with the State.

Each trustee is entitled to one vote on the board, and 5 4 trustees shall constitute a quorum for the transaction of business. The affirmative votes of a majority of the trustees present, but at least 4 3 trustees, shall be necessary for action by the board at any meeting. The board's action of July 22, 1986, by which it amended the bylaws of the system to increase the number of affirmative votes required for board action from 3 to 4 (in response to Public Act 84-1028, which increased the number of trustees from 5 to 7), and the board's rejection, between that date and the effective date of this amendatory Act of 1993, of proposed actions not receiving at least 4 affirmative votes, are hereby validated.

The trustees shall serve without compensation, but shall be reimbursed from the funds of the system for all necessary expenses incurred through service on the board.

Each trustee shall take an oath of office that he or she will diligently and honestly administer the affairs of the system, and will not knowingly violate or willfully permit the violation of any of the provisions of law applicable to the system. The oath shall be subscribed to by the trustee making it, certified by the officer before whom it is taken, and filed with the Secretary of State. A trustee shall qualify for membership on the board when the oath has been approved by the board.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 94-793, eff. 5-19-06.)

(40 ILCS 5/15-159) (from Ch. 108 1/2, par. 15-159)

Sec. 15-159. Board created. A board of trustees constituted as provided in this Section shall administer this System. The board shall be known as the Board of Trustees of the State Universities Retirement System.

(b) Until July 1, 1995, the Board of Trustees shall be constituted as follows:

Two trustees shall be members of the Board of Trustees of the University of Illinois, one shall be a member of the Board of Trustees of Southern Illinois University, one shall be a member of the Board of Trustees of Chicago State University, one shall be a member of the Board of Trustees of Eastern Illinois University, one shall be a member of the Board of Trustees of Governors State University, one shall be a member of the Board of Trustees of Illinois State University, one shall be a member of the Board of Trustees of Northeastern Illinois University, one shall be a member of the Board of Trustees of Northern Illinois University, one shall be a member of the Board of Trustees of Western Illinois University, and one shall be a member of the Illinois Community College Board, selected in each case by their respective boards, and 2 shall be participants of the system appointed by the Governor for a 6 year term with the first appointment made pursuant to this amendatory Act of 1984 to be effective September 1, 1985, and one shall be a participant appointed by the Illinois Community College Board for a 6 year term, and one shall be a participant appointed by the Board of Trustees of the University of Illinois for a 6 year term, and one shall be a participant or annuitant of the system who is a senior citizen age 60 or older appointed by the Governor for a 6 year term with the first appointment to be effective September 1, 1985.

The terms of all trustees holding office under this subsection (b) on June 30, 1995 shall terminate at the end of that day and the Board shall thereafter be constituted as provided in subsection (c).

(c) Beginning July 1, 1995, the Board of Trustees shall be constituted as follows:

The Board shall consist of 9 trustees appointed by the Governor. Two of the trustees, designated at the time of appointment, shall be participants of the System. Two of the trustees, designated at the time of appointment, shall be annuitants of the System who are receiving retirement annuities under this Article. The 5 remaining trustees may, but need not, be participants or annuitants of the System.

The term of office of trustees appointed under this subsection (c) shall be 6 years, beginning on July 1. However, of the initial trustees appointed under this subsection (c), 3 shall be appointed for terms of 2 years, 3 shall be appointed for terms of 4 years, and 3 shall be appointed for terms of 6 years, to be designated by the Governor at the time of appointment.

A vacancy on the board of trustees caused by resignation, death, expiration of term of office, or other reason shall be filled by a qualified person appointed by the Governor for the remainder of the unexpired term.

Trustees (other than the trustees incumbent on June 30, 1995) shall continue in office until their respective successors are appointed and have qualified, except that a trustee appointed to one of the participant positions shall be disqualified immediately upon the termination of his or her status as a participant and a trustee appointed to one of the annuitant positions shall be disqualified immediately upon the termination of his or her status as an annuitant receiving a retirement annuity.

(d) Each trustee must take an oath of office before a notary public of this State and shall qualify as a trustee upon the presentation to the board of a certified copy of the oath. The oath must state that the person will diligently and honestly administer the affairs of the retirement system, and will not knowingly violate or wilfully permit to be violated any provisions of this Article.

Each trustee shall serve without compensation but shall be reimbursed for expenses necessarily incurred in attending board meetings and carrying out his or her duties as a trustee or officer of the system.

(e) This amendatory Act of 1995 is intended to supersede the changes made to this Section by Public Act 89-4.

