Public Act 103-0506
 
SB2100 EnrolledLRB103 28494 RPS 54875 b


  
    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 22B-115 and 22B-116 as follows:
 
    (40 ILCS 5/22B-115)
    Sec. 22B-115. Board of Trustees of the Fund.
    (a)  No later than one month after the effective date of 
this amendatory Act of the 101st General Assembly or as soon 
thereafter as may be practicable, the Governor shall appoint, 
by and with the advice and consent of the Senate, a transition 
board of trustees consisting of 9  members as follows:
        (1) three members representing municipalities who are 
    mayors, presidents, chief executive officers, chief 
    financial officers, or other officers, executives, or 
    department heads of municipalities and appointed from 
    among candidates recommended by the Illinois Municipal 
    League;
        (2) three members representing participants and who 
    are participants, 2 of whom shall be appointed from among 
    candidates recommended by a statewide fraternal 
    organization representing more than 20,000 active and 
    retired police officers in the State of Illinois, and one 
    of whom shall be appointed from among candidates 
    recommended by a benevolent association representing sworn 
    police officers in the State of Illinois;
        (3) two members representing beneficiaries and who are 
    beneficiaries, one of whom shall be appointed from among 
    candidates recommended by a statewide fraternal 
    organization representing more than 20,000 active and 
    retired police officers in the State of Illinois, and one 
    of whom shall be appointed from among candidates 
    recommended by a benevolent association representing sworn 
    police officers in the State of Illinois; and
        (4) one member who is a representative of the Illinois 
    Municipal League.
    The transition board members shall serve until the initial 
permanent board members are elected and qualified.
    The transition board of trustees shall select the 
chairperson of the transition board of trustees from among the 
trustees for the duration of the transition board's tenure.
    (b) The permanent board of trustees shall consist of 9 
members as follows:
        (1) Three members who are mayors, presidents, chief 
    executive officers, chief financial officers, or other 
    officers, executives, or department heads of 
    municipalities that have participating pension funds and 
    are elected by the mayors and presidents of municipalities 
    that have  participating pension funds.
        (2) Three members who are participants of  
    participating pension funds and are elected by the 
    participants of  participating pension funds.
        (3) Two members who are beneficiaries of    participating 
    pension funds and are elected by the beneficiaries of  
    participating pension funds.
        (4) One member recommended  by the  Illinois Municipal 
    League who shall be appointed by the Governor with the 
    advice and consent of the Senate.
    The permanent board of trustees shall select the 
chairperson of the permanent board of trustees from among the 
trustees for a term of 2 years. The holder of the office of 
chairperson shall alternate between a person elected or 
appointed under item (1) or (4) of this subsection (b) and a 
person elected under item (2) or (3) of this subsection (b).
    (c) Each trustee shall qualify by taking an oath of office 
before the Secretary of State or the legal counsel of the fund 
stating that he or she will diligently and honestly administer 
the affairs of the board and will not violate or knowingly 
permit the violation of any provision of this Article.
    (d) Trustees shall receive no salary for service on the 
board but shall be reimbursed for travel expenses incurred 
while on business for the board according to Article 1 of this 
Code and rules adopted by the board the standards in effect for 
members of the Commission on Government Forecasting and 
Accountability.
    A municipality employing a police officer who is an 
elected or appointed trustee of the board must allow 
reasonable time off with compensation for the police officer 
to conduct official business related to his or her position on 
the board, including time for travel. The board shall notify 
the municipality in advance of the dates, times, and locations 
of this official business. The Fund shall timely reimburse the 
municipality for the reasonable costs incurred that are due to 
the police officer's absence. 
    (e) No trustee shall have any interest in any brokerage 
fee, commission, or other profit or gain arising out of any 
investment directed by the board. This subsection does not 
preclude ownership by any member of any minority interest in 
any common stock or any corporate obligation in which an 
investment is directed by the board. 
    (f) Notwithstanding any provision or interpretation of law 
to the contrary, any member of the transition board may also be 
elected or appointed as a member of the permanent board.
    Notwithstanding any provision or interpretation of law to 
the contrary, any trustee of a fund established under Article 
3 of this Code may also be appointed as a member of the 
transition board or elected or appointed as a member of the 
permanent board.
    The restriction in Section 3.1 of the Lobbyist 
Registration Act shall not apply to a member of the transition 
board appointed pursuant to item (4) of subsection (a) or to a 
member of the permanent board appointed pursuant to item (4) 
of subsection (b). 

