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1 AN ACT concerning employment.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Illinois Secure Choice Savings Program Act 
5is amended by changing Sections 5 and 30 as follows:

6 (820 ILCS 80/5)
7 Sec. 5. Definitions. Unless the context requires a 
8different meaning or as expressly provided in this Section, 
9all terms shall have the same meaning as when used in a 
10comparable context in the Internal Revenue Code. As used in 
11this Act:
12 "Board" means the Illinois Secure Choice Savings Board 
13established under this Act.
14 "Department" means the Department of Revenue.
15 "Director" means the Director of Revenue.
16 "Employee" means any individual who is employed by an 
17employer, and who has wages that are allocable to Illinois 
18during a calendar year under the provisions of Section 
19304(a)(2)(B) of the Illinois Income Tax Act.
20 "Employer" means a person or entity engaged in a business, 
21industry, profession, trade, or other enterprise in Illinois, 
22whether for profit or not for profit, that (i) has employed at 
23least 5 employees in the State during every quarter of the 
 
 
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1previous calendar year, (ii) has been in business at least 2 
2years, and (iii) is not offering or contributing to has not 
3offered a qualified retirement plan, including, but not 
4limited to, a plan qualified under Section 401(a), Section 
5401(k), Section 403(a), Section 403(b), Section 408(k), 
6Section 408(p), or Section 457(b) of the Internal Revenue Code 
7of 1986 in the preceding 2 years. "Employer" does not include 
8the federal government, the State, any county, any municipal 
9corporation, or any of the State's units or instrumentalities. 
10 "Enrollee" means any employee who is enrolled in the 
11Program.

12 "Fund" means the Illinois Secure Choice Savings Program 
13Fund.

14 "Internal Revenue Code" means Internal Revenue Code of 
151986, or any successor law, in effect for the calendar year.

16 "IRA" means a Roth or Traditional IRA (individual 
17retirement account) under Section 408 or 408A of the Internal 
18Revenue Code.

19 "Participating employer" means an employer or small 
20employer that facilitates a payroll deposit retirement savings 
21arrangement as provided for by this Act for its employees.
22 "Payroll deposit retirement savings arrangement" means an 
23arrangement by which a participating employer facilitates 
24payroll deduction contributions from enrollees to the Program.
25 "Program" means the Illinois Secure Choice Savings 
26Program.

 
 
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1 "Small employer" means a person or entity engaged in a 
2business, industry, profession, trade, or other enterprise in 
3Illinois, whether for profit or not for profit, that (i) 
4employed less than 5 employees during any quarter of the 
5previous calendar year, or (ii) has been in business less than 
62 years, or both items (i) and (ii), but that notifies the 
7Board that it is interested in being a participating employer.
8 "Wages" means any compensation within the meaning of 
9Section 219(f)(1) of the Internal Revenue Code that is 
10received by an enrollee from a participating employer during 
11the calendar year.


12(Source: P.A. 101-353, eff. 8-9-19; 102-179, eff. 1-1-22.)

13 (820 ILCS 80/30)
14 Sec. 30. Duties of the Board. In addition to the other 
15duties and responsibilities stated in this Act, the Board 
16shall:
17  (a) Cause the Program to be designed, established and 
18 operated in a manner that:
19   (1) accords with best practices for retirement 
20 savings vehicles;
21   (2) maximizes participation, savings, and sound 
22 investment practices;
23   (3) maximizes simplicity, including ease of 
24 administration for participating employers and 
25 enrollees;
 
 
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1   (4) provides an efficient product to enrollees by 
2 pooling investment funds;
3   (5) ensures the portability of benefits; and
4   (6) provides for the deaccumulation of enrollee 
5 assets in a manner that maximizes financial security 
6 in retirement.
7  (b) Appoint a trustee to the IRA Fund in compliance 
8 with Section 408 of the Internal Revenue Code.
9  (c) Explore and establish investment options, subject 
10 to Section 45 of this Act, that offer employees returns on 
11 contributions and the conversion of individual retirement 
12 savings account balances to secure retirement income 
13 without incurring debt or liabilities to the State.
14  (d) Establish the process by which interest, 
15 investment earnings, and investment losses are allocated 
16 to individual program accounts on a pro rata basis and are 
17 computed at the interest rate on the balance of an 
18 individual's account.
19  (e) Make and enter into contracts necessary for the 
20 administration of the Program and Fund, including, but not 
21 limited to, retaining and contracting with investment 
22 managers, private financial institutions, other financial 
23 and service providers, consultants, actuaries, counsel, 
24 auditors, third-party administrators, and other 
25 professionals as necessary.
26  (e-5) Conduct a review of the performance of any 
 
