Effective February 8, 2022, the automatic escalation provisions of the Illinois Secure Choice Retirement Savings Program took effect. Under these provisions, employees who have been enrolled in the program for at least six months will have their contribution automatically increased by one percent each subsequent calendar year. However, the employee has the right to opt out of the contributions and/or the automatic increase.
As background, since November 1, 2018, employers with 500 or more employees and who have been in business for at least two years have been required to offer an employer sponsored retirement plan to employees or participate in the state’s Secure Choice Retirement Savings Program. The implementation dates for other sized employers are as follows. Employer size is based on the number of employees working in the state of Illinois in the previous calendar year.
Employers who are required to participate in the program must auto-enroll employees and notify them of the opt-out procedures. The standard contribution is five percent of gross earnings on a post-tax basis, with contributions going into a Roth IRA.
Enforcement of the program requirements also commences in 2022. Additional information, including the registration link and required employee information packet, are available on the program website.
Illinois Secure Choice Retirement Savings Program »
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