In Illinois, retirement benefits are provided to police officers and firefighters through local pension funds. As of the end of fiscal year 2017, there were 643 pension funds for police officers and firefighters across the state. State law places limits on the types of securities that these pension funds can own. These limitations are particularly prohibitive for smaller funds. While these limitations reduce risk for funds, they also limit potential investment returns.
The Illinois Public Pension Fund Association (IPPFA) retained Anderson Economic Group to estimate the impacts of easing investment restrictions on pension fund with less than $10 million in assets.