Jackson Lewis P.C.
By Kent Maze
August 5, 2021
Employers in Illinois with at least 5 employees must soon comply with the Illinois Secure Choice Savings Program Act (Secure Choice) or offer employees an employer-sponsored retirement plan.
Background
Secure Choice requires employers to automatically withhold five percent of an employee’s compensation (up to the annual maximum allowed for IRA contributions each year as provided by the IRS), unless the employee elects a different amount or opts out of the program, and to remit those contributions to the Secure Choice program.
Under the original program, employers that satisfy these criteria are subject to the Secure Choice program:
You can find more detailed information about the originally-enacted Secure Choice program on our blog (available here).
New Requirements
The newly enacted law makes several notable changes to Secure Choice, including:
When Effective
The program will notify employers before their scheduled start time to allow them time to register. The schedule is:
Wave 1: The enrollment deadline for employers with fewer than 25 employees and more than 15 employees will be no sooner than September 1, 2022
Wave 2: The enrollment deadline for employers with at least 5 employees but not more than 15 employees will be no sooner than September 1, 2023.
The Illinois Secure Choice website provides additional information, including FAQs.
If you have questions or would like assistance in understanding your company’s obligations under Illinois Secure Choice, don’t hesitate to contact a team member or the Jackson Lewis attorney with whom you regularly work.
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