Secure Choice Savings Programs Act Changes
On July 15, 2016, Illinois Governor Bruce Rauner signed legislation (S.B. 2420) amending the state’s Secure Choice Savings Programs Act. The act requires Illinois businesses with at least 25 employees, that have been in business for two or more years, and that do not offer a qualified savings plan, to either offer a private market savings plan or automatically enroll their employees into Secure Choice. For participants in Secure Choice, employees will be auto enrolled into a target date Roth IRA with a 3 percent deduction, but will have the option to change their deduction, fund option, or opt out of the program entirely. The accounts are owned by each individual worker and will be portable from job to job. Enrollment is to begin in the summer of 2017.
In addition to other changes, Senate Bill 2420 amends the Secure Choice Savings Programs Act as follows:
- Provides that the total annual expenses, rather than the annual administrative expenses, may not exceed 0.75 percent of the total trust balance.
- Removes a requirement that the Secure Choice Board prepare a statement of investment policy annually.
- Provides that the investment policy must be published on the board’s or state treasurer’s website.
- Provides that small employers’ use of automatic enrollment is subject to federal rules.
The bill went into effect upon signing.
Read IL H.B. 2420
Human Trafficking Resource Center Notice Act Posting Requirements
On July 15, 2016, Illinois Governor Bruce Rauner signed legislation (S.B. 2286) amending the state’s Human Trafficking Resource Center Notice Act. The bill mandates that the required notice to be posted under the act must be posted, among other places, in the public restrooms of motels and hotels in clear view of the public and employees where similar notices are customarily posted.
The law goes into effect on July 1, 2017.
Read IL H.B. 2286