 
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1 investment vendors every 4 years, including, but not 
2 limited to, a review of returns, fees, and customer 
3 service. A copy of reviews conducted under this subsection 
4 (e-5) shall be posted to the Board's Internet website.
5  (f) In collaboration with the State Treasurer, 
6 determine Determine the number and duties of staff members 
7 needed to administer the Program and assemble such a 
8 staff, including, as needed, employing staff, appointing a 
9 Program administrator, and entering into contracts with 
10 the State Treasurer to make employees of the State 
11 Treasurer's Office available to administer the Program.
12  (g) Cause moneys in the Fund to be held and invested as 
13 pooled investments described in Section 45 of this Act, 
14 with a view to achieving cost savings through efficiencies 
15 and economies of scale.
16  (h) Evaluate and establish the process by which an 
17 enrollee is able to contribute a portion of his or her 
18 wages to the Program for automatic deposit of those 
19 contributions and the process by which the participating 
20 employer provides a payroll deposit retirement savings 
21 arrangement to forward those contributions and related 
22 information to the Program, including, but not limited to, 
23 contracting with financial service companies and 
24 third-party administrators with the capability to receive 
25 and process employee information and contributions for 
26 payroll deposit retirement savings arrangements or similar 
 
 
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1 arrangements.
2  (i) Design and establish the process for enrollment 
3 under Section 60 of this Act, including the process by 
4 which an employee can opt not to participate in the 
5 Program, select a contribution level, select an investment 
6 option, and terminate participation in the Program.
7  (j) Evaluate and establish the process by which an 
8 individual may voluntarily enroll in and make 
9 contributions to the Program.
10  (k) Accept any grants, appropriations, or other moneys 
11 from the State, any unit of federal, State, or local 
12 government, or any other person, firm, partnership, or 
13 corporation solely for deposit into the Fund, whether for 
14 investment or administrative purposes.

15  (l) Evaluate the need for, and procure as needed, 
16 insurance against any and all loss in connection with the 
17 property, assets, or activities of the Program, and 
18 indemnify as needed each member of the Board from personal 
19 loss or liability resulting from a member's action or 
20 inaction as a member of the Board.
21  (m) Make provisions for the payment of administrative 
22 costs and expenses for the creation, management, and 
23 operation of the Program, including the costs associated 
24 with subsection (b) of Section 20 of this Act, subsections 
25 (e), (f), (h), and (l) of this Section, subsection (b) of 
26 Section 45 of this Act, subsection (a) of Section 80 of 
 
 
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1 this Act, and subsection (n) of Section 85 of this Act. 
2 Subject to appropriation, the State may pay administrative 
3 costs associated with the creation and management of the 
4 Program until sufficient assets are available in the Fund 
5 for that purpose. Thereafter, all administrative costs of 
6 the Fund, including repayment of any start-up funds 
7 provided by the State, shall be paid only out of moneys on 
8 deposit therein. However, private funds or federal funding 
9 received under subsection (k) of Section 30 of this Act in 
10 order to implement the Program until the Fund is 
11 self-sustaining shall not be repaid unless those funds 
12 were offered contingent upon the promise of such 
13 repayment. The Board shall keep investment fees total 
14 annual expenses as low as possible, but in no event shall 
15 they exceed 0.25% 0.75% of the total trust balance. The 
16 Board may charge administrative fees, established by rule, 
17 that shall be consistent with industry standards. 
18  (n) Allocate administrative fees to individual 
19 retirement accounts in the Program on a pro rata basis.
20  (o) Set minimum and maximum contribution levels in 
21 accordance with limits established for IRAs by the 
22 Internal Revenue Code.
23  (o-5) Select a default contribution rate for Program 
24 participants within the range of 3% to 6% of an enrollee's 
25 wages. 
26  (o-10) Establish annual, automatic increases to the 
 
 
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1 contribution rates based upon a schedule provided for in 
2 rules up to a maximum of 10% of an enrollee's wages. 
3  (p) Facilitate education and outreach to employers and 
4 employees.
5  (q) Facilitate compliance by the Program with all 
6 applicable requirements for the Program under the Internal 
7 Revenue Code, including tax qualification requirements or 
8 any other applicable law and accounting requirements.
9  (q-5) Verify employee eligibility for auto-enrollment 
10 in accordance with the Internal Revenue Code and 
11 applicable Federal and State laws. The verification shall 
12 include the rejection of any enrollee under 18 years of 
13 age. 
14  (r) Carry out the duties and obligations of the 
15 Program in an effective, efficient, and low-cost manner.
16  (s) Exercise any and all other powers reasonably 
17 necessary for the effectuation of the purposes, 
18 objectives, and provisions of this Act pertaining to the 
19 Program.
20  (t) Deposit into the Illinois Secure Choice 
21 Administrative Fund all grants, gifts, donations, fees, 
22 and earnings from investments from the Illinois Secure 
23 Choice Savings Program Fund that are used to recover 
24 administrative costs. All expenses of the Board shall be 
25 paid from the Illinois Secure Choice Administrative Fund.

26 The Board may enter into agreements with other 
 
 
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1governmental entities, including other states or their 
2agencies and instrumentalities, to enable residents of other 
3states to participate in the Program. 
4(Source: P.A. 101-353, eff. 8-9-19; 102-179, eff. 1-1-22.)


5 Section 99. Effective date. This Act takes effect upon 
6becoming law.