HB4412 Summary

• Board trustees of Illinois retirement systems and pension funds may appoint investment managers and allocate fiduciary duties, but certain pension fund boards cannot transfer investment authority without approval from both contributors and pensioners in separate elections held at least 30 days after board adoption.

• Investment authority of public employee retirement systems is declared an exclusive state matter, preempting any concurrent exercise of power by home rule units.

• Retirement systems and pension funds must adopt policies by January 1, 2010 to set quantifiable goals for utilizing emerging investment managers (managing $10M-$10B in assets) that are minority-owned, women-owned, or disability-owned businesses across all asset classes.

• Each system and fund must establish a policy to increase racial, ethnic, and gender diversity of fiduciaries, consultants, and senior staff, with best efforts to ensure senior administrative staff racial and ethnic makeup matches membership composition.

• Beginning January 1, 2016, systems and funds have aspirational goals to use emerging investment managers for at least 20% of total funds under management and ensure at least 20% of investment advisors are minorities, women, or persons with disabilities.