103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2152
 
Introduced 2/10/2023, by Sen. Bill Cunningham
 
SYNOPSIS AS INTRODUCED:
 

 
40 ILCS 5/15-177.5 new
40 ILCS 5/16-188 new
40 ILCS 5/22A-113.4 new

     Amends the State Universities, Downstate Teachers, and Board of Investment Articles of the Illinois Pension Code. Provides that the State Treasurer shall manage the System's or Investment Board's domestic and international proxy voting activity and execute required ballots on behalf of the System or Investment Board. Requires the State Treasurer to provide the Board of the System or Investment Board with comprehensive proxy voting reports on a quarterly basis and as requested by the Board of the System or Investment Board.  Requires the Board of the System and the Investment Board to annually publish a report on its website describing how the Board is considering sustainability factors as defined in the Illinois Sustainable Investing Act and other information. Effective January 1, 2024.
  


LRB103 30754 RPS 57236 b

 
 
A BILL FOR
 

  
SB2152LRB103 30754 RPS 57236 b


  
1    AN ACT concerning public employee benefits.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Illinois Pension Code is amended  by adding 
5Sections 15-177.5, 16-188, and 22A-113.4 as follows:
 
6    (40 ILCS 5/15-177.5 new)
7    Sec. 15-177.5. Proxy voting. Notwithstanding the Board's 
8investment authority, the State Treasurer shall manage the 
9System's domestic and international proxy voting activity and 
10execute required ballots on behalf of the System.  The State 
11Treasurer shall provide the Board with comprehensive proxy 
12voting reports on a quarterly basis and as requested by the 
13Board.
14    On or before December 31, 2024, and annually thereafter, 
15the Board shall publish a report on its website describing how 
16the Board is considering sustainability factors as defined in 
17the Illinois Sustainable Investing Act. The report shall:
18        (1)   describe the Board's strategy as it relates to the 
19    consideration of sustainable investment factors;
20        (2)   outline the process for regular assessment across 
21    the total portfolio of potential effects from systemic and 
22    regulatory risks and opportunities, including, but not 
23    limited to, environmental factors on the assets of the 
 
 
SB2152- 2 -LRB103 30754 RPS 57236 b

1    plan;
2        (3)   disclose how each investment manager used 
3    integrates sustainability factors into the investment 
4    manager's decision-making; and
5        (4)   include any other information the Board deems 
6    necessary.
 
7    (40 ILCS 5/16-188 new)
8    Sec. 16-188. Proxy voting. Notwithstanding the Board's 
9investment authority, the State Treasurer shall manage the 
10System's domestic and international proxy voting activity and 
11execute required ballots on behalf of the System.  The State 
12Treasurer shall provide the Board with comprehensive proxy 
13voting reports on a quarterly basis and as requested by the 
14Board.
15    On or before December 31, 2024, and annually thereafter, 
16the Board shall publish a report on its website describing how 
17the Board is considering sustainability factors as defined in 
18the Illinois Sustainable Investing Act. The report shall:
19        (1)   describe the Board's strategy as it relates to the 
20    consideration of sustainable investment factors;
21        (2)   outline the process for regular assessment across 
22    the total portfolio of potential effects from systemic and 
23    regulatory risks and opportunities, including, but not 
24    limited to, environmental factors on the assets of the 
25    plan;
 
 
SB2152- 3 -LRB103 30754 RPS 57236 b

1        (3)   disclose how each investment manager used 
2    integrates sustainability factors into the investment 
3    manager's decision-making; and
4        (4)   include any other information the Board deems 
5    necessary.
 
6    (40 ILCS 5/22A-113.4 new)
7    Sec. 22A-113.4. Proxy voting.  Notwithstanding the Board's 
8investment authority, the State Treasurer shall manage the 
9Board's domestic and international proxy voting activity and 
10execute required ballots on behalf of the Board.  The State 
11Treasurer shall provide the Board with comprehensive proxy 
12voting reports on a quarterly basis and as requested.
13    On or before December 31, 2024, and annually thereafter, 
14the Board shall publish a report on its website describing how 
15the Board is considering sustainability factors as defined in 
16the Illinois Sustainable Investing Act. The report shall:
17        (1)   describe the Board's strategy as it relates to the 
18    consideration of sustainable investment factors;
19        (2)   outline the process for regular assessment across 
20    the total portfolio of potential effects from systemic and 
21    regulatory risks and opportunities, including, but not 
22    limited to, environmental factors on the assets of the 
23    plan;
24        (3)   disclose how each investment manager used 
25    integrates sustainability factors into the investment 
 
 
SB2152- 4 -LRB103 30754 RPS 57236 b

1    manager's decision-making; and
2        (4)   include any other information the Board deems 
3    necessary.
 
 
4    Section 99. Effective date. This Act takes effect January 
51, 2024.