Monday, December 8, 2014

Illinois Passes Mandatory Retirement Savings Bill

Recently, both houses in the state of Illinois passed Bill SB2758 which creates the Illinois Secure Choice Savings Program Act. This bill mandates a savings plan requirement for employers with over
25 employees, and the governor is expected to sign it. While most of the agent and adviser groups in Illinois lobbied against this bill, the proponents had a strong push from several groups including the Society of Pension Professionals and AARP.

As a professional working with business owners and individuals, you should be aware of this legislation. Employers must initiate their own plan or be required to submit to the State of Illinois plan which the state will operate. Unless they opt out, private-sector employees will have to give up 3% of their paycheck to this program. 

This bill will drain Illinois of additional costs to administer it and compete with the already established private market for retirement savings alternatives provided by insurance companies, stock brokers, mutual funds, credit unions and banks. 

Get specif details to the Secure Choice Savings Program as it is written from the Illinois General Assembly website