Full Text of SB1679 97th General Assembly
SB1679 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB1679 Introduced 2/9/2011, by Sen. Jeffrey M. Schoenberg SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/3-132 | from Ch. 108 1/2, par. 3-132 | 40 ILCS 5/3-140.2 new | | 40 ILCS 5/4-123 | from Ch. 108 1/2, par. 4-123 | 40 ILCS 5/4-129.2 new | | 40 ILCS 5/7-174 | from Ch. 108 1/2, par. 7-174 | 40 ILCS 5/7-175 | from Ch. 108 1/2, par. 7-175 | 40 ILCS 5/7-175.1 | from Ch. 108 1/2, par. 7-175.1 | 40 ILCS 5/7-199.4 new | |
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Amends the Downstate Police, Downstate Firefighters, and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Requires the board of each downstate police and downstate firefighter fund to transfer to the board of trustees of the Illinois Municipal Retirement Fund, for the management and administration of all investments owned by the funds. Terminates, upon completion of the transfer, the authority of the boards of each downstate police and downstate firefighter fund to make investments. Charges the board of trustees of the Illinois Municipal Retirement Fund with controlling and managing the investment expenditures and income, including interest dividends,
capital gains, and other distributions on the investments of the downstate police and downstate firefighter funds. Provides for the election of a police officer trustee and a firefighter trustee to the board of trustees of the Illinois Municipal Retirement Fund.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 3-132, 4-123, 7-174, 7-175, and 7-175.1 and by adding | 6 | | Section 3-140.2, 4-129.2, and 7-199.4 as follows:
| 7 | | (40 ILCS 5/3-132) (from Ch. 108 1/2, par. 3-132)
| 8 | | Sec. 3-132. To control and manage the Pension Fund. In | 9 | | accordance with the
applicable provisions of Articles 1 and 1A | 10 | | and this Article, to control and
manage , exclusively, the | 11 | | following:
| 12 | | (1) the pension fund,
| 13 | | (2) until the effective date of this amendatory Act of | 14 | | the 97th General Assembly, investment expenditures and | 15 | | income, including interest dividends,
capital gains and | 16 | | other distributions on the investments, and
| 17 | | (3) all money donated, paid, assessed, or provided by
| 18 | | law for the pensioning of disabled and retired police | 19 | | officers, their
surviving spouses, minor children, and | 20 | | dependent parents.
| 21 | | All money received or collected shall be credited by the | 22 | | treasurer of the
municipality to the account of the pension | 23 | | fund and
held by the treasurer of the municipality subject to |
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| 1 | | the order and
control of the board. The treasurer of the | 2 | | municipality shall maintain a
record of all money received, | 3 | | transferred, and held for the account of the
board.
| 4 | | (Source: P.A. 90-507, eff. 8-22-97.)
| 5 | | (40 ILCS 5/3-140.2 new) | 6 | | Sec. 3-140.2. Investment of funds by the board of trustees | 7 | | of the Illinois Municipal Retirement Fund. The board of each | 8 | | fund must transfer to the board of trustees of the Illinois | 9 | | Municipal Retirement Fund, for management and administration, | 10 | | all investments owned by the fund of every kind and character. | 11 | | Upon completion of the transfer, the authority of the board of | 12 | | a fund to make investments shall terminate. Thereafter, all | 13 | | investments of the reserves of each fund shall be made by the | 14 | | board of trustees of the Illinois Municipal Retirement Fund. | 15 | | The transfers shall be made not later than the first day of | 16 | | the fourth month next following the effective date of this | 17 | | amendatory Act of the 97th General Assembly. Before each | 18 | | transfer, an audit of the investments shall be completed by a | 19 | | certified public accountant who is (i) selected by the board | 20 | | created under this Article and (ii) approved by the Auditor | 21 | | General of the State of Illinois. The expense of each audit | 22 | | shall be assumed by the board created under this Article.
