Illinois Pension Law Change

Illinois Pension Law Change

February 4, 2015

Beginning January 1st, 2015, firms responding to an Illinois Pension Fund’s Manager Search RFP must report on the their fund’s current commitment to diversity as exhibited by:
  1. Number of the firm’s senior staff and investment staff that are women, persons of color or disabled persons;
  2. The number of “contracts” with women, persons of color or disabled persons hired to deliver for professional services including those who are employed by majority-owned companies or firms;
  3. Any programs or initiatives undertaken by the firm to employ and/or advance within the firm: women, persons of color or disabled persons; and/or programs designed to promote women, persons of color or disabled persons or professional service providers within the financial services industry.
 Several items of note:
  • This report is only for the current fund for which you are fundraising.  Do not include data for prior Assets Under Management and do not include portfolio company data nor management company expenses.
  • “Contract” in this context is a very broad term (“contracts written or oral”) intended to capture virtually all professional services related to the business of raising, investing and returning capital. 
  • Funds are not considered by the pension fund law to be “investment advisors”.
  • The Illinois pension funds believe that this type of reporting will become more common across the country.
  • This change does not currently require an annual update on commitment to diversity but some pension funds may request an annual report.  It is highly likely that the pension fund will be amended at a future date to include an annual report and more detailed reporting. 
Feel free to contact Maura O'Hara if you’d like to discuss this change and review the proposed reporting document developed with the pension funds for this purpose.