What Illinois Employers Need to Know About New Required Retirement Plan
May 07, 2018
A new retirement plan called Illinois Secure Choice is being introduced in Illinois. For the first several months, this program will be voluntary, but beginning in November 2018, employers with 25 or more employees will be legally required to participate in this plan.
Starting in November 2018, employers will be notified of their legal requirement to participate in the program. Employers in Illinois that have 25 or more employees, have been in operation for at least two years, and that don’t offer a qualified savings plan (e.g., a 401(k) plan) will be forced to automatically enroll their employees into Secure Choice.
Employees can opt-out at any time. Employers will be responsible for dispersing information packets (provided by Secure Choice) to each of their employees. Employers will also facilitate enrollment of employees into Secure Choice, set up the payroll deduction process, and remit employee contributions to the plan provider. Employers who do not comply with the Illinois Secure Choice Savings Program Act may be subject to fines and penalties.
Instead of participating in Illinois Secure Choice, an employer can choose to offer an employer-sponsored plan.