STATE RETIREMENT PLAN MANDATE PLANS WILL BE REQUIRED FOR EMPLOYERS WITH 5+ EMPLOYEES

Last November, Illinois state law began requiring Illinois employers with sixteen (16) or more full-time and/or part-time (FT/PT) employees to offer their own retirement program, either through a private plan or through Illinois Secure Choice, a retirement program offered through the Illinois State Treasurer’s office.

Employers who do not comply with the law are subject to fines and penalties as described in 820 ILCS 80/85. Employers are not required to contribute financially to these programs.

Employers that meet the following criteria must comply with the law:

• Employ sixteen (16) or more FT and/or PT employees

• Business operating at least two years

• Currently do not offer a qualified saving plan such as a 401(k), SEP IRA, or Simple IRA

Later this year (November 1, 2023), employers with five (5) or more FT and/or PT employees will be required to comply with the law.

The Chamber offers an alternative to Secure Choice called Signature Fiduciary Connect by John Hancock, which offers small to mid-size companies a simple, flexible and easy to administer plan. BOS Investment Services serves as a financial advisor for the plan.

Regardless of whether your business selects a private plan or Illinois Secure Choice, it is important that your business is compliant with the law to avoid the fines and penalties.

If you have questions about this requirement and/or Signature Fiduciary Connect, go to www.gscc.org/retirement-program or contact Mike Murphy at mmurphy@gscc.org or 217-525-1173 ext. 205.