Joel Rice's article "Illinois' Historic New Retirement Savings Law" was featured in the Chicago Daily Law Bulletin on January 22, 2015.
Illinois recently made history as the first state in the country to require small businesses to offer employees the option of enrolling in individual retirement accounts.
Called the Illinois Secure Choice Savings Program (Senate Bill 2758), the new law is intended to encourage workers without access to retirement accounts through their employment to save for their retirement.
In the article, Joel examines the guidelines of the Secure Choice Savings Program.
The Secure Choice program will apply to all businesses in Illinois that (a) have 25 or more employees, (b) have been in business for at least two years and (c) do not already offer a qualified retirement plan. Employers with fewer than 25 employees may choose to participate in the program but are not required to do so.
Businesses already offering a retirement plan to their workers are not allowed to participate. Also, in lieu of participating in Secure Choice, businesses subject to the act will have the option of sponsoring an alternative arrangement, including a defined benefit plan or a qualifying 401(k) plan.
The Secure Choice program will be overseen by a board consisting of the state treasurer (who will serve as chair), the Illinois comptroller, the director of the governor's Office of Management and Budget, two financial industry experts, an individual representing employers and an individual representing enrollees.
Joel states, it's important to note that the Secure Choice program is not running at this time. Under the act, it is slated to become operative within two years — by 2017. None of the program's requirements will take effect until after the board opens the program for enrollment.
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