Chapter 40, PENSIONS

(40 ILCS 5/1-113.4a) Sec. 1-113.4a. List of additional permitted investments for Article 3 and 4 pension funds with net assets of $10,000,000 or more. (a) In addition to the items in Sections 1-113.2 and 1-113.3, a pension fund established under Article 3 or 4 that has net assets…

(40 ILCS 5/1-113.5) Sec. 1-113.5. Investment advisers and investment services for all Article 3 or 4 pension funds. (a) The board of trustees of a pension fund may appoint investment advisers as defined in Section 1-101.4. The board of any pension fund investing in common or pref…

(40 ILCS 5/1-113.6) Sec. 1-113.6. Investment policies. Every board of trustees of a pension fund shall adopt a written investment policy and file a copy of that policy with the Department of Insurance within 30 days after its adoption. Whenever a board changes its investment poli…

(40 ILCS 5/1-113.7) Sec. 1-113.7. Registration of investments; custody and safekeeping. The board of trustees may register the investments of its pension fund in the name of the pension fund, in the nominee name of a bank or trust company authorized to conduct a trust business in…

(40 ILCS 5/1-113.8) Sec. 1-113.8. Limitations on banks and savings and loan associations. A bank or savings and loan association shall not receive investment funds from a pension fund established under Article 3 or 4 of this Code, unless it has complied with the requirements esta…

(40 ILCS 5/1-113.9) Sec. 1-113.9. Illegal investments. A person registered as a dealer, salesperson, or investment adviser under the Illinois Securities Law of 1953 who sells a pension fund a security, or engages in a transaction with a pension fund, that is not authorized by thi…

(40 ILCS 5/1-114) (from Ch. 108 1/2, par. 1-114) Sec. 1-114. Liability for Breach of Fiduciary Duty. (a) Any person who is a fiduciary with respect to a retirement system or pension fund established under this Code who breaches any duty imposed upon fiduciaries by this Code, incl…

(40 ILCS 5/1-115) (from Ch. 108 1/2, par. 1-115) Sec. 1-115. Civil enforcement. A civil action may be brought by the Attorney General or by a participant, beneficiary or fiduciary in order to: (a) Obtain appropriate relief under Section 1-114 of this Code; (b) Enjoin any act or p…

(40 ILCS 5/1-116) (from Ch. 108 1/2, par. 1-116) Sec. 1-116. Federal contribution and benefit limitations. (a) This Section applies to all pension funds and retirement systems established under this Code. (a-5) All pension funds and retirement systems established under this Code …

(40 ILCS 5/1-116.1) Sec. 1-116.1. Required distributions. Notwithstanding any other provision of this Code, all pension funds and retirement systems established under Articles 2 through 18 of this Code have the authority to make any involuntary distributions that are required by …

(40 ILCS 5/1-117) Sec. 1-117. Annual earnings limitation. (a) Notwithstanding any other provision of this Code, except as provided in subsection (b), beginning on the first day of the plan year beginning in 1996, the annual earnings of a person that may be taken into account in a…

(40 ILCS 5/1-118) Sec. 1-118. Veterans' rights. (a) All pension funds and retirement systems subject to this Code shall comply with the requirements imposed on them by the federal Uniformed Services Employment and Reemployment Rights Act (P.L. 103-353). (b) All pension funds and …

(40 ILCS 5/1-119) Sec. 1-119. Qualified Illinois Domestic Relations Orders. (a) For the purposes of this Section: (1) "Alternate payee" means the spouse, former spouse, child, or other dependent of a member, as designated in a QILDRO. (2) "Death benefit" means any nonperiodic ben…

(40 ILCS 5/1-120) Sec. 1-120. Payment to trust. (a) If a person is a minor or has been determined by a court to be under a legal disability, any benefits payable to that person under this Code may be paid to the trustee of a trust created for the sole benefit of that person while…

(40 ILCS 5/1-122) Sec. 1-122. Service with the Legislative Ethics Commission or Office of the Legislative Inspector General. Notwithstanding any provision in this Code to the contrary, if a person serves as a part-time employee in any of the following positions: Legislative Inspe…

(40 ILCS 5/1-123) Sec. 1-123. Service as legal counsel. Notwithstanding any provision in this Code to the contrary, if a person is a participant under Article 18 and files a written election by July 1, 2005 with the Judges Retirement System of Illinois, then that person may serve…

