IL SB0437

Requires Illinois retirement systems and pension funds to use competitive procurement processes similar to the Illinois Procurement Code when selecting investment advisers and consultants, with exceptions for sole source, emergency, and other limited circumstances.

Mandates that boards adopt and post investment services policies within 60 days, file them with the Illinois Procurement Policy Board, and publish all procurement exceptions on their websites with the authorizing person's name and justification.

Requires written contracts with investment advisers and consultants that include fiduciary acknowledgment, full fee disclosure, quarterly performance reports with net returns, identification of subcontractors, and descriptions of services, qualifications, and contract terms.

Limits consultant contracts to a maximum of 5 years with no renewals or extensions allowed, though consultants may compete for new contracts after their term ends.

Requires existing investment advisers to disclose all direct and indirect fees and compensation within 60 days and mandates that all investment service contracts be publicly posted on the system's website with the contractor name, total fees, and selection factors.