40 ILCS 5/ Illinois Pension Code.

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40 ILCS 5/Art. 22A

(40 ILCS 5/Art. 22A heading) ARTICLE 22A. INVESTMENT BOARD

(Source: P.A. 98-463, eff. 8-16-13.)

40 ILCS 5/22A-101

(40 ILCS 5/22A-101) (from Ch. 108 1/2, par. 22A-101)

Sec. 22A-101.

Establishment.

The Illinois State Board of Investment is created with authority to
manage, invest and reinvest, the reserves, funds, assets, securities and
moneys of any pension fund, as provided in this Article, or education
fund as provided by law, and to perform
such other duties as may from time to time be authorized by the General
Assembly.

(Source: P.A. 84-1127.)

40 ILCS 5/22A-102

(40 ILCS 5/22A-102) (from Ch. 108 1/2, par. 22A-102)

Sec. 22A-102.

Definitions.

For the purposes of this Article, the following words and phrases shall
have the meaning ascribed to them unless the context requires otherwise.

(Source: P.A. 76-1829.)

40 ILCS 5/22A-103

(40 ILCS 5/22A-103) (from Ch. 108 1/2, par. 22A-103)

Sec. 22A-103.

"Board": The Illinois State Board of Investment.

(Source: P.A. 76-1829.)

40 ILCS 5/22A-104

(40 ILCS 5/22A-104) (from Ch. 108 1/2, par. 22A-104)

Sec. 22A-104.

Retirement System.

"Retirement System": Any pension fund or retirement system governed by
Articles 1 to 18, inclusive, of the "Illinois Pension Code", approved March
18, 1963, as amended.

(Source: P.A. 77-611.)

40 ILCS 5/22A-105

(40 ILCS 5/22A-105) (from Ch. 108 1/2, par. 22A-105)

Sec. 22A-105.

Pension Fund.

"Pension Fund": The reserves, funds, assets, securities, monies and
property of any pension fund or retirement system.

(Source: P.A. 77-611.)

40 ILCS 5/22A-105.1

(40 ILCS 5/22A-105.1) (from Ch. 108 1/2, par. 22A-105.1)

Sec. 22A-105.1.

"Education fund":

The monies, funds, reserves,
assets, securities, and property of the Illinois Bank Examiners' Education
Foundation held in the Illinois Bank Examiners' Education Fund in the State Treasury.

(Source: P.A. 84-1127.)

40 ILCS 5/22A-106

(40 ILCS 5/22A-106) (from Ch. 108 1/2, par. 22A-106)

Sec. 22A-106. "Manage":

To invest, reinvest, exchange and to perform all investment
functions with regard to reserves, funds, assets, securities and moneys
which the board is authorized to invest, and to preserve and protect such
reserves, funds, assets, securities and moneys, including, but not limited
to, authority to vote any stocks, bonds or other securities and to give
general or special proxies or powers of attorney with or without power of
substitution, except that the authority to vote proxies is subject to
Section 22A-113.4. This term shall not include any functions, duties and
responsibilities incident to the operation and administration of pension
funds or education fund other than that of investments.

(Source: P.A. 103-468, eff. 8-4-23.)

40 ILCS 5/22A-107

(40 ILCS 5/22A-107) (from Ch. 108 1/2, par. 22A-107)

Sec. 22A-107.

Invest.

"Invest": To acquire, invest, reinvest, exchange or retain property held
for a pension fund or education fund, sell and manage the reserves,
funds, securities, moneys
or assets of any pension fund, retirement system or education
fund in accordance with this
Article.

(Source: P.A. 84-1127.)

40 ILCS 5/22A-108

(40 ILCS 5/22A-108) (from Ch. 108 1/2, par. 22A-108)

Sec. 22A-108.

Investment.

"Investment": Any property acquired by the board for a pension fund,
any retirement system or education fund.

(Source: P.A. 84-1127.)

40 ILCS 5/22A-108.1

(40 ILCS 5/22A-108.1) (from Ch. 108 1/2, par. 22A-108.1)

Sec. 22A-108.1.

Investment Advisor:

Any person or business entity
which provides investment advice to the Board on a personalized basis and with an
understanding of the policies and goals of the Board.  "Investment Advisor" shall
not include any person or business entity which provides statistical or general
market research data available for purchase or use by others.

(Source: P.A. 79-1171.)

40 ILCS 5/22A-109

(40 ILCS 5/22A-109) (from Ch. 108 1/2, par. 22A-109)

Sec. 22A-109. Membership of board.

