Public Act 103-0043
HB3155 EnrolledLRB103 27572 SPS 53948 b HB3155 Enrolled LRB103 27572 SPS 53948 b
HB3155 Enrolled LRB103 27572 SPS 53948 b
AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Secure Choice Savings Program Act
is amended by changing Sections 5 and 30 as follows:
(820 ILCS 80/5)
Sec. 5. Definitions. Unless the context requires a
different meaning or as expressly provided in this Section,
all terms shall have the same meaning as when used in a
comparable context in the Internal Revenue Code. As used in
this Act:
"Board" means the Illinois Secure Choice Savings Board
established under this Act.
"Department" means the Department of Revenue.
"Director" means the Director of Revenue.
"Employee" means any individual who is employed by an
employer, and who has wages that are allocable to Illinois
during a calendar year under the provisions of Section
304(a)(2)(B) of the Illinois Income Tax Act.
"Employer" means a person or entity engaged in a business,
industry, profession, trade, or other enterprise in Illinois,
whether for profit or not for profit, that (i) has employed at
least 5 employees in the State during every quarter of the
HB3155 Enrolled LRB103 27572 SPS 53948 b
previous calendar year, (ii) has been in business at least 2
years, and (iii) is not offering or contributing to has not
offered a qualified retirement plan, including, but not
limited to, a plan qualified under Section 401(a), Section
401(k), Section 403(a), Section 403(b), Section 408(k),
Section 408(p), or Section 457(b) of the Internal Revenue Code
of 1986 in the preceding 2 years. "Employer" does not include
the federal government, the State, any county, any municipal
corporation, or any of the State's units or instrumentalities.
"Enrollee" means any employee who is enrolled in the
Program.
"Fund" means the Illinois Secure Choice Savings Program
Fund.
"Internal Revenue Code" means Internal Revenue Code of
1986, or any successor law, in effect for the calendar year.
"IRA" means a Roth or Traditional IRA (individual
retirement account) under Section 408 or 408A of the Internal
Revenue Code.
"Participating employer" means an employer or small
employer that facilitates a payroll deposit retirement savings
arrangement as provided for by this Act for its employees.
"Payroll deposit retirement savings arrangement" means an
arrangement by which a participating employer facilitates
payroll deduction contributions from enrollees to the Program.
"Program" means the Illinois Secure Choice Savings
Program.
"Small employer" means a person or entity engaged in a
business, industry, profession, trade, or other enterprise in
Illinois, whether for profit or not for profit, that (i)
employed less than 5 employees during any quarter of the
previous calendar year, or (ii) has been in business less than
2 years, or both items (i) and (ii), but that notifies the
Board that it is interested in being a participating employer.
"Wages" means any compensation within the meaning of
Section 219(f)(1) of the Internal Revenue Code that is
received by an enrollee from a participating employer during
the calendar year.
(Source: P.A. 101-353, eff. 8-9-19; 102-179, eff. 1-1-22.)
(820 ILCS 80/30)
Sec. 30. Duties of the Board. In addition to the other
duties and responsibilities stated in this Act, the Board
shall:
(a) Cause the Program to be designed, established and
operated in a manner that:
(1) accords with best practices for retirement
savings vehicles;
(2) maximizes participation, savings, and sound
investment practices;
(3) maximizes simplicity, including ease of
administration for participating employers and
enrollees;
(4) provides an efficient product to enrollees by
pooling investment funds;
(5) ensures the portability of benefits; and
(6) provides for the deaccumulation of enrollee
assets in a manner that maximizes financial security
in retirement.
(b) Appoint a trustee to the IRA Fund in compliance
with Section 408 of the Internal Revenue Code.
(c) Explore and establish investment options, subject
to Section 45 of this Act, that offer employees returns on
contributions and the conversion of individual retirement
savings account balances to secure retirement income
without incurring debt or liabilities to the State.
(d) Establish the process by which interest,
investment earnings, and investment losses are allocated
to individual program accounts on a pro rata basis and are
computed at the interest rate on the balance of an
individual's account.
(e) Make and enter into contracts necessary for the
administration of the Program and Fund, including, but not
limited to, retaining and contracting with investment
managers, private financial institutions, other financial
and service providers, consultants, actuaries, counsel,
auditors, third-party administrators, and other
professionals as necessary.
(e-5) Conduct a review of the performance of any
investment vendors every 4 years, including, but not
limited to, a review of returns, fees, and customer
service. A copy of reviews conducted under this subsection
(e-5) shall be posted to the Board's Internet website.
