Bill Text: IL SB1441 | 2025-2026 | 104th General Assembly | Introduced

---

Bill Title: Amends the Illinois Secure Choice Savings Program Act. Provides that the accounts established under the Secure Choice Savings Program shall be IRAs, into which enrollees contribute funds that are invested in investment options established by the Illinois Secure Choice Savings Board. Provides that a separate account shall be established for each enrollee and the accounts shall be owned by the enrollee. Provides that the savings accounts established under the Program shall be portable and allow for an enrollee to make contributions from multiple employers into a single account. Provides that an enrollee in the Program may have both a Roth IRA and a Traditional IRA through the Program. Provides that the Board shall have the duty to assess the feasibility of agreements with other governmental entities, including other states and their agencies and instrumentalities, to achieve greater economies of scale through shared resources and to enter into those agreements if determined to be beneficial. Provides that an employer who fails without reasonable cause to enroll an employee in the Program within the time provided and fails to remit their contributions (rather than fails without reasonable cause to enroll an employee in the Program within the time provided) shall be subject to a penalty. Makes changes in provisions concerning employer and employee information packets. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-20 - Postponed - State Government [SB1441 Detail]

Download: Illinois-2025-SB1441-Introduced.html

---

104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1441 Introduced 1/31/2025, by Sen. Robert Peters SYNOPSIS AS INTRODUCED:
820 ILCS 80/10
820 ILCS 80/30
820 ILCS 80/55
820 ILCS 80/85
Amends the Illinois Secure Choice Savings Program Act. Provides that the accounts established under the Secure Choice Savings Program shall be IRAs, into which enrollees contribute funds that are invested in investment options established by the Illinois Secure Choice Savings Board. Provides that a separate account shall be established for each enrollee and the accounts shall be owned by the enrollee. Provides that the savings accounts established under the Program shall be portable and allow for an enrollee to make contributions from multiple employers into a single account. Provides that an enrollee in the Program may have both a Roth IRA and a Traditional IRA through the Program. Provides that the Board shall have the duty to assess the feasibility of agreements with other governmental entities, including other states and their agencies and instrumentalities, to achieve greater economies of scale through shared resources and to enter into those agreements if determined to be beneficial. Provides that an employer who fails without reasonable cause to enroll an employee in the Program within the time provided and fails to remit their contributions (rather than fails without reasonable cause to enroll an employee in the Program within the time provided) shall be subject to a penalty. Makes changes in provisions concerning employer and employee information packets. Effective immediately.
LRB104 07365 SPS 17405 b
A BILL FOR
SB1441 LRB104 07365 SPS 17405 b
AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Secure Choice Savings Program Act
is amended by changing Sections 10, 30, 55, and 85 as follows:
(820 ILCS 80/10)
Sec. 10. Establishment of Illinois Secure Choice Savings
Program.
(a) A retirement savings program in the form of an
automatic enrollment payroll deduction IRA, known as the
Illinois Secure Choice Savings Program, is hereby established
and shall be administered by the Board for the purpose of
promoting greater retirement savings for private-sector
employees in a convenient, low-cost, and portable manner.
(b) The accounts established under this Program shall be
IRAs, into which enrollees contribute funds that are invested
in investment options established by the Board. A separate
account shall be established for each enrollee and the
accounts shall be owned by the enrollee.
(c) The savings accounts established under the Program
shall be portable and allow for an enrollee to make
contributions from multiple employers into a single account,
either simultaneously or separately throughout the enrollee's

SB1441 - 2 - LRB104 07365 SPS 17405 b
lifetime.
(d) An enrollee in the Program may have both a Roth IRA and
a Traditional IRA through the Program.
(Source: P.A. 98-1150, eff. 6-1-15.)
(820 ILCS 80/30)
Sec. 30. Duties of the Board. In addition to the other
duties and responsibilities stated in this Act, the Board
shall:
(a) Cause the Program to be designed, established and
operated in a manner that:
(1) accords with best practices for retirement
savings vehicles;
(2) maximizes participation, savings, and sound
investment practices;
(3) maximizes simplicity, including ease of
administration for participating employers and
enrollees;
(4) provides an efficient product to enrollees by
pooling investment funds;
(5) ensures the portability of benefits; and
(6) provides for the deaccumulation of enrollee
assets in a manner that maximizes financial security
in retirement.
(b) Appoint a trustee to the IRA Fund in compliance
with Section 408 of the Internal Revenue Code.