The board shall consist of the following
members:

(1) Five trustees appointed by the Governor with the

advice and consent of the Senate who may not hold an elective State office.

(2) The Treasurer.
(3) The Comptroller, who shall represent the State

Employees' Retirement System of Illinois.

(4) The Chairperson of the General Assembly

Retirement System.

(5) The Chairperson of the Judges Retirement System

of Illinois.

The appointive
members shall serve for terms of 4 years except that the terms of office of the
original appointive members pursuant to this amendatory Act of the 96th General Assembly shall be as follows:  One member for a term of 1
year; 1 member for a term of 2 years; 1 member for a term of 3 years; and 2 members for a term of 4 years.  Vacancies among the appointive
members shall be filled for unexpired terms by appointment in
like manner as for original appointments, and appointive members shall
continue in office until their successors have been appointed and have
qualified.

Notwithstanding any provision of this Section to the contrary, the term of office of each trustee of the Board appointed by the Governor who is sitting on the Board on the effective date of this amendatory Act of the 96th General Assembly is terminated on that effective date. A trustee sitting on the board on the effective date of this amendatory Act of the 96th General Assembly may not hold over in office for more than 60 days after the effective date of this amendatory Act of the 96th General Assembly. Nothing in this Section shall prevent the Governor from making a temporary appointment or nominating a trustee holding office on the day before the effective date of this amendatory Act of the 96th General Assembly.

Each person appointed to membership shall qualify by taking an oath of
office before the Secretary of State stating that he will diligently and
honestly administer the affairs of the board and will not violate or knowingly
permit the violation of any provisions of this Article.

Members of the board shall receive no salary for service on the board but
shall be reimbursed for travel expenses incurred while on business for the
board according to the standards in effect for members of the Commission on Government Forecasting and Accountability.

A majority of the members of the board shall constitute a quorum.  The
board shall elect from its membership, biennially, a Chairman, Vice Chairman
and a Recording Secretary.  These officers, together with one other member
elected by the board, shall constitute the executive committee.  During the
interim between regular meetings of the board, the executive committee shall
have authority to conduct all business of the board and shall report such
business conducted at the next following meeting of the board for ratification.

No member of the board shall have any interest in any brokerage fee,
commission or other profit or gain arising out of any investment made by
the board.  This paragraph does not preclude ownership by any member of any
minority interest in any common stock or any corporate obligation in which
investment is made by the board.

The board shall contract for a blanket fidelity bond in the penal sum of
not less than $1,000,000.00 to cover members of the board, the director and
all other employees of the board conditioned for the faithful performance of
the duties of their respective offices, the premium on which shall be paid by
the board.

(Source: P.A. 99-708, eff. 7-29-16; 100-1148, eff. 12-10-18.)

40 ILCS 5/22A-110

(40 ILCS 5/22A-110) (from Ch. 108 1/2, par. 22A-110)

Sec. 22A-110.

Administration.

The board shall appoint a director to administer
the affairs of the board subject to and under its supervision and fix his
compensation. The Board may appoint investment officers and fix their compensation.
With the approval of the board, the director may employ such personnel,
professional or clerical, as may be desirable and fix their compensation.
The appointment and compensation of the personnel other than the director
and investment officers shall be subject to the Personnel Code.

The board may adopt such rules and regulations (not inconsistent with this
Article) as in its judgment are desirable to implement and properly administer
this Article. A copy thereof shall be filed with the Secretary of State.

The board may exercise any of the powers granted to boards of trustees
of pension funds under Sections 1-107 or 1-108 of this Act, and may by resolution
provide for the indemnification of its members and any of its directors,
officers, advisors or employees in a manner consistent with those Sections.
No such resolution adopted on or after September 27, 1977 shall be deemed
invalid for the reason that it was adopted prior to the effective date of
this amendatory Act of 1983.

An office for meetings of the board and for administrative personnel shall
be established at any suitable place within the State as may be selected
by the board. All books and records of the board shall be kept in such
office.

(Source: P.A. 83-974.)

40 ILCS 5/22A-111

(40 ILCS 5/22A-111) (from Ch. 108 1/2, par. 22A-111)

Sec. 22A-111.

The Board shall manage the investments of any pension
fund, retirement system, or education fund for the purpose
of obtaining a total return on
investments for the long term.  It also shall perform such other functions as
may be assigned or directed by the General Assembly.

