HB1571 Summary

• Beginning January 1, 2020, municipalities with downstate police or firefighter pension funds exceeding a threshold amount (3 months of current liabilities) can require those funds to transfer investment authority and assets to the Illinois Municipal Retirement Fund (IMRF).

• Upon transfer completion, the investment authority of the pension fund board of trustees terminates, and IMRF assumes all investment management responsibilities while the fund retains control over benefit payments and non-investment fund management.

• Modifies the Property Tax Extension Limitation Law to exclude special purpose extensions for pension fund contributions that transfer investment authority to IMRF from the definition of "aggregate extension" beginning January 1, 2021.

• Requires the Commission on Government Forecasting and Accountability to analyze the merits and feasibility of transitioning all downstate police and firefighter pension funds' investment authority to IMRF, with a report due by December 31, 2020.

• Updates trustee training requirements to mandate 32 hours of initial certification training within 2 years of taking office, with at least 8 hours covering fiduciary duties and trustee ethics, plus 16 hours of continuing education every 2 years.