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IL SB1441

IL SB1441
SECURE CHOICE PROGRAM-IRAS


summary

Introduced
01/31/2025
In Committee
04/24/2025
Crossed Over
04/03/2025
Passed
08/01/2025
Dead
Signed/Enacted/Adopted
08/01/2025

Introduced Session

104th General Assembly

Bill Summary

Amends the Illinois Secure Choice Savings Program Act. Provides that the accounts established under the Secure Choice Savings Program shall be IRAs, into which enrollees contribute funds that are invested in investment options established by the Illinois Secure Choice Savings Board. Provides that a separate account shall be established for each enrollee and the accounts shall be owned by the enrollee. Provides that the savings accounts established under the Program shall be portable and allow for an enrollee to make contributions from multiple employers into a single account. Provides that an enrollee in the Program may have both a Roth IRA and a Traditional IRA through the Program. Provides that the Board shall have the duty to assess the feasibility of agreements with other governmental entities, including other states and their agencies and instrumentalities, to achieve greater economies of scale through shared resources and to enter into those agreements if determined to be beneficial. Provides that an employer who fails without reasonable cause to enroll an employee in the Program within the time provided and fails to remit their contributions (rather than fails without reasonable cause to enroll an employee in the Program within the time provided) shall be subject to a penalty. Makes changes in provisions concerning employer and employee information packets. Effective immediately.

AI Summary

This bill amends the Illinois Secure Choice Savings Program Act to enhance and clarify the details of a state-sponsored retirement savings program for private-sector employees. The bill establishes that the program will create Individual Retirement Accounts (IRAs) for employees, with each enrollee having a separate account that they own. The accounts will be portable, allowing workers to contribute from multiple employers into a single account, and participants can have both a Roth and Traditional IRA through the program. The bill expands the Board's responsibilities to include assessing the feasibility of agreements with other governmental entities to achieve greater economies of scale. Additionally, the bill modifies penalty provisions for employers who fail to enroll employees in the program, now specifically linking penalties to the failure to remit contributions. The legislation aims to provide a convenient, low-cost retirement savings option for private-sector workers who do not have access to employer-sponsored retirement plans, with features like automatic enrollment, default contribution rates, and flexible investment options. The program is designed to be voluntary for employees, who can opt out or adjust their contribution levels, and is intended to promote greater retirement savings in a simple and accessible manner.

Committee Categories

Government Affairs, Labor and Employment

Sponsors (5)

Last Action

Public Act . . . . . . . . . 104-0100 (on 08/01/2025)

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