IL HB1576

Creates two new Investment Boards—Downstate Police Pension Investment Board and Downstate Firefighter Pension Investment Board—to centrally manage investment assets for eligible downstate police and firefighter pension funds exceeding a threshold of 3 months' current liabilities.

Transfers investment authority and assets from individual pension fund boards to these Investment Boards, while pension funds retain control over non-investment operational and administrative functions.

Reduces trustee training requirements from 32 hours to 8 hours for initial certification and from 16 hours to 4 hours for annual continuing education, with training funded by pension funds.

Changes all downstate police and firefighter pension fund fiscal years to May 1–April 30 by April 30, 2020, and doubles the annual compliance fee paid to the Department of Insurance from 0.02% to 0.04% of assets (capped at $16,000).

Establishes penalties up to $2,000 per day for pension funds failing to comply with asset transfer and investment-related provisions within 15 days of notice from the Department of Insurance.