The authority of the board to manage pension fund investments and the
liability shall begin when there has been a physical transfer of the pension
fund investments to the board and placed in the custody of the board's custodian.

The authority of the board to manage monies from the education fund for
investment and the liability of the board shall begin when there has been a
physical transfer of education fund investments to the board and placed in
the custody of the board's custodian.

The board may not delegate its management functions, but it may, but is not required to, arrange
to compensate for personalized investment advisory service
for any or all investments under its control with any national or state bank
or trust company authorized to do a trust business and domiciled in Illinois,
 other financial institution organized under the laws of Illinois, or an
investment advisor who is qualified under the Federal Investment Advisers Act of 1940
and is registered under the Illinois Securities Law of 1953.  Nothing contained
herein shall prevent the Board from subscribing to general investment research
services available for purchase or use by others.  The Board shall also have
the authority to compensate for accounting services.

This Section shall not be construed to prohibit the Illinois State Board of Investment from directly investing pension assets in public market investments, private investments, real estate investments, or other investments authorized by this Code.

(Source: P.A. 99-708, eff. 7-29-16; 100-201, eff. 8-18-17.)

40 ILCS 5/22A-111.1

(40 ILCS 5/22A-111.1) (from Ch. 108 1/2, par. 22A-111.1)

Sec. 22A-111.1.

Public Employees Deferred Compensation Plan.

The Board shall also have the responsibilities imposed on it by Article
24 of this Act in relation to a deferred compensation plan for public
employees.

(Source: P.A. 78-1277.)

40 ILCS 5/22A-112

(40 ILCS 5/22A-112) (from Ch. 108 1/2, par. 22A-112)

Sec. 22A-112.

Investment authority.

The board shall have the authority
to invest funds, subject to the requirements and restrictions set forth
in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115 of this
Code.

No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments
of public funds by public agencies", approved July 23, 1943, as now or
hereafter amended.  The limitations set forth in such Section 6 shall be
applicable only at the time of investment and shall not require the liquidation
of any investment at any time.

The board shall have the authority to enter into such agreements and to
execute such documents as it determines to be necessary to complete any
investment transaction.

All investments shall be clearly held and accounted for to indicate
ownership by the board.  The board may direct the registration of
securities in its own name or in the name of a nominee created for the
express purpose of registration of securities by a national or state
bank or trust company authorized to conduct a trust business in the State of Illinois.

Investments shall be carried at cost or at a value
determined in accordance with generally accepted accounting principles
and accounting procedures approved
by the board.

The value of investments held by any pension fund, retirement system
or education fund in one or more commingled investment accounts shall be
determined in accordance with generally accepted accounting principles.

(Source: P.A. 90-19, eff. 6-20-97.)

40 ILCS 5/22A-113

(40 ILCS 5/22A-113) (from Ch. 108 1/2, par. 22A-113)

Sec. 22A-113.

Transfer of securities and investment functions.

(a) As soon as possible or practicable following the enactment of this
Article and prior to July 1, 1970, the trustees of the State Employees'
Retirement System, the General Assembly Retirement System and the Judges
Retirement System, shall transfer to this board for management and
investment all of their securities or for which commitments have been made,
and all funds, assets or moneys representing permanent or temporary
investments, or cash reserves maintained for the purpose of obtaining
income thereon.

(b) The board of trustees or retirement board of any pension fund or
retirement system electing to come under the authority of the Illinois
State Board of Investment for the management of its investments and the
performance of investment functions previously performed by such board of
that pension fund or retirement system shall effect a transfer of
securities and other assets thereof not later than the first day of the 4th
month next following the date of such election after completion of an audit
by a certified public accountant of such securities and other assets as
authorized by the Illinois State Board of Investment and approved by the
Auditor General of the State, the expense of which shall be assumed by the
pension fund or retirement system. Upon such transfer, the authority of the
Illinois State Board of Investment in the case of such pension fund or
retirement system is effective. These transfers shall be receipted for in
detail by the Chairman and director of the board.

(c) The board of trustees or retirement board of any pension fund or
retirement system authorized under the Illinois Pension Code to participate
in any commingled investment fund or funds established and managed by the
Illinois State Board of Investment under this Article may invest in such
commingled investment fund or funds upon written notice to the Illinois
State Board of Investment. The board of trustees of the Illinois Bank
Examiners' Education Foundation is authorized to participate in any
commingled investment fund or funds established and managed by the Illinois
State Board of Investment upon providing written notice to the Illinois
State Board of Investment.  Any participation in a commingled fund and the
management thereof shall be in accordance with the governing law and the
rules, policies and directives of the Illinois State Board of Investment.

