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SB 1441

SECURE CHOICE PROGRAM-IRAS

104th Regular Session Introduced by Sara Feigenholtz and 4 co-sponsors

Illinois expands Secure Choice into portable IRA accounts (Roth/Traditional) with auto-enrollment after 120 days, 3–6% default, auto-escalation to 10%, and a 0.25% fee cap.

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Bill Summary · SB 1441

SB 1441 — Secure Choice Program — IRAs (Public Act 104-0100)

Status: Enacted as Public Act 104‑0100; effective August 1, 2025.
Introduced: February 19, 2025. Companion: HB 1122.

Purpose

Amends the Illinois Secure Choice Savings Program Act to clarify the program’s IRA structure, expand program features (portability, Roth/Traditional options), define Board duties and vendor oversight, set participant contribution defaults and auto‑escalation, and strengthen employer enrollment/remittance obligations and related administrative provisions.

Key provisions and changes

  • Accounts defined as IRAs: Program accounts are explicitly IRAs owned by each enrollee. The Program may offer both Roth and Traditional IRA accounts for participants.
  • Portability and multi‑employer contributions: Participants may consolidate contributions from multiple employers into a single Secure Choice account, contributed either simultaneously or at different times over the enrollee’s lifetime.
  • Board duties and governance:
    • Board must design and operate the Program consistent with retirement plan best practices, maximize participation, ensure portability and deaccumulation options, and pool investments to achieve economies of scale.
    • Appoint an IRA trustee in compliance with IRC §408.
    • Explore agreements with other governmental entities (including other states/agencies) for shared resources and economies of scale (as described in the bill synopsis).
    • Conduct performance reviews of investment vendors every 4 years (returns, fees, customer service) and post reviews on the Board website.
    • Keep investment fees low; investment fees shall not exceed 0.25% (25 basis points) of the total trust balance. Administrative fees may be charged consistent with industry standards and allocated pro rata to accounts.
  • Contribution rules and defaults:
    • Board sets minimum/maximum levels consistent with IRA limits under the Internal Revenue Code.
    • Default contribution rate must be between 3% and 6% of wages.
    • Board may establish automatic annual increases (auto‑escalation) up to a 10% maximum contribution rate.
    • Employees may choose contribution amount (percentage or dollar amount) up to IRA deductible limits (IRC §219(b)(1)(A)); may change contributions per Board rules.
  • Enrollment and employer responsibilities (Section 60 insertion):
    • Employers must implement payroll deduction arrangements and automatically enroll employees who have been employed at least 120 days, unless the employee opts out.
    • After initial enrollment, new employees must be enrolled no later than 120 days after hire.
    • Employers who fail, without reasonable cause, to enroll employees and remit contributions are subject to penalties.
    • Employers may instead adopt a qualified retirement plan (e.g., 401(k), SEP, SIMPLE) and opt out of facilitating Secure Choice participation.
    • Board to set and publicize the implementation timeline and provide advance notice to employers; the text includes enrollment‑deadline benchmarks (employers with fewer than 25 and more than 15 employees: no sooner than Sept 1, 2022; employers with 5–15 employees: no sooner than Sept 1, 2023), and authorizes open enrollment periods for employees who previously opted out.
  • Participant protections and operations:
    • Employees under age 18 are ineligible for auto‑enrollment (verification required).
    • Investment earnings/losses and interest are allocated pro rata to individual accounts.
    • Board to maintain a public website and may host (if privately funded) a directory of private retirement plan providers employers can use instead of the Program.

Who is affected

  • Private‑sector employers in Illinois (obligations to enroll eligible employees, remit contributions, or offer qualified plans).
  • Private‑sector employees without employer retirement plans — gain access to a portable IRA with automatic payroll contributions and default features.
  • The Secure Choice Board and State Treasurer (administration, staffing, vendor contracting).
  • Financial service vendors and private retirement plan providers (vendor oversight, potential inclusion on Board web directory).

Fiscal/administrative notes

  • Initial administrative costs may be funded by appropriations; thereafter administrative fees are to be paid from Fund assets.
  • Investment fee cap: 0.25% of total trust balance.
  • The Act requires vendor reviews and public disclosure of those reviews.

Procedural timeline / status

  • Passed both legislative chambers, enrolled and transmitted to Governor; recorded actions included a veto on April 18, 2025, but the final status shows approval and enactment as Public Act 104‑0100, effective August 1, 2025.

For full statutory text and exact language, consult Public Act 104‑0100 (SB 1441 enrolled).

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

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