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SB 2449

ORP; revise for existing participants, and terminate for employees hired on or after March 1, 2026.

2025 Regular Session Introduced by Daniel Sparks

Removes the State Treasurer's authority to invest state funds in foreign-government bonds, narrowing investment options; operative date moved to March 1, 2026.

Died In Committee
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Bill Summary · SB 2449

Summary — SB 2449 (104th General Assembly, 2025–2026)

Status: Died in committee (Natural Resources), introduced Feb–Mar 2025
Primary sponsor: Sen. Rachel Ventura
Companion bill: HB 5123

Note up front: the bill packet provided contains inconsistent metadata. The top title references "ORP; revise for existing participants, and terminate for employees hired on or after March 1, 2026," but the text of the introduced bill and its synopsis actually amend Section 22.5 of the Deposit of State Moneys Act (permitted investments by the State Treasurer). This summary focuses on the actual introduced text and adopted committee amendment, which address permitted investments.

Purpose / Intent

The bill seeks to narrow the State Treasurer’s statutory authority over permitted investments by removing a provision that allows the Treasurer to invest or reinvest State funds in bonds, notes, debentures, or similar obligations of certain foreign governments that meet specified requirements. The committee amendment adjusts an operative date from July 1, 2025 to March 1, 2026 and makes small textual changes.

Key provisions and changes

  • Amends Section 22.5 of the Deposit of State Moneys Act (15 ILCS 520/22.5).
  • Removes language that permitted the State Treasurer to invest state monies in bonds or similar obligations of foreign governments that satisfied certain criteria (language referencing such foreign-government obligations is deleted or struck).
  • Committee Amendment No. 1:
    • Changes an effective/operative date in the text from July 1, 2025 to March 1, 2026.
    • Replaces the word “equal” with “up” in one clause (technical wording change).
    • Adjusts the bill title to conform to the amendment.

(The rest of Section 22.5 text remains a complex set of enumerated permitted investments and numeric limits; the introduced change specifically targets the foreign-government-obligations allowance.)

Who would be affected

  • State Treasurer’s Office: reduced statutory flexibility to invest State Treasury funds in certain foreign sovereign obligations.
  • Funds managed by the Treasurer (e.g., General Revenue, Illinois Public Treasurer Investment Pool (IPTIP), College Savings Pool Administrative Trust Fund, and other State Treasury accounts): potential change in allowable asset classes and portfolio composition.
  • Indirectly: state cash-management outcomes (yield, liquidity, diversification) and counterparty/country exposure.

Potential impacts

  • Investment flexibility: constraining purchases of some foreign sovereign debt could reduce diversification options available to the Treasurer.
  • Risk management and policy alignment: removing foreign-government investments may be intended to reduce exposure to geopolitical risk or align investments with state policy regarding foreign actors.
  • Fiscal impact: likely modest and dependent on whether the Treasurer currently uses the deleted authority; any yields or losses avoided/gained would be reflected in fund returns. No explicit dollar amounts or appropriation changes are included.

Procedural timeline / status

  • Introduced: Feb 7, 2025 (first reading same day)
  • Committee substitute adopted and amendments considered in February 2025
  • Read first time in Senate and referred to committees (Assignments; State Affairs; Accountability, Efficiency, Transparency; Natural Resources)
  • Amendment adopted replacing July 1, 2025 with March 1, 2026
  • Died in Committee (March 4, 2025)

Additional note on discrepancies

The bill filing metadata and title referencing the "ORP" (Optional Retirement Plan) termination for future hires does not match the body language provided (which amends the Deposit of State Moneys Act). This appears to be either a clerical/title mismatch or two different bill concepts conflated. The summary above reflects the enacted text as provided (foreign-government investment removal).

Compiled from official sources — confirm details with the bill’s official record.

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