SB1441 - 3 - LRB104 07365 SPS 17405 b
(c) Explore and establish investment options, subject
to Section 45 of this Act, that offer employees returns on
contributions and the conversion of individual retirement
savings account balances to secure retirement income
without incurring debt or liabilities to the State.
(d) Establish the process by which interest,
investment earnings, and investment losses are allocated
to individual program accounts on a pro rata basis and are
computed at the interest rate on the balance of an
individual's account.
(e) Make and enter into contracts necessary for the
administration of the Program and Fund, including, but not
limited to, retaining and contracting with investment
managers, private financial institutions, other financial
and service providers, consultants, actuaries, counsel,
auditors, third-party administrators, and other
professionals as necessary.
(e-5) Conduct a review of the performance of any
investment vendors every 4 years, including, but not
limited to, a review of returns, fees, and customer
service. A copy of reviews conducted under this subsection
(e-5) shall be posted to the Board's Internet website.
(f) In collaboration with the State Treasurer,
determine the number and duties of staff members needed to
administer the Program and assemble such a staff.
(g) Cause moneys in the Fund to be held and invested as

SB1441 - 4 - LRB104 07365 SPS 17405 b
pooled investments described in Section 45 of this Act,
with a view to achieving cost savings through efficiencies
and economies of scale.
(h) Evaluate and establish the process by which an
enrollee is able to contribute a portion of his or her
wages to the Program for automatic deposit of those
contributions and the process by which the participating
employer provides a payroll deposit retirement savings
arrangement to forward those contributions and related
information to the Program, including, but not limited to,
contracting with financial service companies and
third-party administrators with the capability to receive
and process employee information and contributions for
payroll deposit retirement savings arrangements or similar
arrangements.
(i) Design and establish the process for enrollment
under Section 60 of this Act, including the process by
which an employee can opt not to participate in the
Program, select a contribution level, select an investment
option, and terminate participation in the Program.
(j) Evaluate and establish the process by which an
individual may voluntarily enroll in and make
contributions to the Program.
(k) Accept any grants, appropriations, or other moneys
from the State, any unit of federal, State, or local
government, or any other person, firm, partnership, or

SB1441 - 5 - LRB104 07365 SPS 17405 b
corporation solely for deposit into the Fund, whether for
investment or administrative purposes.
(l) Evaluate the need for, and procure as needed,
insurance against any and all loss in connection with the
property, assets, or activities of the Program, and
indemnify as needed each member of the Board from personal
loss or liability resulting from a member's action or
inaction as a member of the Board.
(m) Make provisions for the payment of administrative
costs and expenses for the creation, management, and
operation of the Program, including the costs associated
with subsection (b) of Section 20 of this Act, subsections
(e), (f), (h), and (l) of this Section, subsection (b) of
Section 45 of this Act, subsection (a) of Section 80 of
this Act, and subsection (n) of Section 85 of this Act.
Subject to appropriation, the State may pay administrative
costs associated with the creation and management of the
Program until sufficient assets are available in the Fund
for that purpose. Thereafter, all administrative costs of
the Fund shall be paid only out of moneys on deposit
therein. However, private funds or federal funding
received under subsection (k) of Section 30 of this Act in
order to implement the Program until the Fund is
self-sustaining shall not be repaid unless those funds
were offered contingent upon the promise of such
repayment. The Board shall keep investment fees as low as