(Source: P.A. 84-1127.)

40 ILCS 5/22A-113.1

(40 ILCS 5/22A-113.1) (from Ch. 108 1/2, par. 22A-113.1)

Sec. 22A-113.1. Investable funds.

Each retirement system under the management of the Illinois State Board
of Investment shall report to the board from time to time the amounts of
funds available for investment. These amounts shall be transferred
immediately to the board's custodian or the custodian's authorized agent for the account
of the board to be applied for investment by the board. Notice to the
Illinois State Board of Investment of each such transfer shall be given by
the retirement system as the transfer occurs.

(Source: P.A. 99-708, eff. 7-29-16.)

40 ILCS 5/22A-113.2

(40 ILCS 5/22A-113.2) (from Ch. 108 1/2, par. 22A-113.2)

Sec. 22A-113.2. Custodian.

The securities, funds and other assets transferred to the Illinois State
Board of Investment or otherwise acquired by the board shall be placed in
the custody of the board's custodian. The custodian shall provide adequate safe deposit facilities therefor and hold all
such securities, funds and other assets subject to the order of the board.

As soon as may be practicable, but in no event later than December 31, 2016, the board shall appoint and retain a qualified custodian. Until a custodian has been appointed by the board, the State Treasurer shall serve as official custodian of
the board.

The custodian shall furnish a corporate surety bond of such amount
as the board designates, which bond shall indemnify the board against any
loss that may result from any action or failure to act by the custodian or
any of the custodian's agents. All charges incidental to the procuring and giving of
such bond shall be paid by the board. The bond shall be in the custody of
the board.

(Source: P.A. 99-708, eff. 7-29-16.)

40 ILCS 5/22A-113.3

(40 ILCS 5/22A-113.3) (from Ch. 108 1/2, par. 22A-113.3)

Sec. 22A-113.3. Investable funds of education foundation.

The
Illinois Bank Examiners'
Education Foundation shall report to the board from time to time the
amounts of monies available for investment by the board.  These amounts shall be
transferred promptly to the board's custodian or the custodian's authorized agent for the
account of the board to be applied for investment by the board.  Notice to
the board of each such transfer shall be given by the Illinois Bank
Examiners' Education Foundation after the transfer occurs.

(Source: P.A. 99-708, eff. 7-29-16.)

40 ILCS 5/22A-113.4

    (40 ILCS 5/22A-113.4)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 22A-113.4. Proxy voting.
    (a) In this Section, "fiduciary" has the meaning given to that term in Section 1-101.2.

(b) Notwithstanding the Board's investment authority, and upon the affirmative vote of at least three-fifths of the members of the Board, the State Treasurer shall be authorized to manage the domestic and international proxy voting activity for shares held directly by the Board and execute required ballots on behalf of the Board. The Board's consent granted under this Section may be revoked at any time upon the affirmative vote of a majority of the members of the Board.

(c) When the State Treasurer is managing any proxy voting activity in accordance with subsection  (b), the following shall apply: (1) the State Treasurer shall provide the Board with (i) comprehensive proxy voting reports on a quarterly basis and as requested by the Board and (ii) access to communications with its third-party proxy voting service, if any, used in preparing the comprehensive proxy voting reports requested by the Board; and (2) the Board may provide the State Treasurer with guidance for proxy voting, which, if provided, the State Treasurer shall consider when voting.

(d) The State Treasurer shall act as a fiduciary to the Illinois State Board of Investment with regard to all aspects of the State Treasurer's management of the proxy voting activity as provided under subsection (b).

(e) With respect to this Section, and with respect to the State Treasurer's management of the proxy voting activity as provided for under subsection (b), the Board is exempt from any conflicting statutory or common law obligations, including any fiduciary or co-fiduciary duties under this Article and Article 1.

(f) With respect to this Section and with respect to the State Treasurer's management of the proxy voting activity as provided for under subsection (b),  the Board, its staff, and the trustees of the Board shall not be liable for any damage or suits where damages are sought for negligent or wrongful acts alleged to have been committed in connection with the management of proxy voting activity as provided for under this Section.

(g)  In order to facilitate the State Treasurer's proxy voting activities under this Section and before the State Treasurer begins proxy voting activities, the State Treasurer and the Board shall enter into an intergovernmental agreement concerning costs, proxy voting guidance, reports and other documents, and other issues.

(h) This Section is repealed on January 1, 2027.

