summary
Introduced
02/21/2025
02/21/2025
In Committee
02/24/2026
02/24/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the General Provisions Article of the Illinois Pension Code. Provides that the amendatory Act may be referred to as the Fossil Fuel Divestment Act. With regard to the retirement systems established under the General Assembly, State Employees, State Universities, Downstate Teachers, or Judges Article of the Code and the Illinois State Board of Investment, prohibits direct investment of any additional pension assets in the stocks, securities, or other obligations of any fossil fuel company or any subsidiary, affiliate, or parent of a fossil fuel company. Provides that each board of trustees of a pension system shall ensure the pension system does not make further indirect investments unless, upon exercising due diligence, the board of trustees is satisfied that the investment vehicle is unlikely to have more than 2% of its assets invested in fossil fuel companies. Requires pension system trustees to identify the pension system's holdings, whether directly or indirectly invested, including private investments. Requires pension system trustees to identify holdings that are invested in the stocks, securities, equities, fixed income, corporate bonds, prime commercial paper, or other obligations of fossil fuel companies. Requires pension systems to, in accordance with sound investment criteria and consistent with fiduciary obligations, divest any fossil fuel holdings, which must be completed by January 1, 2030. Requires pension systems to adopt an update to their written investment policies if necessary. Requires each pension system to disclose the analytic methods used, if any, in determining the climate-related financial risks posed by its fossil fuel investments (both publicly traded and private investments) and the results of the analysis. Sets forth provisions concerning definitions, de minimis exposure to fossil fuel securities, and annual reporting. Effective immediately.
AI Summary
This bill establishes the Fossil Fuel Divestment Act, which requires Illinois pension systems to gradually eliminate investments in fossil fuel companies due to the perceived financial risks associated with climate change. The bill defines a fossil fuel company as those among the largest fossil fuel reserve owners, power plant operators, or companies with significant fossil fuel-related revenue. Beginning immediately, pension systems are prohibited from making new direct investments in fossil fuel companies and must limit indirect investments to vehicles with less than 2% fossil fuel exposure. Within 90 days, pension system trustees must identify and report all current fossil fuel holdings, providing detailed information about these investments. By January 1, 2030, pension systems must completely divest their direct fossil fuel holdings, and by January 1, 2035 for investments with liquidity restrictions. The bill requires pension systems to update their investment policies, disclose climate-related financial risks, report on shareholder engagement activities, and publish annual environmental, social, and governance investment reports. The legislation is driven by findings that climate change poses significant threats to Illinois' financial sustainability and aligns with the state's goal of transitioning to 100% renewable energy by 2050.
Committee Categories
Budget and Finance
Sponsors (10)
Will Guzzardi (D)*,
Carol Ammons (D),
Dee Avelar (D),
Hoan Huynh (D),
Lilian Jiménez (D),
Camille Lilly (D),
Theresa Mah (D),
Anna Moeller (D),
Abdelnasser Rashid (D),
Anne Stava-Murray (D),
Last Action
Assigned to Appropriations-Pensions & Personnel (on 02/24/2026)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3961&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB3961.htm |
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