(40 ILCS 5/1-125) Sec. 1-125. Prohibition on gifts. (a) For the purposes of this Section: "Gift" means a gift as defined in Section 1-5 of the State Officials and Employees Ethics Act. "Prohibited source" means a person or entity who: (i) is seeking official action (A) by the boa…

(40 ILCS 5/1-130) Sec. 1-130. No monetary gain on investments. No member or employee of the board of trustees of any retirement system, pension fund, or investment board created under this Code nor any spouse of such member or employee shall knowingly have any direct interest in …

(40 ILCS 5/1-135) Sec. 1-135. Fraud. Any person who knowingly makes any false statement or falsifies or permits to be falsified any record of a retirement system or pension fund created under this Code or the Illinois State Board of Investment in an attempt to defraud the retirem…

(40 ILCS 5/1-140) Sec. 1-140. Identification of deceased annuitants. Every pension fund or retirement system under this Code, except for a pension fund established under Article 3 or 4 of this Code, shall develop and implement, by no later than June 30, 2017, a process to identif…

(40 ILCS 5/1-145) Sec. 1-145. Contingent and placement fees prohibited. No person or entity shall retain a person or entity to attempt to influence the outcome of an investment decision of or the procurement of investment advice or services of a retirement system, pension fund, o…

(40 ILCS 5/1-150) Sec. 1-150. Approval of travel or educational mission. The expenses for travel or educational missions of a board member of a retirement system, pension fund, or investment board created under this Code, except those whose investments are restricted by Section 1…

(40 ILCS 5/1-160) (Text of Section from P.A. 102-719) Sec. 1-160. Provisions applicable to new hires. (a) The provisions of this Section apply to a person who, on or after January 1, 2011, first becomes a member or a participant under any reciprocal retirement system or pension f…

(40 ILCS 5/1-161) Sec. 1-161. Optional benefits for certain Tier 2 members under Articles 14, 15, and 16. (a) Notwithstanding any other provision of this Code to the contrary, the provisions of this Section apply to a person who first becomes a member or a participant under Artic…

(40 ILCS 5/1-162) Sec. 1-162. Optional benefits for certain Tier 2 members of pension funds under Articles 8, 9, 10, 11, 12, and 17. (a) As used in this Section: "Affected pension fund" means a pension fund established under Article 8, 9, 10, 11, 12, or 17 that the governing body…

(40 ILCS 5/1-165) Sec. 1-165. Commission on Government Forecasting and Accountability study. The Commission on Government Forecasting and Accountability shall conduct a study on the feasibility of: (1) the creation of an investment pool to supplement and enhance the investment op…

(40 ILCS 5/1-166) Sec. 1-166. Proportional annuity liability. (a) If a participant's final average salary in a participating system under the Retirement Systems Reciprocal Act, other than the General Assembly Retirement System, is used to calculate a proportional retirement annui…

(40 ILCS 5/1-167) Sec. 1-167. Prohibited disclosures. No pension fund or retirement system subject to this Code shall disclose the following information of any members or participants of any pension fund or retirement system: (1) the individual's home address (including ZIP code …

(40 ILCS 5/1A-101) Sec. 1A-101. Creation of Public Pension Division. There is created in the Department of Insurance a Public Pension Division which, under the supervision and direction of the Director of Insurance, shall exercise the powers and perform the duties and functions p…

(40 ILCS 5/1A-102) Sec. 1A-102. Definitions. As used in this Article, the following terms have the meanings ascribed to them in this Section, unless the context otherwise requires: "Accrued liability" means the actuarial present value of future benefit payments and appropriate ad…

(40 ILCS 5/1A-103) Sec. 1A-103. Rules. The Department is authorized to promulgate rules necessary for the administration and enforcement of this Code. Except as otherwise provided under this Code, these rules shall apply only to pension funds established under Article 3 or Articl…

(40 ILCS 5/1A-104) Sec. 1A-104. Examinations and investigations. (a) Except as described in the following paragraph with respect to pension funds established under Article 3 or 4 of this Code, the Division shall make periodic examinations and investigations of all pension funds e…

(40 ILCS 5/1A-105) Sec. 1A-105. Examination and subpoena of records and witnesses. The Director may administer oaths and affirmations and summon and compel the attendance before him or her and examine under oath any officer, trustee, agent, actuary, attorney, or employee connecte…