(f) In collaboration with the State Treasurer,
determine Determine the number and duties of staff members
needed to administer the Program and assemble such a
staff, including, as needed, employing staff, appointing a
Program administrator, and entering into contracts with
the State Treasurer to make employees of the State
Treasurer's Office available to administer the Program.
(g) Cause moneys in the Fund to be held and invested as
pooled investments described in Section 45 of this Act,
with a view to achieving cost savings through efficiencies
and economies of scale.
(h) Evaluate and establish the process by which an
enrollee is able to contribute a portion of his or her
wages to the Program for automatic deposit of those
contributions and the process by which the participating
employer provides a payroll deposit retirement savings
arrangement to forward those contributions and related
information to the Program, including, but not limited to,
contracting with financial service companies and
third-party administrators with the capability to receive
and process employee information and contributions for
payroll deposit retirement savings arrangements or similar
arrangements.
(i) Design and establish the process for enrollment
under Section 60 of this Act, including the process by
which an employee can opt not to participate in the
Program, select a contribution level, select an investment
option, and terminate participation in the Program.
(j) Evaluate and establish the process by which an
individual may voluntarily enroll in and make
contributions to the Program.
(k) Accept any grants, appropriations, or other moneys
from the State, any unit of federal, State, or local
government, or any other person, firm, partnership, or
corporation solely for deposit into the Fund, whether for
investment or administrative purposes.
(l) Evaluate the need for, and procure as needed,
insurance against any and all loss in connection with the
property, assets, or activities of the Program, and
indemnify as needed each member of the Board from personal
loss or liability resulting from a member's action or
inaction as a member of the Board.
(m) Make provisions for the payment of administrative
costs and expenses for the creation, management, and
operation of the Program, including the costs associated
with subsection (b) of Section 20 of this Act, subsections
(e), (f), (h), and (l) of this Section, subsection (b) of
Section 45 of this Act, subsection (a) of Section 80 of
this Act, and subsection (n) of Section 85 of this Act.
Subject to appropriation, the State may pay administrative
costs associated with the creation and management of the
Program until sufficient assets are available in the Fund
for that purpose. Thereafter, all administrative costs of
the Fund, including repayment of any start-up funds
provided by the State, shall be paid only out of moneys on
deposit therein. However, private funds or federal funding
received under subsection (k) of Section 30 of this Act in
order to implement the Program until the Fund is
self-sustaining shall not be repaid unless those funds
were offered contingent upon the promise of such
repayment. The Board shall keep investment fees total
annual expenses as low as possible, but in no event shall
they exceed 0.25% 0.75% of the total trust balance. The
Board may charge administrative fees, established by rule,
that shall be consistent with industry standards.
(n) Allocate administrative fees to individual
retirement accounts in the Program on a pro rata basis.
(o) Set minimum and maximum contribution levels in
accordance with limits established for IRAs by the
Internal Revenue Code.
(o-5) Select a default contribution rate for Program
participants within the range of 3% to 6% of an enrollee's
wages.
(o-10) Establish annual, automatic increases to the
contribution rates based upon a schedule provided for in
rules up to a maximum of 10% of an enrollee's wages.
(p) Facilitate education and outreach to employers and
employees.
(q) Facilitate compliance by the Program with all
applicable requirements for the Program under the Internal
Revenue Code, including tax qualification requirements or
any other applicable law and accounting requirements.
(q-5) Verify employee eligibility for auto-enrollment
in accordance with the Internal Revenue Code and
applicable Federal and State laws. The verification shall
include the rejection of any enrollee under 18 years of
age.
(r) Carry out the duties and obligations of the
Program in an effective, efficient, and low-cost manner.
(s) Exercise any and all other powers reasonably
necessary for the effectuation of the purposes,
objectives, and provisions of this Act pertaining to the
Program.
(t) Deposit into the Illinois Secure Choice
Administrative Fund all grants, gifts, donations, fees,
and earnings from investments from the Illinois Secure
Choice Savings Program Fund that are used to recover
administrative costs. All expenses of the Board shall be
paid from the Illinois Secure Choice Administrative Fund.
The Board may enter into agreements with other
governmental entities, including other states or their
agencies and instrumentalities, to enable residents of other
states to participate in the Program.
(Source: P.A. 101-353, eff. 8-9-19; 102-179, eff. 1-1-22.)
Section 99. Effective date. This Act takes effect upon
becoming law.