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| Public Act 103-0681
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| HB4719 Enrolled | LRB103 36560 SPS 66667 b |
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AN ACT concerning employment.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Illinois Secure Choice Savings Program Act |
is amended by changing Sections 60 and 85 as follows:
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(820 ILCS 80/60) |
Sec. 60. Program implementation and enrollment. Except as |
otherwise provided in Section 93 of this Act, the Program |
shall be implemented, and enrollment of employees shall begin |
in 2018. The Board shall establish an implementation timeline |
under which employers shall enroll their employees in the |
Program. The timeline shall include the date by which an |
employer must begin enrollment of its employees in the Program |
and the date by which enrollment must be complete. The Board |
shall adopt the implementation timeline at a public meeting of |
the Board and shall publicize the implementation timeline. The |
Board shall provide advance notice to employers of their |
enrollment date and the amount of time to complete enrollment. |
The enrollment deadline for employers with fewer than 25 |
employees and more than 15 employees shall be no sooner than |
September 1, 2022. The enrollment deadline for employers with |
at least 5 employees but not more than 15 employees shall be no |
sooner than September 1, 2023. The provisions of this Section |
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shall be in force after the Board opens the Program for |
enrollment. |
(a) Each employer shall establish a payroll deposit |
retirement savings arrangement to allow each employee to |
participate in the Program within the timeline set by the |
Board after the Program opens for enrollment. |
(b) Employers shall automatically enroll in the Program |
each of their employees who has not opted out of participation |
in the Program in the manner using the form described in |
subsection (c) of Section 55 of this Act and shall provide |
payroll deduction retirement savings arrangements for such |
employees and deposit, on behalf of such employees, these |
funds into the Program. Small employers may, but are not |
required to, provide payroll deduction retirement savings |
arrangements for each employee who elects to participate in |
the Program. Utilization of automatic enrollment by small |
employers may be allowed only if it does not create employer |
liability under the federal Employee Retirement Income |
Security Act. |
(c) Enrollees shall have the ability to select a |
contribution level into the Fund. This level may be expressed |
as a percentage of wages or as a dollar amount up to the |
deductible amount for the enrollee's taxable year under |
Section 219(b)(1)(A) of the Internal Revenue Code. Enrollees |
may change their contribution level at any time, subject to |
rules promulgated by the Board. If an enrollee fails to select |
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a contribution level using the form described in subsection |
(c) of Section 55 of this Act, then he or she shall contribute |
the default contribution rate of his or her wages to the |
Program, provided that such contributions shall not cause the |
enrollee's total contributions to IRAs for the year to exceed |
the deductible amount for the enrollee's taxable year under |
Section 219(b)(1)(A) of the Internal Revenue Code. |
(d) Enrollees may select an investment option from the |
permitted investment options listed in Section 45 of this Act. |
Enrollees may change their investment option at any time, |
subject to rules promulgated by the Board. In the event that an |
enrollee fails to select an investment option, that enrollee |
shall be placed in the investment option selected by the Board |
as the default under subsection (c) of Section 45 of this Act. |
If the Board has not selected a default investment option |
under subsection (c) of Section 45 of this Act, then an |
enrollee who fails to select an investment option shall be |
placed in the life-cycle fund investment option. |
(e) Following initial implementation of the Program |
pursuant to this Section, at least once every year, |
participating employers may shall designate an open enrollment |
period during which employees who previously opted out of the |
Program may enroll in the Program. |
(f) (Blank). An employee who opts out of the Program who |
subsequently wants to participate through the participating |
employer's payroll deposit retirement savings arrangement may |
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only enroll during the participating employer's designated |
open enrollment period or if permitted by the participating |
employer at an earlier time. |
(g) Employers shall retain the option at all times to set |
up a qualified retirement plan, including, but not limited to, |
any type of employer-sponsored retirement plan, such as a |
defined benefit plan or a 401(k), a Simplified Employee |
Pension (SEP) plan, or a Savings Incentive Match Plan for |
Employees (SIMPLE) plan, or to offer an automatic enrollment |
payroll deduction IRA, instead of facilitating their |
employees' having a payroll deposit retirement savings |
arrangement to allow employee participation in the Program. |
(h) An employee may terminate his or her participation in |
the Program at any time in a manner prescribed by the Board. |
(i) The Board shall establish and maintain an Internet |
website designed to assist employers in identifying private |
sector providers of retirement arrangements that can be set up |
by the employer rather than allowing employee participation in |
the Program under this Act; however, the Board shall only |
establish and maintain an Internet website under this |
subsection if there is sufficient interest in such an Internet |
website by private sector providers and if the private sector |
providers furnish the funding necessary to establish and |
maintain the Internet website. The Board must provide public |
notice of the availability of and the process for inclusion on |
the Internet website before it becomes publicly available. |