Legislation sponsored by State Sen. Daniel Biss (D-Evanston) designed to create a workplace retirement savings program for 2.5 million Illinois workers has been approved by the state Senate and House.
What’s called the Illinois Secure Choice Savings Program, the first of its kind in the nation, passed the House Tuesday. The Senate, which first passed the measure in April, voted Wednesday to adopt several House amendments.
“Retirement insecurity for private sector workers is a serious and growing problem with a surprisingly commonsense, intuitive solution,” Biss said in a statement.
If signed into law by Gov. Quinn, as expected, Senate Bill 2758 will offer portable accounts to most employees who do not already have access to employer-based plans. New businesses and those with fewer than 25 workers can participate voluntarily. Workers can choose how much of their paychecks to invest and may opt out of the program at any time. Participants will also be able to select from higher-risk and lower-risk investment options.
Unlike pension plans, Secure Choice accounts will not be funded or guaranteed by the state or employers. Pooling the individual accounts will allow for lower fees and diversified, professionally managed investments. All administrative costs will be covered by participant contributions..