1 year, 7 months ago by
Bill would force employers to set up IRA's and automatically deduct 3 percent from employees' checks
A bill has passed in the Illinois Senate that would force employers to establish Individual Retirement Accounts for their employees
SB 2758, passed Wednesday by a 30-22-2. Sen. John Sullivan (D-Rushville) was one of the two present votes.
The Bill mandates employers set up an automatic Individual Retirement Account for their employees, a system to be administered by the Illinois Dept. of Revenue and a newly created Board led by the Illinois Treasurer. The legislation targets small businesses with 25 or more employees and forces them to not only set up the accounts but also automatically deduct at least 3% from their employees’ paychecks.
An employee would have to actively pursue “opting out” if they did not want to participate. The bill doesn't force employers to match their employee contributions
The measure now moves to the Illinois House.
The bill is dubbed the The Illinois Secure Choice Savings Program and is supported by AARP Illinois, Illinois Asset Building Group, Sargent Shriver National Center on Poverty Law, Woodstock Institute, Heartland Alliance, SEIU Illinois/Indiana and over 45 other businesses, associations and advocacy groups.