We are finally getting some better numbers on the Illinois Secure Choice program, which has officially been around for more than one year, ever since the first tier of employers with 500 or more employees had to be registered by November 1, 2018.
- To date, roughly 4,691 businesses are participating in the program.
- According to Illinois Treasurer Michael W. Frerichs, the Illinois Secure Choice program has attracted 32,000 participants and $8.5 million in retirement savings assets in its first year of business.
- This unfortunately means an average IRA account of a little over $265 with about 7 people saving for each company. That’s a lot of work for employers for such small participation numbers.
- Approximately 19,000 businesses have not signed up or confirmed they currently offer another retirement plan. These businesses face potential fines of $250 per employee for the first year and $500 per employee starting in year two. State officials claim they are focusing for now on education, rather than enforcement, but that won’t last very long. The state has the potential to collect over $118 million in fines. If you are one of the 19,000 employers currently not signed up or you are signed up but are beginning to see how cumbersome the Illinois plan is, contact Associated Pension Services, Inc.
If you have any questions, need additional information, or would like to talk about other retirement plan options, please do not hesitate to contact Associated Pension Services, Inc. We have been involved in the retirement plan administration business for over 30 years, helping small business owners and HR managers like yourself navigate, establish, and implement retirement solutions. You don't need to go at this alone.
Frederic (Eric) Hoffman, IV, AIF®, CPFA, APR, RICP®