If you own a business in Illinois, you're familiar with the struggle to stay in compliance with local laws. In 2015, Illinois lawmakers passed the Illinois Secure Choice Retirement Savings Program (Secure Choice). The program is meant to help businesses that do not already have a retirement savings program. It is mandatory for those businesses.
Secure Choice is the first of its kind in the U.S. Early on, it made impressive strides. Nearly six dozen employers have participated since November 2018, when larger businesses were able to start enrolling.
On July 1st, businesses with 100 to 499 employees were able to begin enrolling in the Secure Choice program. On November 1st, businesses with 25 to 99 employees can start enrolling. Businesses with 500 or more employees have been able to enroll since November of 2018.
Why is the Secure Choice a good fit for Illinois?
Do you know how much money you will need to retire comfortably? Regardless of your personal figures, Social Security will probably not be enough. The Secure Choice program is important for small businesses for the following reasons:
- It keeps small businesses competitive in Illinois
- It encourages employees of small businesses to save for retirement
- It may help small businesses attract and keep employees (both younger and older)
Secure Choice savings accounts will affect your business. You will now have a retirement savings program for your employees to look forward to, a program that could improve their life even after they retire.
However, you must also prepare to handle any questions, concerns, or liabilities this program could introduce to the work setting. The official website is a helpful resource to handle common questions, but if you have legal concerns, it may be wise to explore your options before the changes go into effect.
With a legal representative on hand, you can help to protect your business from this upcoming change, and all updates that may follow. The more prepared you are, the better framework you can create for your business.