(Source: P.A. 103-468, eff. 8-4-23.)

40 ILCS 5/22A-113.5

(40 ILCS 5/22A-113.5)
Sec. 22A-113.5. Fiduciary report.

On or before September 1, 2023, and annually thereafter, the Board shall publish its guidelines for voting proxy ballots and a detailed report on its website describing how the Board is considering sustainability factors as defined in the Illinois Sustainable Investing Act. The report shall:

(1) describe the Board's strategy as it relates to

the consideration of sustainable investment factors;

(2) outline the process for regular assessment across

the total portfolio of potential effects from systemic and regulatory risks and opportunities, including, but not limited to, sustainability factors on the assets of the plan;

(3) disclose how each investment manager serving as a

fiduciary to the Board integrates sustainability factors into the investment manager's investment decision-making process;

(4) provide a comprehensive proxy voting report;
(5) provide an overview of all corporate engagement

and stewardship activities; and

(6) include any other information the Board deems

necessary.

(Source: P.A. 103-468, eff. 8-4-23.)

40 ILCS 5/22A-114

(40 ILCS 5/22A-114) (from Ch. 108 1/2, par. 22A-114)

Sec. 22A-114.

Accounting.

In the management of pension and education funds
the board:

(1) may, for investment purposes, commingle all or a part of the
invested assets of one or more pension or education funds under its
jurisdiction and authority;

(2) shall carry assets of all funds at cost or a value determined in accordance with
generally accepted
accounting principles and accounting procedures approved by the board.  Each investment initially transferred to the board by
a pension fund or monies transferred to the board by an education fund shall be
similarly valued except that the board may elect to place such value on any
investment conditionally in which case the amount of any later realization of
such asset in cash that is in excess of or is less than the amount so credited
shall be credited or charged to the fund that made the transfer;

(3) shall keep proper books of account which shall reflect at all times
the value of all investments held by the board for a pension fund or education
fund whether for the separate account of the fund or in a commingled fund;

(4) shall charge each pension fund or education fund with its share of all
expenses of the board (including those repayable under Section 22A-116) at
quarter-yearly periods pro rata according to the value of the investments held
for the respective funds at the beginning of the quarter or any other equitable
formula;

(5) shall charge all distributions made by the board to or for a pension
fund or education fund to the account maintained for that fund.

(Source: P.A. 90-19, eff. 6-20-97.)

40 ILCS 5/22A-115

(40 ILCS 5/22A-115) (from Ch. 108 1/2, par. 22A-115)

Sec. 22A-115.

Audits and reports.

At least annually, the books, records, accounts and securities of the
board shall be audited by a certified public accountant designated by the
Auditor General of the State. The audit opinion shall be published as a
part of the annual report of the board.

For the quarterly periods ending September 30, December 31, and March
31, the board shall submit to each pension fund, retirement
system  or education fund  under
its jurisdiction a report embracing, among other things, the following
information: (a) a full description of the investments acquired, showing
average costs; (b) a full description of the securities sold or exchanged,
showing average proceeds or other conditions of an exchange; (c) gains or
losses realized during the period; (d) income from investments; (e)
administrative expenses of the board; and (f) the proportion of
administrative expenses allocable to each pension fund, retirement
system or education fund.

An annual report shall be prepared by the board for submission to each
pension fund, retirement system or education fund under its
jurisdiction within 6 months
after the close of each fiscal year. A fiscal year shall date from July 1
of one year to June 30 of the year next following. This report shall embody
full information concerning the results of investment operations of the
board for the year, including the foregoing information and, in addition
thereto, the following:

(a) a listing of the investments held by the board as at the end of the
year showing their book values and market values and their income yields on
market values;

(b) the amounts as determined under paragraph (a) above allocable to
each pension fund or education fund managed by the board;

(c) comments on the pertinent factors affecting the operations of the
board for the year;

(d) a review of the policies maintained by the board and any changes
therein that occurred during the year;

(e) a copy of the audited financial statements for the year;

(f) recommendations for possible changes in the law governing the
operations of the board; and

(g) a listing of the names of securities brokers and dealers dealt with
during the year showing the total amount of commissions received by each on
transactions with the board.

(Source: P.A. 84-1127.)

40 ILCS 5/22A-116

(40 ILCS 5/22A-116) (from Ch. 108 1/2, par. 22A-116)

Sec. 22A-116.

(Repealed).

(Source: P.A. 76-1829. Repealed by P.A. 89-657, eff. 8-14-96.)