Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2282 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	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
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2282 Introduced 2/7/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
3	3	New Act New Act
4	4	New Act
5	5	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.
6	6	LRB104 09619 BAB 19684 b LRB104 09619 BAB 19684 b
7	7	LRB104 09619 BAB 19684 b
8	8	A BILL FOR
9	9	SB2282LRB104 09619 BAB 19684 b SB2282 LRB104 09619 BAB 19684 b
10	10	SB2282 LRB104 09619 BAB 19684 b
11	11	1 AN ACT concerning regulation.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 1. Short title. This Act may be cited as the
15	15	5 Fiduciary Oversight Agency Act.
16	16	6 Section 5. Findings. The General Assembly finds that:
17	17	7 (1) Public sector pensions and retirement plans are
18	18	8 critical to the financial security of a significant
19	19	9 portion of the State's population. Numerous Illinois
20	20	10 residents depend on public sector retirement plans,
21	21	11 including pensions and supplemental plans, for their
22	22	12 retirement security.
23	23	13 (2) The State's public pension system holds hundreds
24	24	14 of billions of dollars in assets, which must be carefully
25	25	15 managed to ensure long-term stability. The Illinois
26	26	16 pension system is one of the largest in the nation, with an
27	27	17 estimated $400,000,000,000 in unfunded liabilities,
28	28	18 underscoring the importance of sound fiduciary management
29	29	19 and oversight.
30	30	20 (3) Staying compliant with State laws and up-to-date
31	31	21 with evolving regulations is crucial to safeguarding the
32	32	22 integrity and trust of these retirement plans. Ensuring
33	33	23 that public sector retirement plans adhere to fiduciary
34	34
35	35
36	36
37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2282 Introduced 2/7/2025, by Sen. Robert F. Martwick SYNOPSIS AS INTRODUCED:
38	38	New Act New Act
39	39	New Act
40	40	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.
41	41	LRB104 09619 BAB 19684 b LRB104 09619 BAB 19684 b
42	42	LRB104 09619 BAB 19684 b
43	43	A BILL FOR
44	44
45	45
46	46
47	47
48	48
49	49	New Act
50	50
51	51
52	52
53	53	LRB104 09619 BAB 19684 b
54	54
55	55
56	56
57	57
58	58
59	59
60	60
61	61
62	62
63	63	SB2282 LRB104 09619 BAB 19684 b
64	64
65	65
66	66	SB2282- 2 -LRB104 09619 BAB 19684 b SB2282 - 2 - LRB104 09619 BAB 19684 b
67	67	SB2282 - 2 - LRB104 09619 BAB 19684 b
68	68	1 standards and legal requirements promotes transparency,
69	69	2 prevents mismanagement, and protects the interests of plan
70	70	3 beneficiaries.
71	71	4 Section 10. Purpose. The purpose of this Act is to
72	72	5 establish a Fiduciary Oversight Agency tasked with monitoring
73	73	6 and reviewing public sector retirement plans, including both
74	74	7 pension and supplemental plans (such as 457 plans), to ensure
75	75	8 compliance with State laws and fiduciary standards. The Agency
76	76	9 shall also have enforcement authority to address any
77	77	10 noncompliance with applicable laws and standards.
78	78	11 Section 15. Definitions. As used in this Act:
79	79	12 "Fiduciary Oversight Agency" or "the Agency" means the
80	80	13 agency established by this Act within the Department of
81	81	14 Insurance with responsibility for overseeing compliance with
82	82	15 fiduciary standards in public sector retirement plans.
83	83	16 "Public sector retirement plans" means retirement plans
84	84	17 for public employees, including, but not limited to, pensions
85	85	18 and supplemental plans (such as 457 plans).
86	86	19 "Fiduciary standards" means the legal and ethical
87	87	20 obligations under Illinois law requiring those who manage or
88	88	21 control public sector retirement plans to act in the best
89	89	22 interests of plan participants and beneficiaries, including
90	90	23 adhering to prudent investment standards, disclosure, and
91	91	24 reporting requirements.
92	92
93	93
94	94
95	95
96	96
97	97	SB2282 - 2 - LRB104 09619 BAB 19684 b
98	98
99	99
100	100	SB2282- 3 -LRB104 09619 BAB 19684 b SB2282 - 3 - LRB104 09619 BAB 19684 b
101	101	SB2282 - 3 - LRB104 09619 BAB 19684 b
102	102	1 Section 20. Agency and duties.
103	103	2 (a) The Fiduciary Oversight Agency is hereby established
104	104	3 within the Department of Insurance.
105	105	4 (b) The Agency shall be responsible for monitoring the
106	106	5 operations of all public sector retirement plans in Illinois,
107	107	6 including pensions and supplemental retirement plans (such as
108	108	7 457 plans), to ensure compliance with State laws and fiduciary
109	109	8 standards.
110	110	9 (c) The Agency shall:
111	111	10 (1) Regularly review the operations of public sector
112	112	11 retirement plans, including plans administered by the
113	113	12 State, local governments, and other public entities, to
114	114	13 ensure compliance with State laws and fiduciary standards.
115	115	14 (2) Investigate complaints or reports of noncompliance
116	116	15 with fiduciary standards or applicable laws related to
117	117	16 public sector retirement plans.
118	118	17 (3) Provide guidance, training, and educational
119	119	18 resources to public sector retirement plan administrators,
120	120	19 fiduciaries, and other stakeholders on legal and fiduciary
121	121	20 obligations under Illinois law.
122	122	21 (4) Issue reports and recommendations on improvements
123	123	22 to public sector retirement plans to enhance compliance,
124	124	23 transparency, and overall plan health.
125	125	24 (5) Collaborate with other State agencies, local
126	126	25 governments, and retirement plan administrators to
127	127
128	128
129	129
130	130
131	131
132	132	SB2282 - 3 - LRB104 09619 BAB 19684 b
133	133
134	134
135	135	SB2282- 4 -LRB104 09619 BAB 19684 b SB2282 - 4 - LRB104 09619 BAB 19684 b
136	136	SB2282 - 4 - LRB104 09619 BAB 19684 b
137	137	1 implement corrective actions when violations of fiduciary
138	138	2 standards or laws are identified.
139	139	3 (d) The Agency shall have the authority to:
140	140	4 (1) enforce compliance with fiduciary standards and
141	141	5 Illinois laws relating to public sector retirement plans
142	142	6 through administrative sanctions, penalties, and
143	143	7 corrective orders;
144	144	8 (2) conduct audits, investigations, and reviews of
145	145	9 retirement plans, plan administrators, and other
146	146	10 fiduciaries to ensure compliance with State laws and
147	147	11 fiduciary standards; and
148	148	12 (3) initiate civil or administrative proceedings to
149	149	13 address violations of fiduciary standards and enforce
150	150	14 corrective actions or penalties as appropriate.
151	151
152	152
153	153
154	154
155	155
156	156	SB2282 - 4 - LRB104 09619 BAB 19684 b