Private Retirement Savings Program Provides An Edge for Small Business

private retirement savings program, Naperville small business law attorney, retirement, Secure Choice Savings Program, Senate Bill 2758, retirement funds, private sector workers The Illinois Secure Choice Savings Program, also known as Senate Bill 2758, is a proposed amendment to the Illinois State Finance Act that, if passed, could provide millions of Illinoisans with a new way to hold secured retirement savings on their own terms. This retirement savings program has garnered a great degree of positive support from small businesses throughout the state. These supporters believe that Secure Choice will provide small businesses with a competitive advantage in the form of a value-adding retirement savings service that is not based on the state government retirement account process. Small businesses and employees who decide to participate in Secure Choice will make contributions through automatic enrollment payroll deduction IRAs. The intent for the creation of Secure Choice is to promote the enhanced savings of retirement funds for private sector workers through a portable, low-cost, and convenient savings platform. Both employee and employer money contributions to retirement savings will be contained in the retirement accounts.

The Illinois Secure Choice Savings Program

The Secure Choice program will provide employees with access to individual retirement accounts (IRAs) into which both employees and employers can place funds through payroll deductions. The benefits of Secure Choice is its ability to empower employees by allowing them to determine how much, if any, of their money they will save for retirement, as well as the decision to determine how much of their savings will be invested and in what form these investments will take. Secure Choice will allow small businesses to have the flexibility not provided by state-run retirement accounts, when it comes to determining the amounts that they will submit into employee retirement accounts. Furthermore, individual employees will not be required to be dependent on state-based retirement savings account programs.

It is the lack of risk that has allowed the Secure Choice to garner support from both employers and employees. For example, excluding participant start-up costs and funding, Secure Choice is self-sustained by private funds of the participants, which results in minimal costs to the state of Illinois. Ultimately, Secure Choice is not a public pension, and, as a result, will not be included in Illinois’ total pension liability. This is significant given all of the employee pension underfunding issues plaguing the state.

Secure Choice has already made it through the Illinois State Senate and is now awaiting approval by Governor Pat Quinn. If you have questions about Secure Choice or any other business law-related topic, contact a Naperville small business law attorney at the Gierach Law Firm today. We are prepared to help you understand all options available to you, and assist you in any way that we can.