| 23 | | (40 ILCS 5/4-123) (from Ch. 108 1/2, par. 4-123)
| 24 | | Sec. 4-123. To control and manage the Pension Fund. In |
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| 1 | | accordance with the
applicable provisions of Articles 1 and 1A | 2 | | and this Article, to control and
manage , exclusively, the | 3 | | following:
| 4 | | (1) the pension fund,
| 5 | | (2) until the effective date of this amendatory Act of | 6 | | the 97th General Assembly, investment expenditures and | 7 | | income, including interest dividends,
capital gains, and | 8 | | other distributions on the investments, and
| 9 | | (3) all money donated, paid, assessed, or provided by | 10 | | law for the
pensioning of disabled and retired | 11 | | firefighters, their surviving spouses,
minor children, and | 12 | | dependent parents.
| 13 | | All money received or collected shall be credited by the | 14 | | treasurer of the
municipality to the account of the pension | 15 | | fund and held by the treasurer of
the municipality subject to | 16 | | the order and control of the board. The treasurer
of the | 17 | | municipality shall maintain a record of all money received, | 18 | | transferred,
and held for the account of the board.
| 19 | | (Source: P.A. 90-507, eff. 8-22-97.)
| 20 | | (40 ILCS 5/4-129.2 new) | 21 | | Sec. 4-129.2. Investment of funds by the board of trustees | 22 | | of the Illinois Municipal Retirement Fund. The board of each | 23 | | fund must transfer to the board of trustees of the Illinois | 24 | | Municipal Retirement Fund, for management and administration, | 25 | | all investments owned by the fund of every kind and character. |
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| 1 | | Upon completion of the transfer, the authority of the board of | 2 | | a fund to make investments shall terminate. Thereafter, all | 3 | | investments of the reserves of each fund shall be made by the | 4 | | board of trustees of the Illinois Municipal Retirement Fund. | 5 | | The transfers shall be made not later than the first day of | 6 | | the fourth month next following the effective date of this | 7 | | amendatory Act of the 97th General Assembly. Before each | 8 | | transfer, an audit of the investments shall be completed by a | 9 | | certified public accountant who is (i) selected by the board | 10 | | created under this Article and (ii) approved by the Auditor | 11 | | General of the State of Illinois. The expense of each audit | 12 | | shall be assumed by the board created under this Article.
| 13 | | (40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174)
| 14 | | Sec. 7-174. Board created.
| 15 | | (a) A board of 10 8 members shall
constitute a board of | 16 | | trustees authorized to carry out the provisions of
this | 17 | | Article. Each trustee shall be a participating employee of a
| 18 | | participating municipality or participating instrumentality or | 19 | | an annuitant
of the Fund or a participant under Article 3 or 4, | 20 | | and no person shall be eligible to become a trustee after | 21 | | January
1, 1979 who does not have at least 8 years of | 22 | | creditable service.
| 23 | | (b) The board shall consist of representatives of various | 24 | | groups as
follows:
| 25 | | 1. 4 trustees shall be a chief executive officer, chief |
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| 1 | | finance
officer, or other officer, executive or department | 2 | | head of a
participating municipality or participating | 3 | | instrumentality, and each
such trustee shall be designated | 4 | | as an executive trustee.
| 5 | | 2. 3 trustees shall be employees of a participating | 6 | | municipality or
participating instrumentality and each | 7 | | such trustee shall be designated
as an employee trustee.
| 8 | | 3. One trustee shall be an annuitant of the Fund, who | 9 | | shall be
designated the annuitant trustee.
| 10 | | 4. One trustee shall be a police officer who | 11 | | participates in a fund established under Article 3, who | 12 | | shall be designated the police officer trustee. | 13 | | 5. One trustee shall be a firefighter who participates | 14 | | in a fund established under Article 4, who shall be | 15 | | designated the firefighter trustee. | 16 | | (c) A person elected as a trustee shall qualify as a | 17 | | trustee, after
declaration by the board that he has been duly | 18 | | elected, upon taking and
subscribing to the constitutional oath | 19 | | of office and filing same in the
office of the Fund.
| 20 | | (d) The term of office of each trustee shall begin upon | 21 | | January 1 of
the year following the year in which he is elected | 22 | | and shall continue
for a period of 5 years and until a | 23 | | successor has been elected and
qualified, or until prior | 24 | | resignation, death, incapacity or
disqualification.
| 25 | | (e) Any elected trustee (other than the annuitant trustee) | 26 | | shall be
disqualified immediately upon termination of |
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| 1 | | employment with all participating
municipalities and | 2 | | instrumentalities thereof or upon any change in status which
| 3 | | removes any such trustee from all employments within the group | 4 | | he represents.
