104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB2282 Introduced 2/7/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: New Act Creates the Fiduciary Oversight Agency Act. Establishes the Fiduciary Oversight Agency within the Department of Insurance. Provides that the Agency shall be responsible for monitoring the operations of all public sector retirement plans in Illinois, including pensions and supplemental retirement plans, to ensure compliance with State laws and fiduciary standards. Grants the Agency the authority to enforce compliance with fiduciary standards and Illinois laws relating to public sector retirement plans through administrative sanctions, penalties, and corrective orders; conduct audits, investigations, and reviews of retirement plans, plan administrators, and other fiduciaries to ensure compliance with State laws and fiduciary standards; and initiate civil or administrative proceedings to address violations of fiduciary standards and enforce corrective actions or penalties as appropriate. Establishes reporting requirements for the Agency. LRB104 09619 BAB 19684 b A BILL FOR 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB2282 Introduced 2/7/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED: New Act New Act Creates the Fiduciary Oversight Agency Act. Establishes the Fiduciary Oversight Agency within the Department of Insurance. Provides that the Agency shall be responsible for monitoring the operations of all public sector retirement plans in Illinois, including pensions and supplemental retirement plans, to ensure compliance with State laws and fiduciary standards. Grants the Agency the authority to enforce compliance with fiduciary standards and Illinois laws relating to public sector retirement plans through administrative sanctions, penalties, and corrective orders; conduct audits, investigations, and reviews of retirement plans, plan administrators, and other fiduciaries to ensure compliance with State laws and fiduciary standards; and initiate civil or administrative proceedings to address violations of fiduciary standards and enforce corrective actions or penalties as appropriate. Establishes reporting requirements for the Agency. LRB104 09619 BAB 19684 b LRB104 09619 BAB 19684 b A BILL FOR
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB2282 Introduced 2/7/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
New Act New Act
New Act
Creates the Fiduciary Oversight Agency Act. Establishes the Fiduciary Oversight Agency within the Department of Insurance. Provides that the Agency shall be responsible for monitoring the operations of all public sector retirement plans in Illinois, including pensions and supplemental retirement plans, to ensure compliance with State laws and fiduciary standards. Grants the Agency the authority to enforce compliance with fiduciary standards and Illinois laws relating to public sector retirement plans through administrative sanctions, penalties, and corrective orders; conduct audits, investigations, and reviews of retirement plans, plan administrators, and other fiduciaries to ensure compliance with State laws and fiduciary standards; and initiate civil or administrative proceedings to address violations of fiduciary standards and enforce corrective actions or penalties as appropriate. Establishes reporting requirements for the Agency.
LRB104 09619 BAB 19684 b LRB104 09619 BAB 19684 b
LRB104 09619 BAB 19684 b
A BILL FOR
SB2282LRB104 09619 BAB 19684 b SB2282 LRB104 09619 BAB 19684 b
SB2282 LRB104 09619 BAB 19684 b
1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the
5 Fiduciary Oversight Agency Act.
6 Section 5. Findings. The General Assembly finds that:
7 (1) Public sector pensions and retirement plans are
8 critical to the financial security of a significant
9 portion of the State's population. Numerous Illinois
10 residents depend on public sector retirement plans,
11 including pensions and supplemental plans, for their
12 retirement security.
13 (2) The State's public pension system holds hundreds
14 of billions of dollars in assets, which must be carefully
15 managed to ensure long-term stability. The Illinois
16 pension system is one of the largest in the nation, with an
17 estimated $400,000,000,000 in unfunded liabilities,
18 underscoring the importance of sound fiduciary management
19 and oversight.
