HB5119 Makes Pension Advisory Services Discretionary in Illinois
Summary
Illinois HB5119 amends the Regulation of Public Pension Funds Article of the Illinois Pension Code, making advisory services from the Department of Insurance's Public Pension Division discretionary rather than mandatory. The bill modifies reporting requirements for pension fund examinations, requires disclosure of nontransferable asset transactions, adjusts penalty enforcement procedures, and repeals the Advisory Commission on Pension Benefits.
What changed
HB5119 modifies the Illinois Pension Code by changing several mandatory requirements to discretionary ones. The Public Pension Division advisory services shift from "shall" to "may," and corrective legislation recommendations become optional. The bill also adds requirements for independent CPA examination results to be included in reports and mandates disclosure of nontransferable asset transactions retained after investment transfers to state investment funds.
For Illinois public pension funds, these changes reduce state oversight in some areas while increasing reporting requirements in others. Downstate police and firefighter pension funds must now include detailed nontransferable asset transaction disclosures in annual reports. The repeal of the Advisory Commission on Pension Benefits eliminates a previously established advisory body. Funds should update their compliance procedures and annual reporting templates to reflect these new requirements.
What to do next
- Review current pension fund advisory service arrangements for impact
- Update internal compliance procedures to reflect discretionary advisory services
- Ensure nontransferable asset transaction reporting is included in annual filings
Penalties
Director of Insurance may report noncompliance to the Attorney General if penalties remain unpaid after 30 days without just cause communicated
Archived snapshot
Apr 10, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
ChangeBridge / Illinois / HB5119 Passed HB5119 House Bill Passed 2026-04-09
PEN CD-PENSION FUND REGULATION
Amends the Regulation of Public Pension Funds Article of the Illinois Pension Code. Provides that the Public Pension Division of the Department of Insurance may (instead of shall) render advisory services to the pension funds on all matters pertaining to their operations. Provides that recommendations for corrective or clarifying legislation may (instead of shall) be made in the report of examination of the particular pension fund and in a biennial report to the General Assembly. Provides that the report to the Governor and General Assembly shall include the results of examinations made by an independent certified public accountant retained by the Police Officers' Pension Investment Fund or the Firefighters' Pension Investment Fund for examinations of a downstate police or downstate firefighter pension fund. Requires downstate police and downstate firefighter pension funds to include, in their annual report to the Public Pension Division, details on transactions pertaining to nontransferable assets that funds retain after transferring investments to the Police Officers' Pension Investment Fund or the Firefighters' Pension Investment Fund. Provides that, if a penalty is not paid within 30 days of the date of assessment and no just cause has been communicated, the Director of Insurance may (instead of if a penalty is not paid within 30 days of the date of assessment, the Director without further notice shall) report the act of noncompliance to the Attorney General. Repeals provisions establishing the Advisory Commission on Pension Benefits. Makes other changes.
Bill Details
State Illinois
Session 104th General Assembly
Chamber House
Official Source www.ilga.gov/Legislation/BillStatus?DocNum...
LegiScan View on LegiScan
Sponsors
Stephanie Kifowit (Rep - D)
Action History
2026-04-09 H Third Reading - Short Debate - Passed 099-000-000 2026-04-08 H Placed on Calendar Order of 3rd Reading - Short Debate 2026-04-08 H Second Reading - Short Debate 2026-03-20 H Placed on Calendar 2nd Reading - Short Debate 2026-03-20 H Do Pass / Short Debate Personnel & Pensions Committee; 010-000-000 2026-03-12 H Assigned to Personnel & Pensions Committee 2026-02-10 H Referred to Rules Committee 2026-02-10 H First Reading 2026-02-05 H Filed with the Clerk by Rep. Stephanie A. Kifowit
Committee Referrals
2026-02-10 H Rules 2026-03-12 H Personnel & Pensions
Bill Text Versions
2026-02-05 Introduced 2026-04-08 Engrossed Legislative data powered by LegiScan (CC BY 4.0)
Named provisions
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