IL SB3748

Amends the Illinois Pension Code to define "qualified manager of emerging investment managers services" and establish procedures for retirement systems and pension funds to contract with such managers.

Exempts contracts for investment services with emerging investment managers provided through qualified managers from the standard competitive bidding process required for other investment services.

Excludes qualified managers of emerging investment managers services from the definition of "subcontractor" in investment service contracts, so they do not trigger disclosure requirements.

Allows pension boards to directly appoint emerging investment managers based on written recommendations from qualified managers if the emerging manager has provided services in the multimanager portfolio for at least 24 months.

Requires qualified managers of emerging investment managers services to comply with written contract requirements including fiduciary acknowledgment, fee disclosure, quarterly reporting, and descriptions of services and qualifications; effective January 1, 2021.