SB1441 - 6 - LRB104 07365 SPS 17405 b
possible, but in no event shall they exceed 0.25% of the
total trust balance. The Board may charge administrative
fees, established by rule, that shall be consistent with
industry standards.
(n) Allocate administrative fees to individual
retirement accounts in the Program on a pro rata basis.
(o) Set minimum and maximum contribution levels in
accordance with limits established for IRAs by the
Internal Revenue Code.
(o-5) Select a default contribution rate for Program
participants within the range of 3% to 6% of an enrollee's
wages.
(o-10) Establish annual, automatic increases to the
contribution rates based upon a schedule provided for in
rules up to a maximum of 10% of an enrollee's wages.
(p) Facilitate education and outreach to employers and
employees.
(q) Facilitate compliance by the Program with all
applicable requirements for the Program under the Internal
Revenue Code, including tax qualification requirements or
any other applicable law and accounting requirements.
(q-5) Verify employee eligibility for auto-enrollment
in accordance with the Internal Revenue Code and
applicable Federal and State laws. The verification shall
include the rejection of any enrollee under 18 years of
age.

SB1441 - 7 - LRB104 07365 SPS 17405 b
(r) Carry out the duties and obligations of the
Program in an effective, efficient, and low-cost manner.
(s) Exercise any and all other powers reasonably
necessary for the effectuation of the purposes,
objectives, and provisions of this Act pertaining to the
Program.
(t) Deposit into the Illinois Secure Choice
Administrative Fund all grants, gifts, donations, fees,
and earnings from investments from the Illinois Secure
Choice Savings Program Fund that are used to recover
administrative costs. All expenses of the Board shall be
paid from the Illinois Secure Choice Administrative Fund.
(u) Assess the feasibility of agreements with other
governmental entities, including other states and their
agencies and instrumentalities, to achieve greater
economies of scale through shared resources and to enter
into those agreements if determined to be beneficial.
The Board may enter into agreements with other
governmental entities, including other states or their
agencies and instrumentalities, to enable residents of other
states to participate in the Program.
(Source: P.A. 102-179, eff. 1-1-22; 103-43, eff. 6-9-23.)
(820 ILCS 80/55)
Sec. 55. Employer and employee information packets and
disclosure forms.

SB1441 - 8 - LRB104 07365 SPS 17405 b
(a) Prior to the opening of the Program for enrollment,
the Board shall design and disseminate to all employers an
employer information packet and an employee information
packet, which shall include background information on the
Program, appropriate disclosures for employees, and
information regarding the vendor Internet website described in
subsection (i) of Section 60 of this Act.
(b) The Board shall provide for the contents of both the
employee information packet and the employer information
packet.
(c) The employee information packet shall include a
disclosure form. The disclosure form shall explain, but not be
limited to, all of the following:
(1) the benefits and risks associated with making
contributions to the Program;
(2) the mechanics of how to make contributions to the
Program;
(3) how to opt out of the Program;
(4) how to participate in the Program with a level of
employee contributions other than the default contribution
rate;
(5) the process for withdrawal of retirement savings;
(6) how to obtain additional information about the
Program;
(7) that employees seeking financial advice should
contact financial advisors, that participating employers

SB1441 - 9 - LRB104 07365 SPS 17405 b
are not in a position to provide financial advice, and
that participating employers are not liable for decisions
employees make pursuant to this Act;
(8) that the Program is not an employer-sponsored
retirement plan; and
(9) that the Program Fund is not guaranteed by the
State.
(d) The employee information packet shall also include a
form for an employee to note his or her decision to opt out of
participation in the Program and information on how or elect
to participate with a custom level of employee contributions
other than the default contribution rate.
(e) Participating employers shall supply the employee
information packet to employees upon launch of the Program.
Participating employers shall supply the employee information
packet to new employees at the time of hiring, and new
employees may opt out of participation in the Program or elect
to participate with a level of employee contributions other
than the default contribution rate at that time.
(Source: P.A. 100-6, eff. 6-30-17.)
(820 ILCS 80/85)
Sec. 85. Penalties.
(a) An employer who fails without reasonable cause to
enroll an employee in the Program within the time prescribed
under Section 60 of this Act and fails to remit their