(40 ILCS 5/1A-106) Sec. 1A-106. Advisory services. The Division shall render advisory services to the pension funds on all matters pertaining to their operations and shall recommend any corrective or clarifying legislation that it may deem necessary. These recommendations shall b…

(40 ILCS 5/1A-107) Sec. 1A-107. Automation of services. The Division shall automate its operations, services, and communications to the fullest practical extent. This automation shall include, but need not be limited to, the acquisition, use, and maintenance of electronic data pr…

(40 ILCS 5/1A-108) Sec. 1A-108. Report to the Governor and General Assembly. On or before October 1 following the convening of a regular session of the General Assembly, the Division shall submit a report to the Governor and General Assembly setting forth the latest financial sta…

(40 ILCS 5/1A-108.5) Sec. 1A-108.5. Economic opportunity investments. (a) For the purposes of this Section: "Economic opportunity investment" means a qualified investment, managed passively or actively by the pension fund, that promotes economic development within the State of Il…

(40 ILCS 5/1A-109) Sec. 1A-109. Annual statements by pension funds. Each pension fund shall furnish to the Division an annual statement in a format prepared by the Division. The Division shall design the form and prescribe the content of the annual statement and, at least 60 days…

(40 ILCS 5/1A-110) Sec. 1A-110. Actuarial statements by pension funds established under Articles other than 3 or 4. (a) Each pension fund established under an Article of this Code other than Article 3 or 4 shall include as part of its annual statement a complete actuarial stateme…

(40 ILCS 5/1A-111) Sec. 1A-111. Actuarial statements by pension funds established under Article 3 or 4. (a) For each pension fund established under Article 3 or 4 of this Code, a complete actuarial statement applicable to its plan year shall be included as part of its annual stat…

(40 ILCS 5/1A-112) Sec. 1A-112. Fees. (a) Every pension fund that is required to file an annual statement under Section 1A-109 shall pay to the Department an annual compliance fee. In the case of a pension fund under Article 3 or 4 of this Code, (i) prior to the conclusion of the…

(40 ILCS 5/1A-113) Sec. 1A-113. Penalties. (a) A pension fund that fails, without just cause, to file its annual statement within the time prescribed under Section 1A-109 shall pay to the Department a penalty to be determined by the Department, which shall not exceed $100 for eac…

(40 ILCS 5/1A-201) Sec. 1A-201. Advisory Commission on Pension Benefits. (a) There is created an Advisory Commission on Pension Benefits. The Commission shall consist of 15 persons, of whom 8 shall be appointed by the Governor and one each shall be appointed by the President and …

(40 ILCS 5/2-101) (from Ch. 108 1/2, par. 2-101) Sec. 2-101. Creation of system. A retirement system is created to provide retirement annuities, survivor's annuities and other benefits for members of the General Assembly, certain elected state officials and their beneficiaries. T…

(40 ILCS 5/2-102) (from Ch. 108 1/2, par. 2-102) Sec. 2-102. Terms defined. The terms used in this Article shall have the meanings ascribed to them in Sections 2-103 through 2-116, except when the context otherwise requires. (Source: P.A. 83-1440.)

(40 ILCS 5/2-103) (from Ch. 108 1/2, par. 2-103) Sec. 2-103. System. "System": The General Assembly Retirement System. (Source: Laws 1963, p. 161.)

(40 ILCS 5/2-104) (from Ch. 108 1/2, par. 2-104) Sec. 2-104. Board. "Board": The board of trustees of the system. (Source: Laws 1963, p. 161.)

(40 ILCS 5/2-105) (from Ch. 108 1/2, par. 2-105) Sec. 2-105. Member. "Member": Members of the General Assembly of this State including persons who enter military service while a member of the General Assembly and any person serving as Governor, Lieutenant Governor, Secretary of S…

(40 ILCS 5/2-105.3) Sec. 2-105.3. Tier 1 participant; Tier 2 participant. "Tier 1 participant": A participant who first became a participant before January 1, 2011. "Tier 2 participant": A participant who first became a participant on or after January 1, 2011. (Source: P.A. 103-8…

(40 ILCS 5/2-105.4) Sec. 2-105.4. Tier 1 retiree. "Tier 1 retiree" means a former Tier 1 participant who has made the election to retire and has terminated service. (Source: P.A. 103-8, eff. 6-7-23.)