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| Public Act 103-0043
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| HB3155 Enrolled | LRB103 27572 SPS 53948 b |
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AN ACT concerning employment.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Secure Choice Savings Program Act |
is amended by changing Sections 5 and 30 as follows:
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(820 ILCS 80/5) |
Sec. 5. Definitions. Unless the context requires a |
different meaning or as expressly provided in this Section, |
all terms shall have the same meaning as when used in a |
comparable context in the Internal Revenue Code. As used in |
this Act: |
"Board" means the Illinois Secure Choice Savings Board |
established under this Act. |
"Department" means the Department of Revenue. |
"Director" means the Director of Revenue. |
"Employee" means any individual who is employed by an |
employer, and who has wages that are allocable to Illinois |
during a calendar year under the provisions of Section |
304(a)(2)(B) of the Illinois Income Tax Act. |
"Employer" means a person or entity engaged in a business, |
industry, profession, trade, or other enterprise in Illinois, |
whether for profit or not for profit, that (i) has employed at |
least 5 employees in the State during every quarter of the |
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previous calendar year, (ii) has been in business at least 2 |
years, and (iii) is not offering or contributing to has not |
offered a qualified retirement plan, including, but not |
limited to, a plan qualified under Section 401(a), Section |
401(k), Section 403(a), Section 403(b), Section 408(k), |
Section 408(p), or Section 457(b) of the Internal Revenue Code |
of 1986 in the preceding 2 years. "Employer" does not include |
the federal government, the State, any county, any municipal |
corporation, or any of the State's units or instrumentalities. |
"Enrollee" means any employee who is enrolled in the |
Program.
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"Fund" means the Illinois Secure Choice Savings Program |
Fund.
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"Internal Revenue Code" means Internal Revenue Code of |
1986, or any successor law, in effect for the calendar year.
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"IRA" means a Roth or Traditional IRA (individual |
retirement account) under Section 408 or 408A of the Internal |
Revenue Code.
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"Participating employer" means an employer or small |
employer that facilitates a payroll deposit retirement savings |
arrangement as provided for by this Act for its employees. |
"Payroll deposit retirement savings arrangement" means an |
arrangement by which a participating employer facilitates |
payroll deduction contributions from enrollees to the Program. |
"Program" means the Illinois Secure Choice Savings |
Program.
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"Small employer" means a person or entity engaged in a |
business, industry, profession, trade, or other enterprise in |
Illinois, whether for profit or not for profit, that (i) |
employed less than 5 employees during any quarter of the |
previous calendar year, or (ii) has been in business less than |
2 years, or both items (i) and (ii), but that notifies the |
Board that it is interested in being a participating employer. |
"Wages" means any compensation within the meaning of |
Section 219(f)(1) of the Internal Revenue Code that is |
received by an enrollee from a participating employer during |
the calendar year.
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(Source: P.A. 101-353, eff. 8-9-19; 102-179, eff. 1-1-22.)
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(820 ILCS 80/30) |
Sec. 30. Duties of the Board. In addition to the other |
duties and responsibilities stated in this Act, the Board |
shall: |
(a) Cause the Program to be designed, established and |
operated in a manner that: |
(1) accords with best practices for retirement |
savings vehicles; |
(2) maximizes participation, savings, and sound |
investment practices; |
(3) maximizes simplicity, including ease of |
administration for participating employers and |
enrollees; |
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(4) provides an efficient product to enrollees by |
pooling investment funds; |
(5) ensures the portability of benefits; and |
(6) provides for the deaccumulation of enrollee |
assets in a manner that maximizes financial security |
in retirement. |
(b) Appoint a trustee to the IRA Fund in compliance |
with Section 408 of the Internal Revenue Code. |
(c) Explore and establish investment options, subject |
to Section 45 of this Act, that offer employees returns on |
contributions and the conversion of individual retirement |
savings account balances to secure retirement income |
without incurring debt or liabilities to the State. |
(d) Establish the process by which interest, |
investment earnings, and investment losses are allocated |
to individual program accounts on a pro rata basis and are |
computed at the interest rate on the balance of an |
individual's account. |
(e) Make and enter into contracts necessary for the |
administration of the Program and Fund, including, but not |
limited to, retaining and contracting with investment |
managers, private financial institutions, other financial |
and service providers, consultants, actuaries, counsel, |
auditors, third-party administrators, and other |
professionals as necessary. |
(e-5) Conduct a review of the performance of any |
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investment vendors every 4 years, including, but not |
