The Expanded Illinois Secure Choice Retirement Savings Program Will Soon Cover Small Employers
The Illinois Secure Choice Retirement Savings Program (“SCRSP”) is a retirement savings instrument for private sector workers in Illinois who do not have access to an employer-sponsored plan. Recent legislation expands the SCRSP to cover employers with five or more employees. Previously, the SCRSP applied only to employers with 25 or more employees that had been operating in Illinois for at least two years and did not offer a qualified retirement plan.
The SCRSP requires covered employers to distribute information provided by the SCRSP, facilitate employee enrollment in the SCRSP, and remit contributions to the SCRSP via employee payroll deductions. The new legislation also includes annual automatic contribution increases up to 10% of wages (employees have the right to opt-out).
Employers will receive notifications of their obligations and applicable deadlines under the expanded SCRSP. The initial enrollment deadline will apply to employers with more than 15 employees and fewer than 25 employees and will occur no earlier than September 1, 2022. The second enrollment deadline will apply to employers with at least five but not more than 15 employees and will occur no earlier than September 1, 2023.
Smaller employers that will fall under the auspices of the expanded SCRSP should consult with experienced counsel to assure compliance with the SCRSP.
If you have any questions regarding the SCRSP, please contact Mitchell Chaban at mchaban@lgattorneys or (312) 368-0100.