IL SB3162

Amends the Illinois Pension Code to require retirement systems and pension funds to use competitive procurement processes substantially similar to the Illinois Procurement Code when selecting investment advisers and consultants, with exceptions for sole source, emergency, and contracts under $20,000 with one-year or less duration.

Mandates that investment adviser and consultant contracts include written acknowledgment of fiduciary status, full disclosure of direct and indirect fees and compensation, quarterly written reports with net returns after all fees, and descriptions of subcontractors, qualifications needed, contract duration, and cost measurement methods.

Limits investment consultant contracts to a maximum duration of 5 years with no renewals or extensions allowed; consultants may compete for new contracts after their current contract ends.

Requires all investment advisers and consultants currently providing services to disclose within 60 days all direct and indirect fees, commissions, and compensation, with prompt updates when payments are modified or additional payments made.

Creates a separate category for "qualified fund-of-fund management services" that requires posting descriptions of fund-of-funds investments on pension system websites, including investment adviser name, total investment commitment, and board-approved disclosure of selection factors.