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Illinois Secure Choice Update


Illinois Secure Choice was closing in on 100,000 accounts at midyear, according to data it published as of June 30. At that point, Secure Choice had 99,943 “payroll contributing accounts,” of which 90,403 were funded. The gap represents the startup time between enrollment and the first contribution.
 
 

Illinois Secure Choice Update

Illinois Secure Choice was closing in on 100,000 accounts at midyear, according to data it published as of June 30. At that point, Secure Choice had 99,943 “payroll contributing accounts,” of which 90,403 were funded. The gap represents the startup time between enrollment and the first contribution.

Program assets reach $67 million at midyear. The average monthly contribution rate was $114.90, and the average account balance was $741.93. About one-third of eligible workers at enrolled employers had opted out of contributing.

As of midyear, 6,060 employers had registered for the program, 4,033 had uploaded employee data, and 2,837 had begun submitting payroll deductions.

Treasurer Michael Frerichs, speaking about the state's current financial position in a recent television interview, pledged to continue promoting the benefits of Secure Choice. He said the program was one of his top priorities during the last session, promoting his office retirement program and college savings program.

“The Secure Choice Retirement Savings Program allows up to 900,000 people to save money for retirement. Allows more Illinois to retire with dignity and enjoy their golden age. “I will do it,” said Frerichs.

At present, Secure Choice only applies employers with 25 or more workers that do not offer workplace benefits, versus a current threshold of five workers in Oregon and California, which have also created auto-IRA programs. In an interview in February, Frerichs said that now the state has experience with the program, “we want to lower that threshold to allow all our small businesses and workers to have access.” (Oregon has targeted requiring companies with four or fewer employees to enroll beginning in 2022.)

Frerichs pointed out that Illinois was the first state to pass legislation to create an auto-IRA program. As a result, “it's not surprising that our threshold would be higher than other states. Now that we know how well the program works, it just makes sense to give access to everyone.”

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