Illinois expands Secure Choice requirements

Illinois has enacted legislation (House Bill 117) that expands requirements related to the Illinois Secure Choice program to smaller employers. The changes take effect January 1, 2022.

Background:

Illinois Secure Choice is a state-based payroll withholding savings program using Roth (post-tax) individual retirement accounts. Prior to House Bill 117, all employers with 25 or more employees in the state during every quarter of the previous calendar year were required to register with the program if they didn’t offer a qualifying retirement plan and were in business at least two years. Employers required to participate in the program must also automatically enroll employees unless the employee opts out of it. These employers must also have an open enrollment period at least once every year for employees who previously opted out of the program.

House Bill 177:

Under House Bill 177, all employers with five or more employees in the state during every quarter of the previous calendar year must register with Illinois Secure Choice and follow the employer requirements if they don’t offer a qualifying retirement plan

Compliance Recommendations:

Employers that have five to 24 employees in Illinois and don’t offer a qualifying retirement plan should ensure compliance with the requirements of the Illinois Secure Choice program by the applicable deadline.