The Illinois Secure Choice Act states that employers in Illinois who are not exempt will be required to either have a retirement savings program in place for their workforce or register under the Illinois Secure Choice Program. Most of the registration responsibilities are on the employee, but there are still tasks applicable employers must enact to ensure they are complying with state law.
If you meet the program’s eligibility criteria, you’ll be notified by the state of Illinois when it’s time for your company to register.
The deadline for registering was July 1, 2019, for employers with 100-499 employees. Employers with 25-99 employees, the registration deadline is November 1, 2019. Larger employers were required to register last year, although many large employers already have retirement plans for their employees. and they are exempt from this program. Employers that do not comply may be subject to fines and penalties.
Employers subject to this new program must share information about the program and help employees register for it. Employers must also set up the payroll deduction process and ensure timely remittance of employee contributions to the retirement plan provider.
Employers who provide 401(k), profit sharing plans, SEP or SIMPLE plans, and traditional defined benefit plans, are exempt from registering for this program. Also, employers with less than 25 employees and employers that have been in business for less than two years are exempt from this program.
For more information regarding the program, the Illinois Secure Choice Program website is a great resource that can address unanswered questions.