This program requires that all Illinois employers begin offering the Illinois Secure Choice Savings Program if they do not already offer a retirement plan to their employees. Any company that meets the criteria below will be required to register:
The Illinois Secure Choice Program requires eligible employers to enroll its employees in a default Target Date Roth IRA with a 5% default payroll deduction. The employee may change the deduction amount or opt out of the plan at any time.
At the start of each Wave and after each subsequent employee hire thereafter, the employer has 30 days to enter and enroll its employees in Illinois Secure Choice, and then another 30 days to start the payroll deductions for the employees. Any employee who does not specifically opt out of the program will be automatically enrolled.
Additionally, any employer who is an “eligible employer” and who does not register for the Secure Choice Program, will be subject to penalties of $250 per employee for noncompliance during the first year. The penalty jumps up to $500 per employee for subsequent years. Additional penalties will be assessed for failure to remit deductions timely.
Example: An eligible employer with 25 employees who does not register for the program will be hit with a $6,250 penalty in year 1. The penalty will jump to $12,500 in year 2.
Employers who meet the criteria above may avoid enrolling in the Program by implementing a customized employer-sponsored retirement plan. Porte Brown LLC can help you with this process.
Contact Porte Brown's Retirement Benefits Practice Group leader Antonino Bondi at 847-956-1040. We will help evaluate, design, and implement the best retirement plan for your company.
Get in touch today and find out how we can help you meet your objectives.