Jan. 05--Most businesses in Illinois will soon be required by law to offer a retirement savings plan for employees.
The law signed by Gov. Pat Quinn on Sunday requires all businesses in operation for at least two years and that have at least 25 employees to offer its workers an individual retirement savings option. Those without a work-based savings plan such as pension or 401(k) can join the newly created Illinois Secure Choice Savings Program, which comes with a default 3 percent payroll deduction.
"This is a special, I think, opportunity, for all of us to go forward at helping people save for retirement," Quinn said with about a week left in his term.
Employees can opt out or lower their contribution amounts, although officials said they expect as few as 10 percent of the 2.5 million private sector employees expected to join the state program to do so. A match or employer contribution is not required, and no public dollars will be invested.
Money going into the Secure Choice program will be pooled as private property and will not available to the state, officials said. A seven-member board will chose a private firm to manage the funds. Treasurer-elect Mike Frerichs will be on the board, as will the state comptroller, Quinn said.
The program will begin June 1 and must be implemented within two years.
saho@tribpub.com
