Illinois Secure Choice
State of Illinois IRA program
Year enacted |
2015; amended 2016, 2017, 2019, and 2021 |
Status |
Completed its initial registration program in 2018–2019. Required registration dates:
Two new registration periods were added in 2021 with the following required registration dates:
|
Employers affected |
Mandatory for employers with five or more employees that don’t provide their own qualified plan; there’s a two-year deferral for new businesses. Self-employed, contract, and seasonal workers can enroll in the program as of March 2020. |
Type of account |
Roth IRA (default) and traditional IRA (optional) |
Automatic enrollment |
Yes |
Auto-escalation |
Yes (1% increments, up to 10%); eligible employees may elect to contribute more than 10%, provided they don't exceed the annual IRS limit for IRAs. |
Default contribution rate |
5% |
Employer contributions |
Not permitted |
Investment options |
Target-date funds (TDFs), a capital preservation fund, a conservative fund, and a growth fund
Default—Contributions are invested in a money market fund for 90 days, then they're moved to the age-appropriate TDF, if no other investment option is selected. |
Fees |
None for employers. Employee fees are to be capped at 0.75% of the total trust balance. There's also a $5 annual paper statement fee that can be waived by switching to electronic delivery. |
Website |
Sources: Most of the information is from “State-Facilitated Retirement Savings Programs: A Snapshot of Plan Design Features,” Georgetown University Center for Retirement Initiatives, 10/31/21, and the program's website. It is subject to change without notice. Please contact the state to learn more.
Learn more about the opportunity with state-facilitated retirement plans
John Hancock Retirement Plan Services LLC offers administrative or recordkeeping services to sponsors and administrators of retirement plans. John Hancock Trust Company LLC provides trust and custodial services to such plans. Group annuity contracts and recordkeeping agreements are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, New York. Product features and availability may differ by state. Securities offered through John Hancock Distributors LLC. Member FINRA, SIPC.
John Hancock Investment Management Distributors LLC is the principal underwriter and wholesale distribution broker-dealer for the John Hancock mutual funds. Member FINRA, SIPC.
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