Chapter 40 — PENSIONS

(40 ILCS 5/22-504) (from Ch. 108 1/2, par. 22-504) Sec. 22-504. (Repealed). (Source: Laws 1963, p. 161. Repealed by P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/22-505) (from Ch. 108 1/2, par. 22-505) Sec. 22-505. (Repealed). (Source: P.A. 87-757. Repealed by P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/22-506) (from Ch. 108 1/2, par. 22-506) Sec. 22-506. (Repealed). (Source: P.A. 83-334. Repealed by P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/22-507) (from Ch. 108 1/2, par. 22-507) Sec. 22-507. (Repealed). (Source: P.A. 77-2560. Repealed by P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/22-508) (from Ch. 108 1/2, par. 22-508) Sec. 22-508. (Repealed). (Source: Laws 1963, p. 161. Repealed P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/22-509) (from Ch. 108 1/2, par. 22-509) Sec. 22-509. (Repealed). (Source: P.A. 81-691. Repealed by P.A. 90-507, eff. 8-22-97.)

(40 ILCS 5/22-601) (from Ch. 108 1/2, par. 22-601) Sec. 22-601. Preservation of pension rights. The provisions of "An Act authorizing municipal corporations to preserve civil service and pension rights of their employees inducted into or enlisting in the land or naval forces of t…

(40 ILCS 5/22-701) (from Ch. 108 1/2, par. 22-701) Sec. 22-701. Employee with service as elected official. (a) In addition to all the other powers now granted by law, the city council of any city of more than 500,000 inhabitants shall, by ordinance, provide for the payment of a p…

(40 ILCS 5/22-803) Sec. 22-803. Commission on Government Forecasting and Accountability. The Illinois State Board of Investment and all pension funds and retirement systems subject to this Code shall cooperate with the Commission on Government Forecasting and Accountability and s…

(40 ILCS 5/22-901) (from Ch. 108 1/2, par. 22-901) Sec. 22-901. General provisions and savings clause. The provisions of Article 1 and Article 23 of this Code apply to each Division of this Article as though such provisions were fully set forth in each Division of this Article as…

(40 ILCS 5/22-901.1) (from Ch. 108 1/2, par. 22-901.1) Sec. 22-901.1. Actuarial tables defined. Tabular listings of assumed rates of decrement representing such factors as death, disability, separation from service, and ages of retirement, according to sex and ages of members of …

(40 ILCS 5/22-901.2) (from Ch. 108 1/2, par. 22-901.2) Sec. 22-901.2. Adjustment of retirement annuity under reversionary annuity option. Any member or participant of a pension fund or retirement system covered by the provisions of this Code who elects a reversionary annuity opti…

(40 ILCS 5/22A-101) (from Ch. 108 1/2, par. 22A-101) Sec. 22A-101. Establishment. The Illinois State Board of Investment is created with authority to manage, invest and reinvest, the reserves, funds, assets, securities and moneys of any pension fund, as provided in this Article, …

(40 ILCS 5/22A-102) (from Ch. 108 1/2, par. 22A-102) Sec. 22A-102. Definitions. For the purposes of this Article, the following words and phrases shall have the meaning ascribed to them unless the context requires otherwise. (Source: P.A. 76-1829.)

(40 ILCS 5/22A-103) (from Ch. 108 1/2, par. 22A-103) Sec. 22A-103. "Board": The Illinois State Board of Investment. (Source: P.A. 76-1829.)

(40 ILCS 5/22A-104) (from Ch. 108 1/2, par. 22A-104) Sec. 22A-104. Retirement System. "Retirement System": Any pension fund or retirement system governed by Articles 1 to 18, inclusive, of the "Illinois Pension Code", approved March 18, 1963, as amended. (Source: P.A. 77-611.)

(40 ILCS 5/22A-105) (from Ch. 108 1/2, par. 22A-105) Sec. 22A-105. Pension Fund. "Pension Fund": The reserves, funds, assets, securities, monies and property of any pension fund or retirement system. (Source: P.A. 77-611.)