SB1441 - 10 - LRB104 07365 SPS 17405 b
contributions shall be subject to a penalty equal to:
(1) $250 per employee for the first calendar year the
employer is noncompliant; or
(2) $500 per employee for each subsequent calendar
year the employer is noncompliant; noncompliance does not
need to be consecutive to qualify for the $500 penalty.
The Department shall determine total employee count using
the annual average from employer-reported quarterly data.
(b) After determining that an employer is subject to a
penalty under this Section for a calendar year, the Department
shall issue a notice of proposed assessment to such employer,
stating the number of employees for which the penalty is
proposed under item (1) of subsection (a) of this Section or
the number of employees for which the penalty is proposed
under item (2) of subsection (a) of this Section for such
calendar year, and the total amount of penalties proposed.
Upon the expiration of 120 days after the date on which a
notice of proposed assessment was issued, the penalties
specified therein shall be deemed assessed, unless the
employer had filed a protest with the Department under
subsection (c) of this Section or come into full compliance
with the Program as required under Section 60 of this Act.
If, within 120 days after the date on which it was issued,
a protest of a notice of proposed assessment is filed under
subsection (c) of this Section, the penalties specified
therein shall be deemed assessed upon the date when the

SB1441 - 11 - LRB104 07365 SPS 17405 b
decision of the Department with respect to the protest becomes
final.
(c) A written protest against the proposed assessment
shall be filed with the Department in such form as the
Department may by rule prescribe, setting forth the grounds on
which such protest is based. If such a protest is filed within
120 days after the date the notice of proposed assessment is
issued, the Department shall reconsider the proposed
assessment and shall grant the employer a hearing. As soon as
practicable after such reconsideration and hearing, the
Department shall issue a notice of decision to the employer,
setting forth the Department's findings of fact and the basis
of decision. The decision of the Department shall become
final:
(1) if no action for review of the decision is
commenced under the Administrative Review Law, on the date
on which the time for commencement of such review has
expired; or
(2) if a timely action for review of the decision is
commenced under the Administrative Review Law, on the date
all proceedings in court for the review of such assessment
have terminated or the time for the taking thereof has
expired without such proceedings being instituted.
(d) As soon as practicable after the penalties specified
in a notice of proposed assessment are deemed assessed, the
Department shall give notice to the employer liable for any

SB1441 - 12 - LRB104 07365 SPS 17405 b
unpaid portion of such assessment, stating the amount due and
demanding payment. If an employer neglects or refuses to pay
the entire liability shown on the notice and demand within 10
days after the notice and demand is issued, the unpaid amount
of the liability shall be a lien in favor of the State of
Illinois upon all property and rights to property, whether
real or personal, belonging to the employer, and the
provisions in the Illinois Income Tax Act regarding liens,
levies and collection actions with regard to assessed and
unpaid liabilities under that Act, including the periods for
taking any action, shall apply.
(e) An employer who has overpaid a penalty assessed under
this Section may file a claim for refund with the Department. A
claim shall be in writing in such form as the Department may by
rule prescribe and shall state the specific grounds upon which
it is founded. As soon as practicable after a claim for refund
is filed, the Department shall examine it and either issue a
refund or issue a notice of denial. If such a protest is filed,
the Department shall reconsider the denial and grant the
employer a hearing. As soon as practicable after such
reconsideration and hearing, the Department shall issue a
notice of decision to the employer. The notice shall set forth
briefly the Department's findings of fact and the basis of
decision in each case decided in whole or in part adversely to
the employer. A denial of a claim for refund becomes final 120
days after the date of issuance of the notice of the denial

