November 8th marks the deadline for the third and final implementation phase of the Illinois Secure Choice Savings Program, the state’s new retirement savings program for individual workers who lack access to a qualified private plan through their employers.
Under the terms of the program, Illinois employers with 25 or more employees who don’t offer a private retirement savings plan must automatically enroll their employees in Secure Choice. Implementation began with a Pilot Phase in May 2018 and proceeded in three subsequent waves based on company size. The upcoming November 8th deadline covers employers with 25-99 employees.
Employers who are subject to the program’s guidelines have every reason to participate.
For one, it’s mandatory, and failure to comply can be expensive. The law calls for fines of $250 per employee for the first year, $500 the following year.
For another, it’s extremely easy and costs nothing. The program is administered by the Illinois Department of Revenue and contributions are made via payroll deduction.
Finally, it’s the right thing to do. When fully implemented, Secure Choice will give an estimated 1.2 million workers access to a viable retirement plan that will allow them to build savings in individual accounts which they own and can take with them from job to job.
For more information about the Secure Choice program, check out https://illinoistreasurer.gov/Individuals/Secure_Choice and ILSecureChoice.com.