(40 ILCS 5/22A-105.1) (from Ch. 108 1/2, par. 22A-105.1) Sec. 22A-105.1. "Education fund": The monies, funds, reserves, assets, securities, and property of the Illinois Bank Examiners' Education Foundation held in the Illinois Bank Examiners' Education Fund in the State Treasury.…

(40 ILCS 5/22A-106) (from Ch. 108 1/2, par. 22A-106) Sec. 22A-106. "Manage": To invest, reinvest, exchange and to perform all investment functions with regard to reserves, funds, assets, securities and moneys which the board is authorized to invest, and to preserve and protect su…

(40 ILCS 5/22A-107) (from Ch. 108 1/2, par. 22A-107) Sec. 22A-107. Invest. "Invest": To acquire, invest, reinvest, exchange or retain property held for a pension fund or education fund, sell and manage the reserves, funds, securities, moneys or assets of any pension fund, retirem…

(40 ILCS 5/22A-108) (from Ch. 108 1/2, par. 22A-108) Sec. 22A-108. Investment. "Investment": Any property acquired by the board for a pension fund, any retirement system or education fund. (Source: P.A. 84-1127.)

(40 ILCS 5/22A-108.1) (from Ch. 108 1/2, par. 22A-108.1) Sec. 22A-108.1. Investment Advisor: Any person or business entity which provides investment advice to the Board on a personalized basis and with an understanding of the policies and goals of the Board. "Investment Advisor" …

(40 ILCS 5/22A-109) (from Ch. 108 1/2, par. 22A-109) Sec. 22A-109. Membership of board. The board shall consist of the following members: (1) Five trustees appointed by the Governor with the advice and consent of the Senate who may not hold an elective State office. (2) The Treas…

(40 ILCS 5/22A-110) (from Ch. 108 1/2, par. 22A-110) Sec. 22A-110. Administration. The board shall appoint a director to administer the affairs of the board subject to and under its supervision and fix his compensation. The Board may appoint investment officers and fix their comp…

(40 ILCS 5/22A-111) (from Ch. 108 1/2, par. 22A-111) Sec. 22A-111. The Board shall manage the investments of any pension fund, retirement system, or education fund for the purpose of obtaining a total return on investments for the long term. It also shall perform such other funct…

(40 ILCS 5/22A-111.1) (from Ch. 108 1/2, par. 22A-111.1) Sec. 22A-111.1. Public Employees Deferred Compensation Plan. The Board shall also have the responsibilities imposed on it by Article 24 of this Act in relation to a deferred compensation plan for public employees. (Source: …

(40 ILCS 5/22A-112) (from Ch. 108 1/2, par. 22A-112) Sec. 22A-112. Investment authority. The board shall have the authority to invest funds, subject to the requirements and restrictions set forth in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115 of this Code. No …

(40 ILCS 5/22A-113) (from Ch. 108 1/2, par. 22A-113) Sec. 22A-113. Transfer of securities and investment functions. (a) As soon as possible or practicable following the enactment of this Article and prior to July 1, 1970, the trustees of the State Employees' Retirement System, th…

(40 ILCS 5/22A-113.1) (from Ch. 108 1/2, par. 22A-113.1) Sec. 22A-113.1. Investable funds. Each retirement system under the management of the Illinois State Board of Investment shall report to the board from time to time the amounts of funds available for investment. These amount…

(40 ILCS 5/22A-113.2) (from Ch. 108 1/2, par. 22A-113.2) Sec. 22A-113.2. Custodian. The securities, funds and other assets transferred to the Illinois State Board of Investment or otherwise acquired by the board shall be placed in the custody of the board's custodian. The custodi…

(40 ILCS 5/22A-113.3) (from Ch. 108 1/2, par. 22A-113.3) Sec. 22A-113.3. Investable funds of education foundation. The Illinois Bank Examiners' Education Foundation shall report to the board from time to time the amounts of monies available for investment by the board. These amou…

(40 ILCS 5/22A-113.4) (Section scheduled to be repealed on January 1, 2027) Sec. 22A-113.4. Proxy voting. (a) In this Section, "fiduciary" has the meaning given to that term in Section 1-101.2. (b) Notwithstanding the Board's investment authority, and upon the affirmative vote of…