The annuitant trustee shall be disqualified upon | 5 | | termination of his or her
annuity.
| 6 | | (f) The trustees shall fill any vacancy in the board by | 7 | | appointment,
for the period until the next election of | 8 | | trustees, or, if the remaining
term is less than 2 years, for | 9 | | the remainder of the term, and until his
successor has been | 10 | | elected and qualified.
| 11 | | (g) Trustees shall serve without compensation, but shall be
| 12 | | reimbursed for any reasonable expenses incurred in attending | 13 | | meetings of
the board and in performing duties on behalf of the | 14 | | Fund and for the
amount of any earnings withheld by any | 15 | | employing municipality or
participating instrumentality | 16 | | because of attendance at any board
meeting.
| 17 | | (h) Each trustee shall be entitled to
one vote on any and | 18 | | all actions before the board. At least 5 concurring votes
shall | 19 | | be necessary for every decision or action by the board at any | 20 | | of its
meetings. No decision or action shall become effective | 21 | | unless presented and so
approved at a regular or duly called | 22 | | special meeting of the board.
| 23 | | (Source: P.A. 95-890, eff. 8-22-08.)
| 24 | | (40 ILCS 5/7-175) (from Ch. 108 1/2, par. 7-175)
| 25 | | Sec. 7-175. Board elections.
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| 1 | | (a) During the period beginning on August 1 and ending on | 2 | | September 15
of each year the board shall accept nominations of | 3 | | candidates for election
to the trusteeships for terms beginning | 4 | | the next January 1, new
trusteeships or vacancies to be filled | 5 | | by election.
| 6 | | (b) All nominations shall be by petition. Three petitions | 7 | | for an
executive trustee shall be signed by governing bodies of | 8 | | contributing
participating municipalities or | 9 | | instrumentalities.
| 10 | | A petition for an
employee trustee shall be signed by at | 11 | | least 350 participating employees
who were participants during | 12 | | July of the current year and who, if their
employment status | 13 | | remained unchanged, would be eligible to vote for such
| 14 | | candidate at the following election.
| 15 | | A petition for an annuitant trustee shall be signed by at | 16 | | least 100 persons
who were annuitants of the Fund during July | 17 | | of the current year and who, if
their annuitant status remains | 18 | | unchanged, would be eligible to vote for the
candidate at the | 19 | | following election.
| 20 | | A petition for a police officer trustee shall be signed by | 21 | | at least 100 persons
who were participants of a fund | 22 | | established under Article 3 during July of the current year and | 23 | | who, if
their status remains unchanged, would be eligible to | 24 | | vote for the
candidate at the following election. | 25 | | A petition for a firefighter trustee shall be signed by at | 26 | | least 100 persons
who were participants of a fund established |
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| 1 | | under Article 4 during July of the current year and who, if
| 2 | | their annuitant status remains unchanged, would be eligible to | 3 | | vote for the
candidate at the following election. | 4 | | (c) A separate ballot shall be used for each class of | 5 | | trustee and the
names of all candidates properly nominated in | 6 | | petitions received by the
board shall be placed in alphabetical | 7 | | order upon the proper ballot. Where
two employee trustees are | 8 | | elected to a full term in the same year, there
shall be one | 9 | | election for the two trusteeships and the two candidates
| 10 | | getting the highest number of votes shall be elected.
