Illinois Amends Auto-IRA Program

Governor J.B. Pritzker has signed into law amendments to the Illinois Secure Choice program. The amendments clarify that the account established under the program shall be portable and allow an enrollee to make contributions from multiple employers into a single account, and that an enrollee may have both a Roth IRA and a traditional IRA. Responsibilities of the Illinois Secure Choice Savings Board regarding entering into agreements with other governmental entities have been modified “to assess the feasibility of agreements with other governmental entities to achieve economies of scale through shared resources if beneficial”. The employee information packet is also modified to include information on how an enrollee can select a custom contribution rate, rather than a form election other than the default. The amendments direct employers to automatically enroll employees within 120 after the employee is first hired by the employer.

The amendments to the program are effective upon enactment.