20 (3) Staying compliant with State laws and up-to-date
21 with evolving regulations is crucial to safeguarding the
22 integrity and trust of these retirement plans. Ensuring
23 that public sector retirement plans adhere to fiduciary
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 SB2282 Introduced 2/7/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
New Act New Act
New Act
Creates the Fiduciary Oversight Agency Act. Establishes the Fiduciary Oversight Agency within the Department of Insurance. Provides that the Agency shall be responsible for monitoring the operations of all public sector retirement plans in Illinois, including pensions and supplemental retirement plans, to ensure compliance with State laws and fiduciary standards. Grants the Agency the authority to enforce compliance with fiduciary standards and Illinois laws relating to public sector retirement plans through administrative sanctions, penalties, and corrective orders; conduct audits, investigations, and reviews of retirement plans, plan administrators, and other fiduciaries to ensure compliance with State laws and fiduciary standards; and initiate civil or administrative proceedings to address violations of fiduciary standards and enforce corrective actions or penalties as appropriate. Establishes reporting requirements for the Agency.
LRB104 09619 BAB 19684 b LRB104 09619 BAB 19684 b
LRB104 09619 BAB 19684 b
A BILL FOR
New Act
LRB104 09619 BAB 19684 b
SB2282 LRB104 09619 BAB 19684 b
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1 standards and legal requirements promotes transparency,
2 prevents mismanagement, and protects the interests of plan
3 beneficiaries.
4 Section 10. Purpose. The purpose of this Act is to
5 establish a Fiduciary Oversight Agency tasked with monitoring
6 and reviewing public sector retirement plans, including both
7 pension and supplemental plans (such as 457 plans), to ensure
8 compliance with State laws and fiduciary standards. The Agency
9 shall also have enforcement authority to address any
10 noncompliance with applicable laws and standards.
11 Section 15. Definitions. As used in this Act:
12 "Fiduciary Oversight Agency" or "the Agency" means the
13 agency established by this Act within the Department of
14 Insurance with responsibility for overseeing compliance with
15 fiduciary standards in public sector retirement plans.
16 "Public sector retirement plans" means retirement plans
17 for public employees, including, but not limited to, pensions
18 and supplemental plans (such as 457 plans).
19 "Fiduciary standards" means the legal and ethical
20 obligations under Illinois law requiring those who manage or
21 control public sector retirement plans to act in the best
22 interests of plan participants and beneficiaries, including
23 adhering to prudent investment standards, disclosure, and
24 reporting requirements.
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1 Section 20. Agency and duties.
2 (a) The Fiduciary Oversight Agency is hereby established
3 within the Department of Insurance.
4 (b) The Agency shall be responsible for monitoring the
5 operations of all public sector retirement plans in Illinois,
6 including pensions and supplemental retirement plans (such as
7 457 plans), to ensure compliance with State laws and fiduciary
8 standards.
9 (c) The Agency shall:
10 (1) Regularly review the operations of public sector
11 retirement plans, including plans administered by the
12 State, local governments, and other public entities, to
13 ensure compliance with State laws and fiduciary standards.
14 (2) Investigate complaints or reports of noncompliance
15 with fiduciary standards or applicable laws related to
16 public sector retirement plans.
17 (3) Provide guidance, training, and educational
18 resources to public sector retirement plan administrators,
19 fiduciaries, and other stakeholders on legal and fiduciary
20 obligations under Illinois law.
21 (4) Issue reports and recommendations on improvements
22 to public sector retirement plans to enhance compliance,
23 transparency, and overall plan health.
24 (5) Collaborate with other State agencies, local
25 governments, and retirement plan administrators to
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1 implement corrective actions when violations of fiduciary
2 standards or laws are identified.
3 (d) The Agency shall have the authority to:
4 (1) enforce compliance with fiduciary standards and
5 Illinois laws relating to public sector retirement plans
6 through administrative sanctions, penalties, and
7 corrective orders;
8 (2) conduct audits, investigations, and reviews of
9 retirement plans, plan administrators, and other
10 fiduciaries to ensure compliance with State laws and
11 fiduciary standards; and
12 (3) initiate civil or administrative proceedings to
13 address violations of fiduciary standards and enforce
14 corrective actions or penalties as appropriate.
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