The Illinois Secure Choice Savings Program Act, also known as the IL Secure Choice Act, is a state-sponsored retirement savings program that provides employees with a way to save for retirement. The program is designed to help workers who do not have access to a retirement savings plan through their employer, and it aims to increase retirement savings and reduce financial insecurity for workers.
Who is impacted by the IL Secure Choice Act?
The IL Secure Choice Act impacts employers who have at least 25 employees and who do not currently offer a retirement savings plan, such as a 401(k) plan or a pension plan. Under the Act, these employers are required to enroll their eligible employees in the IL Secure Choice program or provide an alternative retirement savings plan.
Why is the IL Secure Choice Act important?
The IL Secure Choice Act is important because it helps to address the retirement savings crisis in the United States. According to a recent study by the National Institute on Retirement Security, nearly 60% of American workers do not have access to a retirement savings plan through their employer. This means that millions of workers are at risk of not having enough savings to support themselves in retirement.
By requiring employers to provide a retirement savings plan or enroll their employees in the IL Secure Choice program, the Act helps to ensure that more workers have access to a way to save for retirement. This can help to reduce financial insecurity and improve retirement outcomes for workers.
When do I need to comply?
The IL Secure Choice Act was signed into law in 2015, but its implementation has been phased in gradually. Employers with 500 or more employees were required to register with the program and begin offering the program to eligible employees in 2018.
Employers with 100-499 employees were required to register with the program and begin offering the program to eligible employees in 2019.
Employers with 25-99 employees are required to register with the program and begin offering the program to eligible employees in 2022.
It’s worth noting that the IL Secure Choice program is available to all Illinois employers, regardless of their size, and employers who voluntarily participate in the program may also be subject to the Act’s requirements.
Partner with EvolveHR
EvolveHR offers a Pooled Employer Plan (PEP) to help employers meet the IL Secure Choice Act requirement. A PEP is a type of 401(k) plan that allows multiple employers to participate and share administrative responsibilities, which can help to reduce costs and simplify the plan administration process.
Companies can partner with EvolveHR to join the PEP and offer their employees a retirement savings plan that meets the IL Secure Choice Act requirement. EvolveHR offers a turnkey solution that includes plan design, implementation, and ongoing administration, as well as investment options and education and support for employees.
In summary, the IL Secure Choice Act is an important initiative that helps to address the retirement savings crisis in the United States. Employers who are impacted by the Act can partner with EvolveHR to join the PEP and offer their employees a retirement savings plan that meets the requirement. By doing so, employers can help to improve retirement outcomes for their employees and meet their compliance obligations under the Act.
About EvolveHR
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EvolveHR provides HR consulting services, payroll administration, employee benefits administration, HRIS services, HR risk management, HR organizational development to small, midsize and enterprise clients.