40 ILCS 5/1-113.2
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 1 - General Provisions: Short Title, Effect Of Code And Other Provisions

Sec. 1-113.2.   List of permitted investments for all Article 3 or 4 pension  funds.  Any pension fund established under Article 3 or 4 may invest in the  following items:(1) Interest bearing direct obligations of the United States of America.(2) Interest bearing obligations to the extent that they are fully  guaranteed or insured as to payment of principal and interest by the United  States of America.(3) Interest bearing bonds, notes, debentures, or other similar obligations  of agencies of the United States of America.  For the purposes of this Section,  "agencies of the United States of America" includes: (i) the Federal National  Mortgage Association and the Student Loan Marketing Association; (ii) federal  land banks, federal intermediate credit banks,  federal farm credit banks, and any other entity authorized to  issue direct debt obligations of the United States of America under the Farm  Credit Act of 1971 or amendments to that Act; (iii) federal home loan banks and  the Federal Home Loan Mortgage Corporation; and (iv) any agency created  by Act of Congress that is authorized to issue direct debt obligations of the  United States of America.(4) Interest bearing savings accounts or certificates of deposit, issued by  federally chartered banks or savings and loan associations, to the extent that  the deposits are insured by agencies or instrumentalities of the federal  government.(5) Interest bearing savings accounts or certificates of deposit, issued by  State of Illinois chartered banks or savings and loan associations, to the  extent that the deposits are insured by agencies or instrumentalities of the  federal government.(6) Investments in credit unions, to the extent that the investments are  insured by agencies or instrumentalities of the federal government.(7) Interest bearing bonds of the State of Illinois.(8) Pooled interest bearing accounts managed by the Illinois Public  Treasurer's Investment Pool in accordance with the Deposit of State Moneys Act,   interest bearing funds or pooled accounts of the Illinois Metropolitan Investment Funds, and interest bearing funds or pooled accounts managed, operated, and  administered by banks, subsidiaries of banks, or subsidiaries of bank holding  companies in accordance with the laws of the State of Illinois.(9) Interest bearing bonds or tax anticipation warrants of any county,  township, or municipal corporation of the State of Illinois.(10) Direct obligations of the State of Israel, subject to the conditions  and limitations of item (5.1) of Section 1-113.(11) Money market mutual funds managed by investment companies that are  registered under the federal Investment Company Act of 1940 and the Illinois  Securities Law of 1953 and are diversified, open-ended management investment  companies; provided that the portfolio of the money market mutual fund is  limited to the following:(i) bonds, notes, certificates of indebtedness,     treasury bills, or other securities that are guaranteed by the full faith and credit of the United States of America as to principal and interest;(ii) bonds, notes, debentures, or other similar     obligations of the United States of America or its agencies; and(iii) short term obligations of corporations     organized in the United States with assets exceeding $400,000,000, provided that (A) the obligations mature no later than 180 days from the date of purchase, (B) at the time of purchase, the obligations are rated by at least 2 standard national rating services at one of their 3 highest classifications, and (C) the obligations held by the mutual fund do not exceed 10% of the corporation's outstanding obligations.(12) General accounts of life insurance companies authorized to transact  business in Illinois.(13) Any combination of the following, not to exceed 10% of the pension  fund's net assets:(i) separate accounts that are managed by life     insurance companies authorized to transact business in Illinois and are comprised of diversified portfolios consisting of common or preferred stocks, bonds, or money market instruments;(ii) separate accounts that are managed by insurance     companies authorized to transact business in Illinois, and are comprised of real estate or loans upon real estate secured by first or second mortgages; and(iii) mutual funds that meet the following     requirements:(A) the mutual fund is managed by an investment         company as defined and registered under the federal Investment Company Act of 1940 and registered under the Illinois Securities Law of 1953;(B) the mutual fund has been in operation for at         least 5 years;(C) the mutual fund has total net assets of $250         million or more; and(D) the mutual fund is comprised of diversified         portfolios of common or preferred stocks, bonds, or money market instruments.(14) Corporate bonds managed through an investment advisor must meet all of the following requirements:(1) The bonds must be rated as investment grade by     one of the 2 largest rating services at the time of purchase.(2) If subsequently downgraded below investment     grade, the bonds must be liquidated from the portfolio within 90 days after being downgraded by the manager. (Source: P.A. 96-1495, eff. 1-1-11.)