(40 ILCS 5/22A-113.5) Sec. 22A-113.5. Fiduciary report. On or before September 1, 2023, and annually thereafter, the Board shall publish its guidelines for voting proxy ballots and a detailed report on its website describing how the Board is considering sustainability factors as …

(40 ILCS 5/22A-114) (from Ch. 108 1/2, par. 22A-114) Sec. 22A-114. Accounting. In the management of pension and education funds the board: (1) may, for investment purposes, commingle all or a part of the invested assets of one or more pension or education funds under its jurisdic…

(40 ILCS 5/22A-115) (from Ch. 108 1/2, par. 22A-115) Sec. 22A-115. Audits and reports. At least annually, the books, records, accounts and securities of the board shall be audited by a certified public accountant designated by the Auditor General of the State. The audit opinion s…

(40 ILCS 5/22A-116) (from Ch. 108 1/2, par. 22A-116) Sec. 22A-116. (Repealed). (Source: P.A. 76-1829. Repealed by P.A. 89-657, eff. 8-14-96.)

(40 ILCS 5/22B-101) Sec. 22B-101. Establishment. The Police Officers' Pension Investment Fund is created with authority to manage the reserves, funds, assets, securities, properties, and moneys of the police pension funds created pursuant to Article 3 of this Code, all as provide…

(40 ILCS 5/22B-102) Sec. 22B-102. Definitions. For the purposes of this Article, the following words and phrases shall have the meaning ascribed to them unless the context requires otherwise. (Source: P.A. 101-610, eff. 1-1-20.)

(40 ILCS 5/22B-103) Sec. 22B-103. Fund. "Fund" means the Police Officers' Pension Investment Fund. (Source: P.A. 101-610, eff. 1-1-20.)

(40 ILCS 5/22B-104) Sec. 22B-104. Transferor pension fund. "Transferor pension fund" means any pension fund established pursuant to Article 3 of this Code. (Source: P.A. 101-610, eff. 1-1-20.)

(40 ILCS 5/22B-105) Sec. 22B-105. Participating pension fund. "Participating pension fund" means any pension fund established pursuant to Article 3 of this Code that has transferred securities, funds, assets, and moneys, and responsibility for custody and control of those securit…

(40 ILCS 5/22B-106) Sec. 22B-106. Pension fund assets. "Pension fund assets" means the reserves, funds, assets, securities, and moneys of any transferor pension fund. (Source: P.A. 101-610, eff. 1-1-20.)

(40 ILCS 5/22B-107) Sec. 22B-107. Invest. "Invest" means to acquire, invest, reinvest, exchange, or retain pension fund assets of the transferor pension funds and to sell and manage the reserves, funds, securities, moneys, or assets of the transferor pension fund, all in accordan…

(40 ILCS 5/22B-108) Sec. 22B-108. Investment advisor. "Investment advisor" means any person or business entity that provides investment advice to the Board on a personalized basis and with an understanding of the policies and goals of the Board. "Investment advisor" does not incl…

(40 ILCS 5/22B-112) Sec. 22B-112. Transition period. "Transition period" means the period immediately following the effective date of this amendatory Act of the 101st General Assembly during which pension fund assets, and responsibility for custody and control of those assets, wi…

(40 ILCS 5/22B-113) Sec. 22B-113. Illinois Municipal League. "Illinois Municipal League" means the unincorporated, nonprofit, nonpolitical association of Illinois cities, villages, and incorporated towns described in Section 1-8-1 of the Illinois Municipal Code. (Source: P.A. 101…

(40 ILCS 5/22B-114) Sec. 22B-114. Purpose, establishment, and governance. The Fund is established to consolidate the transferor pension funds to streamline investments and eliminate unnecessary and redundant administrative costs, thereby ensuring more money is available to fund p…

(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 o…

(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 sh…

(40 ILCS 5/22B-117) Sec. 22B-117. Meetings of the board. (a) The transition board and the permanent board shall each meet at least quarterly and otherwise upon written request of either the Chairperson or 3 other members. The Chairperson shall preside over meetings of the board. …