As reported in an earlier article (Mandatory Retirement Plans In Illinois), back in 2015, former Illinois governor Pat Quinn passed the Illinois Secured Choice Savings Program Act. This law requires Illinois employers who (1) have been in business for 2 or more years and (2) have 25 or more employees provide a retirement savings program to their employees.
Under this law, covered employers must offer a retirement savings plan to employees or automatically enroll employees in the State retirement plan. Employees have the option to opt out of the program in writing, but if employees do not opt out, covered employers must deduct 3% of the employee’s compensation and deposit it in the State plan.
The Illinois Secured Choice Savings Program goes into effect on June 1, 2017. It is recommended that affected employers review their obligations under this new program and take steps to ensure that they are in compliance come June 1st.