CHICAGO — Nearly half of working adults don’t have a retirement plan at work.
Illinois’ state-administered program, the Secure Choice Retirement Plan, has been designed to combat the retirement savings crisis that is threatening workers nationwide.
“Right now we have over 32,000 new savers, with about 4,600 employers throughout the state,” said Illinois Treasurer Michael Frerichs.
In the first year, Illinois workers have already invested $8.5 million with Secure Choice.
“The investments are portable, meaning they remain with the employees rather than the employer,” Frerichs said.
Illinois employers, with 25 workers or more, now offer Secure Choice as required by state law.
The default investment for employees is 5% of their paycheck, but Frerichs said that amount can be raised or lowered, or the employee can opt out of the program entirely.
Employers who do not offer their own retirement plan and do not participate in Secure Choice face a $250 fine for each employee in the first year and a $500 fine for each employee in subsequent years.
The Secure Choice program is managed on a day-to-day basis by Ascensus, a private-sector financial services firm. For more information click HERE.
Illinois was the first state in the nation to authorize such a retirement savings program. Oregon and California have similar programs in place. Several other states including Connecticut and Maryland are expected to launch programs in 2020.
