Illinois Enacts Small Business Retirement Program Act

The Illinois Secure Choice Savings Program Act (the Act) (S.B. 2758), which takes effect on June 1, requires certain employers to automatically enroll their employees in individual retirement accounts. The program under the Act will be implemented and enrollment of employees will begin within two years after June 1.

Employers (whether for-profit or non-profit) with at least 25 employees, who have been in business for at least two years and have not offered a tax-qualified retirement plan (such as a 401(k) plan) to their employees in the preceding two years, must implement the program under the Act. The program requires administration of payroll deductions and remittance of employee contributions into Secure Choice accounts for each covered employee using existing payroll systems.