| 11 | | (d) At any election, each contributing participating | 12 | | municipality and
participating instrumentality and each | 13 | | contributing participating employee
employed by such | 14 | | participating municipality or participating
instrumentality | 15 | | during September of any year, shall be entitled to vote as
| 16 | | follows:
| 17 | | 1. The governing body of each such participating | 18 | | municipality and
participating instrumentality shall have | 19 | | one vote at any election in
which an executive trustee is | 20 | | to be elected, and may cast such vote for any
candidate on | 21 | | the executive trustee ballot.
| 22 | | 2. Each participating employee shall have one vote at | 23 | | any
election in
which an employee trustee is to be elected, | 24 | | and may cast such vote for any
candidate on the employee | 25 | | trustee ballot.
| 26 | | 3. Each annuitant of the Fund shall have one vote at |
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| 1 | | any election in
which an annuitant trustee is to be | 2 | | elected, and may cast that vote for any
candidate on the | 3 | | annuitant trustee ballot.
| 4 | | 3.5. Each participant in a fund established under | 5 | | Article 3 shall have one vote at any election in which a | 6 | | police officer trustee is to be elected, and may cast such | 7 | | vote for any candidate on the police officer trustee | 8 | | ballot. | 9 | | 3.6. Each participant in a fund established under | 10 | | Article 4 shall have one vote at any election in which a | 11 | | firefighter trustee is to be elected, and may cast such | 12 | | vote for any candidate on the firefighter trustee ballot.
| 13 | | 4. A vote may be cast for a person not on the ballot by | 14 | | writing in his
or her name.
| 15 | | (e) The election shall be by ballot pursuant to the rules | 16 | | and
regulations established by the board and shall be completed | 17 | | by December 31
of the year. The results shall be entered in the | 18 | | minutes of the meeting of
the board following the tally of | 19 | | votes.
| 20 | | (f) In case of a tie vote, the candidate employed by or | 21 | | retired from the
participating municipality or participating | 22 | | instrumentality having the greatest
number of participating | 23 | | employees at the time shall be elected.
| 24 | | (Source: P.A. 89-136, eff. 7-14-95.)
| 25 | | (40 ILCS 5/7-175.1) (from Ch. 108 1/2, par. 7-175.1)
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| 1 | | Sec. 7-175.1. Election of employee , and annuitant , police | 2 | | officer, and firefighter trustees.
| 3 | | (a) The board shall prepare and send ballots and ballot | 4 | | envelopes to the
employees , and annuitants , police officers, | 5 | | and firefighters eligible to vote as of September of that
year. | 6 | | The ballots shall contain the names of all candidates in | 7 | | alphabetical
order and an appropriate place where a name may be | 8 | | written in on
the ballot.
The ballot envelope shall have on the | 9 | | outside a form of certificate stating
that the person voting | 10 | | the ballot is a police officer, firefighter, participating | 11 | | employee , or annuitant
entitled to vote.
| 12 | | (b) Employees , and annuitants, police officers, and | 13 | | firefighters, upon receipt of the ballot, shall vote the
ballot | 14 | | and place it in the ballot envelope, seal the envelope, execute | 15 | | the
certificate thereon and return the ballot to the Fund.
| 16 | | (c) The board shall set a final date for ballot return, and | 17 | | ballots
received prior to that date in a ballot envelope with a
| 18 | | properly executed certificate and properly voted, shall be | 19 | | valid ballots.
| 20 | | (d) The board shall set a day for counting the ballots and
| 21 | | name judges and clerks of election to conduct the count of | 22 | | ballots, and shall
make any rules and regulations necessary for | 23 | | the conduct of the
count.
| 24 | | (Source: P.A. 89-136, eff. 7-14-95.)
| 25 | | (40 ILCS 5/7-199.4 new) |
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| 1 | | Sec. 7-199.4. To administer the funds established under | 2 | | Articles 3 and 4. Notwithstanding any other provision of this | 3 | | Code, to control and manage investment expenditures and income, | 4 | | including interest dividends,
capital gains and other | 5 | | distributions on the investments of the funds established under | 6 | | Articles 3 and 4.
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