Illinois Rolls Out 'Secure Choice,' Government-Administered Retirement Plan

Craig Dellimore
April 20, 2018 - 11:16 am

CHICAGO (WBBM NEWSRADIO) -- The Illinois State Treasurer’s office is working with employers around the state to offer workers without retirement plans a way to easily establish them. And you can take it with you.

The Illinois Legislature, three years ago, voted to require all employers that have been in business for two years and have at least 25 employees to either offer their own retirement plan or participate in government-administered plan. State Treasurer Michael Frerichs said Illinois’ pilot program has started. The program is called “Secure Choice.”

"This is Illinois' Secure Choice. It is a portable savings vehicle for about 1.2 million employees in the state of Illinois," he said. 

State Treasurer Michael Frerichs said companies that have been in business at least two years and have at least 25 employees will be required to offer their own retirement plans for workers or participate in Secure Choice. 

"We have a retirement crisis here in this country. People are not saving enough for retirement and we are going to offer them the tool they need to save their own money so that they can enjoy their golden years," he said.

The state is rolling out the program now, with employers who have volunteered.

"Employers don't have to contribute. It doesn't cost them anything. This is not using tax payer dollars. This is not social security. This is helping people save their own money," Frerichs said.

So what makes it easy? It’s funded through automatic payroll deductions. Workers can opt out.

And if you switch jobs, he said, the plan follows you.