(Source: P.A. 101-610, eff. 1-1-20.)
 
    (40 ILCS 5/22B-116)
    Sec. 22B-116. Conduct and administration of elections; 
terms of office.
    (a) For the election of the permanent trustees, the 
transition board shall administer the initial elections and 
the permanent board shall administer all subsequent elections. 
Each board shall develop and implement such procedures as it 
determines to be appropriate for the conduct of such 
elections. For the purposes of obtaining information necessary 
to conduct elections under this Section, participating pension 
funds shall cooperate with the Fund.
    (b) All nominations for election shall be by petition. 
Each petition for a trustee shall be executed as follows:
        (1) for trustees to be elected by the mayors and 
    presidents of municipalities that have  participating 
    pension funds, by at least  20 such mayors and presidents;
        (2) for trustees to be elected by participants, by at 
    least 400 participants; and
        (3) for trustees to be elected by  beneficiaries, by at 
    least  100 beneficiaries.
    (c) A separate ballot shall be used for each class of 
trustee. The board shall prepare and send ballots and ballot 
envelopes to the participants and beneficiaries eligible to 
vote in accordance with rules adopted by the board.  The 
ballots shall contain the names of all candidates in 
alphabetical order. The ballot envelope shall have on the 
outside a form of certificate stating that the person voting 
the ballot is a participant or beneficiary entitled to vote.
    Participants and beneficiaries, upon receipt of the 
ballot, shall vote the ballot and place it in the ballot 
envelope, seal the envelope, execute the certificate thereon, 
and return the ballot to the Fund.
    The board shall set a final date for ballot return, and 
ballots received prior to that date in a ballot envelope with a 
properly executed certificate and  properly voted shall be 
valid ballots.
    The board shall set a day for counting the ballots and name 
judges and clerks of election to conduct the count of ballots 
and shall make any rules necessary for the conduct of the 
count. 
    The candidate or candidates receiving the highest number 
of votes for each class of trustee shall be elected.  In the 
case of a tie vote, the winner shall be determined in 
accordance with procedures developed by the Department of 
Insurance.
    In lieu of conducting elections via mail balloting as 
described in this Section, the board may instead adopt rules 
to provide for elections to be carried out solely via Internet 
balloting or phone balloting.  Nothing in this Section 
prohibits the Fund from contracting with a third party to 
administer the election in accordance with this Section. 
    (d) At any election, voting shall be as follows:
        (1) Each person authorized to vote for an elected 
    trustee may cast one vote for each related position for 
    which such person is entitled to vote and may cast such 
    vote for any candidate or candidates on the ballot for 
    such trustee position.
        (2) If only one candidate for each position is 
    properly nominated in petitions received, that candidate 
    shall be deemed the winner and no election under this 
    Section shall be required.
        (3) The results shall be entered in the minutes of the 
    first meeting of  the board following the tally of votes.
    (e) The initial election for permanent trustees shall be 
held and the permanent board shall be seated no later than 12 
months after the effective date of this amendatory Act of the 
101st General Assembly.  Each subsequent election shall be held 
no later than 30  days prior to the end of the term of the 
incumbent trustees.
    (f) The elected trustees shall each serve for terms of 4 
years commencing on the first business day of the first month 
after election; except that the terms of office of the 
initially elected trustees shall be as follows:
        (1) one trustee elected pursuant to item (1) of 
    subsection (b) of Section 22B-115 shall serve for a term 
    of 2 years and 2 trustees elected pursuant to item (1) of 
