Bill Text: IL HB2427 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the General Provisions Article of the Illinois Pension Code. By no later than December 31, 2023, requires every pension fund, except for a Downstate Police or Downstate Firefighter fund, to develop a climate change risk minimization policy. Provides that the policy shall consider the financial risk to the investments held by the pension fund in the event of different levels of climate change, as defined by the United Nations Framework Convention on Climate Change. Requires the policy to explain what sources of data, which must include specified sources, were used to make certain projections. Requires the policy to consider the scope of the financial risk of climate-related events. Authorizes the pension fund to determine a policy for all corporate equities held by the pension fund on voting for shareholder resolutions and directors to advance corporate policies that minimize the long-term risk to the pension fund's assets from increased climate change. Requires the policy to be updated annually and published on the pension fund's website. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB2427 Detail]

Download: Illinois-2023-HB2427-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2427 Introduced , by Rep. Camille Y. Lilly SYNOPSIS AS INTRODUCED:
40 ILCS 5/1-113.65 new
30 ILCS 805/8.47 new
Amends the General Provisions Article of the Illinois Pension Code. By no later than December 31, 2023, requires every pension fund, except for a Downstate Police or Downstate Firefighter fund, to develop a climate change risk minimization policy. Provides that the policy shall consider the financial risk to the investments held by the pension fund in the event of different levels of climate change, as defined by the United Nations Framework Convention on Climate Change. Requires the policy to explain what sources of data, which must include specified sources, were used to make certain projections. Requires the policy to consider the scope of the financial risk of climate-related events. Authorizes the pension fund to determine a policy for all corporate equities held by the pension fund on voting for shareholder resolutions and directors to advance corporate policies that minimize the long-term risk to the pension fund's assets from increased climate change. Requires the policy to be updated annually and published on the pension fund's website. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
LRB103 28881 RPS 55267 b
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT MAY APPLY
A BILL FOR
HB2427 LRB103 28881 RPS 55267 b
AN ACT concerning public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by adding
Section 1-113.65 as follows:
(40 ILCS 5/1-113.65 new)
Sec. 1-113.65. Climate change risk minimization policy.
(a) As used in this Section, "pension fund" means a
pension fund or retirement system established under this Code,
except for a pension fund established under Article 3 or 4 of
this Code.
(b) No later than December 31, 2023, every pension fund
shall develop a climate change risk minimization policy. This
policy shall consider the financial risk to the investments
held by the pension fund in the event of different levels of
climate change, as defined by the United Nations Framework
Convention on Climate Change. The initial development of this
policy shall use the National Association of Insurance
Commissioners' Insurer Climate Risk Disclosure Survey as a
model. The policy shall consider the scope of the financial
risk and the financial impact of these climate-related events,
including, but not limited to, severe drought, coastal
flooding, and more intense hurricanes, on the holdings of the

HB2427 - 2 - LRB103 28881 RPS 55267 b
pension fund. The policy shall explain what sources of data,
which shall include, but not be limited to, insurance company
projections, the United Nations Framework Convention on
Climate Change, and the United States Environmental Protection
Agency, were used in making long-term projections on the
climate and the potential long-term financial impact to the
holdings of the pension fund from increased climate change.
(c) To the extent the pension fund determines, based on
insurance company projections and other official sources of
data, that increasing climate change is a significant
financial risk to the long-term value of the pension fund, the
pension fund may determine a policy for all corporate equities
held by the pension fund on voting for shareholder resolutions
and directors to advance corporate policies that minimize the
long-term risk to the pension fund's assets from increased
climate change, including, but not limited to, voting for
shareholder resolutions that commit companies to internal
policies that reduce the company's carbon emissions.
(d) The policy shall be updated annually and published on
the pension fund's website. Previous versions of the policy
shall be kept on the pension fund's website for a period of 5
years.
Section 90. The State Mandates Act is amended by adding
Section 8.47 as follows:

HB2427 - 3 - LRB103 28881 RPS 55267 b
(30 ILCS 805/8.47 new)
Sec. 8.47. Exempt mandate. Notwithstanding Sections 6 and
8 of this Act, no reimbursement by the State is required for
the implementation of any mandate created by this amendatory
Act of the 103rd General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.