WeVote
Log In

Bill

Bill

HB 1435

SECURE CHOICE PROGRAM-IRAS

104th Regular Session Introduced by Marti Deuter and 3 co-sponsors

Illinois creates state-administered retirement IRAs with automatic enrollment for private workers lacking employer plans, enabling payroll-deduction savings with opt-out provisions.

Added Co-Sponsor Rep. Stephanie A. Kifowit
0
WeVote Research Nonpartisan
Bill Summary · HB 1435

Legislative bill overview

HB 1435 establishes Illinois' "Secure Choice Program," which creates state-facilitated individual retirement accounts (IRAs) for private sector employees whose employers don't offer retirement plans. Employees can automatically enroll and contribute to these accounts through payroll deductions, with the option to opt out. The program aims to increase retirement savings access for workers in smaller businesses and gig economy jobs.

Why is this important

Roughly 40% of American workers lack access to employer-sponsored retirement plans, making them less likely to save for retirement and increasing their dependence on Social Security or public assistance. This bill could help Illinois workers build retirement security and reduce long-term state welfare costs. It represents a state-level response to a significant gap in the private retirement system.

Potential points of contention

  • Employer burden: Small businesses may object to administrative requirements and costs of processing automatic payroll deductions, even if they're not directly funding accounts
  • Default enrollment concerns: Critics worry automatic enrollment could feel coercive to workers with tight budgets, raising fairness questions about who benefits most
  • State liability and oversight: Questions remain about who bears investment risk, how the state regulates fund performance, and what happens if accounts underperform or face fraud

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.