Illinois to start program to boost retirement savings

CHAMPAIGN, Ill. — Illinois will soon begin a program requiring many employers to help create voluntary retirement-savings plans for employees and offer automatic payroll deductions.

State Treasurer Mike Frerichs tells the News-Gazette that Secure Choice could eventually cover 1.2 million Illinois residents.

Frerichs said Wednesday that businesses that have been operating for two years and have at least 25 employees must either create their own retirement plan or participate in Secure Choice. Employers aren’t required to contribute to the program or pay a fee to participate.

Frerichs says employees will automatically have 5 percent of their income put into a savings account, but that percentage can be changed. Employees may also opt out of the program.

The program will begin next month with employers who have volunteered to participate.