SPRINGFIELD – State Senator Robert Martwick (D-Chicago) championed an expansion of the Secure Choice Savings Program Act, Illinois’ landmark program to help everyone save for retirement, which was signed by the governor on Friday.
“Far too many American’s are not saving enough for retirement, mainly because their employer offers no program to help them save,” Martwick said. “Expanding the Secure Choice Savings Program to smaller businesses will help thousands of hardworking people save responsibly for their retirement.”
The program creates a default retirement savings program for people whose employers don’t provide retirement plans, which they must opt out of if they don’t want to participate.
The legislation expands the Secure Choice Savings Program to include employers with five or more employees, down from the current threshold of 25. It also allows the Secure Choice Savings Board to establish automatic contribution increases up to 10% of the enrollee’s wage as the default savings option.
“This program is good for families and will help future generations of Illinois taxpayers,” Martwick said. “When people save for retirement, they not only live their golden years with dignity, but also ease pressure on future government budgets and help drive our economy.”
House Bill 117 takes effect Jan. 1, 2022, and the expansion must be fully implemented by Sept. 1, 2023.