limited to, a review of returns, fees, and customer |
service. A copy of reviews conducted under this subsection |
(e-5) shall be posted to the Board's Internet website. |
(f) In collaboration with the State Treasurer, |
determine Determine the number and duties of staff members |
needed to administer the Program and assemble such a |
staff, including, as needed, employing staff, appointing a |
Program administrator, and entering into contracts with |
the State Treasurer to make employees of the State |
Treasurer's Office available to administer the Program. |
(g) Cause moneys in the Fund to be held and invested as |
pooled investments described in Section 45 of this Act, |
with a view to achieving cost savings through efficiencies |
and economies of scale. |
(h) Evaluate and establish the process by which an |
enrollee is able to contribute a portion of his or her |
wages to the Program for automatic deposit of those |
contributions and the process by which the participating |
employer provides a payroll deposit retirement savings |
arrangement to forward those contributions and related |
information to the Program, including, but not limited to, |
contracting with financial service companies and |
third-party administrators with the capability to receive |
and process employee information and contributions for |
payroll deposit retirement savings arrangements or similar |
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arrangements. |
(i) Design and establish the process for enrollment |
under Section 60 of this Act, including the process by |
which an employee can opt not to participate in the |
Program, select a contribution level, select an investment |
option, and terminate participation in the Program. |
(j) Evaluate and establish the process by which an |
individual may voluntarily enroll in and make |
contributions to the Program. |
(k) Accept any grants, appropriations, or other moneys |
from the State, any unit of federal, State, or local |
government, or any other person, firm, partnership, or |
corporation solely for deposit into the Fund, whether for |
investment or administrative purposes.
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(l) Evaluate the need for, and procure as needed, |
insurance against any and all loss in connection with the |
property, assets, or activities of the Program, and |
indemnify as needed each member of the Board from personal |
loss or liability resulting from a member's action or |
inaction as a member of the Board. |
(m) Make provisions for the payment of administrative |
costs and expenses for the creation, management, and |
operation of the Program, including the costs associated |
with subsection (b) of Section 20 of this Act, subsections |
(e), (f), (h), and (l) of this Section, subsection (b) of |
Section 45 of this Act, subsection (a) of Section 80 of |
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this Act, and subsection (n) of Section 85 of this Act. |
Subject to appropriation, the State may pay administrative |
costs associated with the creation and management of the |
Program until sufficient assets are available in the Fund |
for that purpose. Thereafter, all administrative costs of |
the Fund, including repayment of any start-up funds |
provided by the State, shall be paid only out of moneys on |
deposit therein. However, private funds or federal funding |
received under subsection (k) of Section 30 of this Act in |
order to implement the Program until the Fund is |
self-sustaining shall not be repaid unless those funds |
were offered contingent upon the promise of such |
repayment. The Board shall keep investment fees total |
annual expenses as low as possible, but in no event shall |
they exceed 0.25% 0.75% of the total trust balance. The |
Board may charge administrative fees, established by rule, |
that shall be consistent with industry standards. |
(n) Allocate administrative fees to individual |
retirement accounts in the Program on a pro rata basis. |
(o) Set minimum and maximum contribution levels in |
accordance with limits established for IRAs by the |
Internal Revenue Code. |
(o-5) Select a default contribution rate for Program |
participants within the range of 3% to 6% of an enrollee's |
wages. |
(o-10) Establish annual, automatic increases to the |
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contribution rates based upon a schedule provided for in |
rules up to a maximum of 10% of an enrollee's wages. |
(p) Facilitate education and outreach to employers and |
employees. |
(q) Facilitate compliance by the Program with all |
applicable requirements for the Program under the Internal |
Revenue Code, including tax qualification requirements or |
any other applicable law and accounting requirements. |
(q-5) Verify employee eligibility for auto-enrollment |
in accordance with the Internal Revenue Code and |
applicable Federal and State laws. The verification shall |
include the rejection of any enrollee under 18 years of |
age. |
(r) Carry out the duties and obligations of the |
Program in an effective, efficient, and low-cost manner. |
(s) Exercise any and all other powers reasonably |
necessary for the effectuation of the purposes, |
objectives, and provisions of this Act pertaining to the |
Program. |
(t) Deposit into the Illinois Secure Choice |
Administrative Fund all grants, gifts, donations, fees, |
and earnings from investments from the Illinois Secure |
Choice Savings Program Fund that are used to recover |
administrative costs. All expenses of the Board shall be |
paid from the Illinois Secure Choice Administrative Fund.
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The Board may enter into agreements with other |
