October 22nd, 2019
Wesley Covert at Laner Muchin
Illinois Small Employers May Need To Register For The Secure Choice Savings Program In November 2019
As we previously reported, Illinois implemented the Illinois Secure Choice Savings Program (Program), under which private sector workers in Illinois who do not have access to an employer-sponsored retirement plan will be automatically enrolled in Individual Retirement Accounts (IRAs) to which an automatic after-tax contribution of 5% of gross wages will be made.
Employees have the option to opt-out of the Program, which has already been notifying employers of the requirement to participate. Compliance has been implemented in three waves beginning: November 1, 2018, for employers with 500+ employees; July 2019, for employers with 100-499 employees; and November 2019, for employers with 25-99 employees. Employees of employers with fewer than 25 employees will not be automatically enrolled in the Program.
Employers that already offer a qualified retirement plan (e.g., a 401(k) plan, 403(b) plan, a Taft-Hartley plan, etc.), are exempt from registering with the Program, but doing so could come at a greater cost to employers. For more information about the Program, please see the Program’s website which may be found here.