SB1441 - 13 - LRB104 07365 SPS 17405 b
except for such amounts denied as to which the employer has
filed a protest with the Department. If a protest has been
timely filed, the decision of the Department shall become
final:
(1) if no action for review of the decision is
commenced under the Administrative Review Law, on the date
on which the time for commencement of such review has
expired; or
(2) if a timely action for review of the decision is
commenced under the Administrative Review Law, on the date
all proceedings in court for the review of such assessment
have terminated or the time for the taking thereof has
expired without such proceedings being instituted.
(f) No notice of proposed assessment may be issued with
respect to a calendar year after June 30 of the fourth
subsequent calendar year. No claim for refund may be filed
more than 1 year after the date of payment of the amount to be
refunded.
(g) The provisions of the Administrative Review Law and
the rules adopted pursuant to it shall apply to and govern all
proceedings for the judicial review of final decisions of the
Department in response to a protest filed by the employer
under subsections (c) and (e) of this Section. Final decisions
of the Department shall constitute "administrative decisions"
as defined in Section 3-101 of the Code of Civil Procedure. The
Department may adopt any rules necessary to carry out its

SB1441 - 14 - LRB104 07365 SPS 17405 b
duties pursuant to this Section.
(h) Whenever notice is required by this Section, it may be
given or issued by mailing it by first-class mail addressed to
the person concerned at his or her last known address or in an
electronic format as determined by the Department.
(i) All books and records and other papers and documents
relevant to the determination of any penalty due under this
Section shall, at all times during business hours of the day,
be subject to inspection by the Department or its duly
authorized agents and employees.
(j) The Department may require employers to report
information relevant to their compliance with this Act on
returns otherwise due from the employers under Section 704A of
the Illinois Income Tax Act and failure to provide the
requested information on a return shall cause such return to
be treated as unprocessable.
(k) For purposes of any provision of State law allowing
the Department or any other agency of this State to offset an
amount owed to a taxpayer against a tax liability of that
taxpayer or allowing the Department to offset an overpayment
of tax against any liability owed to the State, a penalty
assessed under this Section shall be deemed to be a tax
liability of the employer and any refund due to an employer
shall be deemed to be an overpayment of tax of the employer.
(l) Except as provided in this subsection, all information
received by the Department from returns filed by an employer

SB1441 - 15 - LRB104 07365 SPS 17405 b
or from any investigation conducted under the provisions of
this Act shall be confidential, except for official purposes
within the Department or pursuant to official procedures for
collection of penalties assessed under this Act. Nothing
contained in this subsection shall prevent the Director from
publishing or making available to the public reasonable
statistics concerning the operation of this Act wherein the
contents of returns are grouped into aggregates in such a way
that the specific information of any employer shall not be
disclosed. Nothing contained in this subsection shall prevent
the Director from divulging information to an authorized
representative of the employer or to any person pursuant to a
request or authorization made by the employer or by an
authorized representative of the employer.
(m) Civil penalties collected under this Act and fees
collected pursuant to subsection (n) of this Section shall be
deposited into the Tax Compliance and Administration Fund. The
Department may, subject to appropriation, use moneys in the
fund to cover expenses it incurs in the performance of its
duties under this Act. Interest attributable to moneys in the
Tax Compliance and Administration Fund shall be credited to
the Tax Compliance and Administration Fund.
(n) The Department may charge the Board a reasonable fee
for its costs in performing its duties under this Section to
the extent that such costs have not been recovered from
penalties imposed under this Section.

SB1441 - 16 - LRB104 07365 SPS 17405 b
(o) The Department shall post on its Internet website a
notice stating that this Section is operative and the date
that it is first operative. This notice shall include a
statement that rather than enrolling employees in the Program
under this Act, employers may set up a qualified retirement
plan, including, but not limited to, a defined benefit plan,
401(k) plan, a Simplified Employee Pension (SEP) plan, or a
Savings Incentive Match Plan for Employees (SIMPLE) plan. The
Board shall provide a link to the vendor Internet website
described in subsection (i) of Section 60 of this Act, if
applicable.
(Source: P.A. 102-179, eff. 1-1-22; 103-681, eff. 1-1-25.)
Section 99. Effective date. This Act takes effect upon
becoming law.