Amends the General Provisions Article of the Illinois Pension Code. Provides that every retirement system, pension fund, or other system or fund established under the Code shall (instead of may) indemnify and protect the trustees and staff (instead of the trustees, staff, and consultants) against all damage claims and suits, including the defense thereof, when damages are sought for negligent or wrongful acts alleged to have been committed in the scope of employment or under the direction of the trustees. Amends the State Mandates Act to require implementation without reimbursement by the State.