(f) Beginning in January of 2008, the 5 members appointed by the Governor who are not the 2 employee members or the 2 annuitant members required under subsection (c) may not be participants or annuitants of the System. Two of these 5 members shall not hold any other public office and shall also have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. Members in office on the effective date of this amendatory Act of the 95th General Assembly who are not the 2 employee members or the 2 annuitant members required under subsection (c) and who are participants or annuitants of the System shall serve until the end of their term and shall be replaced by trustees who are not participants or annuitants when their terms expire.

(g) All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 89-4, eff. 1-1-96; 89-196, eff. 7-21-95.)

(40 ILCS 5/16-163) (from Ch. 108 1/2, par. 16-163)

Sec. 16-163. Board created. Until January of 2008, a A board of 11 members constitutes the board of trustees authorized to carry out the provisions of this Article and is responsible for the general administration of the System. The board shall be known as the Board of Trustees of the Teachers' Retirement System of the State of Illinois. The board shall be composed of the Superintendent of Education, ex officio, who shall be the president of the board; 4 persons, not members of the System, to be appointed by the Governor, who shall hold no elected State office; 4 persons who, at the time of their election, are teachers as defined in Section 16-106, elected by the contributing members; and 2 annuitant members elected by the annuitants of the System, as provided in Section 16-165.

Beginning in January of 2008, a board of 9 members constitutes the board of trustees authorized to carry out the provisions of this Article and is responsible for the general administration of the System. The board shall be known as the Board of Trustees of the Teachers' Retirement System of the State of Illinois. The board shall be composed of the Superintendent of Education, ex officio, who shall be the president of the board; 4 persons, not members of the System, to be appointed by the Governor, who shall hold no elected State office; 3 persons who, at the time of their election, are teachers as defined in Section 16-106 elected by the contributing members; and 1 annuitant members elected by the annuitants of the System, as provided in Section 16-165. Two of the 4 members appointed by the Governor must have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. Members in office on the effective date of this amendatory Act of the 95th General Assembly shall serve until the end of their terms. The first teacher and the first annuitant whose terms expire shall not be replaced by election.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 94-423, eff. 8-2-05.)

(40 ILCS 5/17-137) (from Ch. 108 1/2, par. 17-137)

Sec. 17-137. Board created. There shall be elected a Board of Trustees, herein also referred to as the "Board", to administer and control the Fund created by this Article. The Board shall consist of 12 members, 2 of whom shall be members of the Board of Education, 6 of whom shall be contributors who are not principals, one of whom shall be a contributor who is a principal, and 3 of whom shall be pensioners, all to be chosen as provided in this Article.

Beginning in January of 2008, The Board shall consist of 9 members, 3 of whom shall be members of the Board of Education, 2 of whom shall be contributors who are not principals, one of whom shall be a contributor who is a principal, and one of whom shall be a pensioner, all to be chosen as provided in this Article. The remaining 2 members shall be appointed by the Board of Education, shall hold no other public office, shall not be participants in the fund, and shall have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. Members in office on the effective date of this amendatory Act of the 95th General Assembly shall serve until the end of their term. The first 4 members who are contributors, who are not principals, and whose terms expire, and the first 2 members who are pensioners and whose terms expire shall not be replaced by election.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 89-136, eff. 7-14-95; 90-566, eff. 1-2-98.)

(40 ILCS 5/18-135) (from Ch. 108 1/2, par. 18-135)

Sec. 18-135. Board created. This system shall be administered by a Board of Trustees, of 7 5 members as follows: the State Treasurer, the Chief Justice of the Supreme Court, and 3 participating judges, and 2 persons appointed by the Governor who do not hold any other public office, who are not participants in the fund, and who have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets. The 2 persons appointed by the Governor must be confirmed by the State Senate. The State Treasurer and the Chief Justice shall be ex-officio members and shall serve as trustees during their respective terms of office. Each participating judge trustee shall serve for a term of 3 years. Their successors shall be appointed by the Supreme Court not more than 3 months nor less than one month prior to the expiration of their respective terms of office.

Each trustee shall take an oath of office. The filing of a certified copy of the oath with the secretary of the board shall qualify the person as a trustee. The oath shall state that the person will diligently and honestly administer the affairs of the retirement system, and will not knowingly violate or wilfully permit any of the provisions of this Article to be violated.

A participant trustee shall be disqualified as a trustee immediately upon termination of employment as a judge. The vacancy so created shall be filled for the unexpired term by the Supreme Court.

Each trustee shall have one vote on all actions of the board and at least 4 3 concurring votes shall be necessary for any action by the board at any meeting. No decision or action shall become effective unless presented and so approved by the board.

All members of the board of trustees who do not have a minimum of 5 years of experience in the direct management, analysis, supervision, or investment of assets must undergo annual financial training under rules prescribed by the board.

(Source: P.A. 83-1440.)

Section 90. The State Mandates Act is amended by adding Section 8.31 as follows:

(30 ILCS 805/8.31 new)

Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 95th General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.