    subsection (b) of Section 22B-115 shall serve for a term 
    of 4 years;
        (2) two trustees elected pursuant to item (2) of 
    subsection (b) of Section 22B-115 shall serve for a term 
    of 2 years and one trustee elected pursuant to item (2) of 
    subsection (b) of Section 22B-115 shall serve for a term 
    of 4 years; and
        (3)  one trustee elected pursuant to item (3) of 
    subsection (b) of Section 22B-115 shall serve for a term 
    of 2 years and one trustee elected pursuant to item (3) of 
    subsection (b) of Section 22B-115 shall serve for a term 
    of 4 years.
    (g) The trustee appointed pursuant to item (4) of 
subsection (b) of Section 22B-115 shall serve for a term of 2 
years commencing on the first business day of the first month 
after the election of the elected trustees.
    (h) A member of the board who was elected pursuant to item 
(1) of subsection (b) of Section 22B-115 who ceases to serve as 
a mayor, president, chief executive officer, chief financial 
officer, or other officer, executive, or department head of a 
municipality that has a participating pension fund shall not 
be eligible to serve as a member of the board and his or her 
position shall be deemed vacant. A member of the board who was 
elected by the participants of participating pension funds who 
ceases to be a participant may serve the remainder of his or 
her elected term.
    For a vacancy of a trustee under item (1) of subsection (b) 
of Section 22B-115, the vacancy shall be filled by appointment 
by the board for the unexpired term from a list of candidates 
recommended by the trustees under item (1) of subsection (b) 
of Section 22B-115. The list of candidates shall be compiled 
and presented to the board by the executive director of the 
Fund. 
    For a vacancy of a trustee under item (2) of subsection (b) 
of Section 22B-115, the vacancy shall be filled by appointment 
by the board for the unexpired term from a list of candidates 
recommended by the trustees under item (2) of subsection (b) 
of Section 22B-115. The list of candidates shall be compiled 
and presented to the board by the executive director of the 
Fund. 
    For a vacancy of a trustee under item (3) of subsection (b) 
of Section 22B-115, the vacancy shall be filled by appointment 
by the board for the unexpired term from a list of candidates 
recommended by the trustees under item (3) of subsection (b) 
of Section 22B-115. The list of candidates shall be compiled 
and presented to the board by the executive director of the 
Fund. 
    A trustee appointed to fill the vacancy of an elected 
trustee shall serve until a successor is elected. Special 
elections to fill the remainder of an unexpired term vacated 
by an elected trustee shall be held concurrently with and in 
the same manner as the next regular election for an elected 
trustee position. 
    For a vacancy of an elected trustee occurring with an 
unexpired term of 6 months or more, an election shall be 
conducted for the vacancy in accordance with Section 22B-115 
and this Section. 
    For a vacancy of an elected trustee occurring with an 
unexpired term of less than 6 months, the vacancy shall be 
filled by appointment by the board for the unexpired term as 
follows: a vacancy of a member elected pursuant to item (1) of 
subsection (b) of Section 22B-115 shall be filled by a mayor, 
president, chief executive officer, chief financial officer, 
or other officer, executive, or department head of a 
municipality that has a participating pension fund; a vacancy 
of a member elected pursuant to item (2) of subsection (b) of 
Section 22B-115 shall be filled by a participant of a 
participating pension fund; and a vacancy of a member elected 
under item (3) of subsection (b) of Section 22B-115 shall be 
filled by a beneficiary of a participating pension fund.
    Vacancies among the appointed trustees shall be filled for 
unexpired terms by appointment in like manner as for the 
original appointments. 

(Source: P.A. 101-610, eff. 1-1-20.)

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

Effective Date:  8/4/2023