Update on HB 6292 amending the Illinois Pension Code

Update on HB 6292 amending the Illinois Pension Code

 

On May 24th, 2016, Senator Daniel Biss convened a meeting with Illinois pension funds and other interested parties to discuss HB6292 which amends the pension code to require public disclosure of elements of Alternative Investment Limited Partner Agreement and Fees, Expenses for any investments made by the Illinois Pension Funds.   IVCA’s government affairs consultant, Dave Stricklin, attended the meeting.

As a result of the concerns expressed by the IVCA and pension funds and in the interest of creating a bill with minimal unintended consequences, Senator Biss amended the bill to delay implementation until February 1, 2019 and to create the “Investment Transparency Task Force”.  This task force will study the best available practices and make recommendations for disclosure of terms, fees & expenses between pension fund and alternative investment funds. 

This task force will be comprised of:

  • The Executive Directors of Illinois Pension Funds (or their designee)
  • Four persons appointed by each of the Legislative Leaders
  • The Illinois Treasurer (Michael Frerichs)
  • Three individuals appointed by the Illinois Treasurer representing:
    • The interests of external managers
    • The interests of public retirement systems’ beneficiaries
    • The interests of taxpayers

The Investment Transparency Task Force must report its findings and recommendations to the General Assembly no later than January 15, 2018.