IL SB3717

Prohibits Illinois pension systems from investing in fossil fuel companies, defined as the 200 largest companies with fossil fuel reserves, major coal power plant owners, and companies deriving over 20% of revenue from fossil fuel activities.

Requires pension systems to divest existing fossil fuel holdings by January 1, 2029, and adopt updated investment policies within 30 days to comply with the prohibition.

Restricts indirect investments in fossil fuels by requiring pension boards to ensure investment vehicles have no more than 2% of assets in coal, oil, or gas producers, effective one year after the law takes effect.

Mandates quarterly public disclosure of all pension system holdings in public markets and private equity, and requires annual reports on environmental, social, and governance investment policies beginning January 1, 2025.

Applies to all Illinois state pension funds (GARS, SERS, SURS, TRS, JRS), the Illinois Municipal Retirement Fund (IMRF), and four Chicago pension funds (MEABF, LABF, Police, and Fire).