Illinois Secure Choice is a state-facilitated retirement savings program designed to help private-sector employees in Illinois who lack access to an employer-sponsored retirement plan. The program automatically enrolls eligible employees in a Roth IRA with a default 5% payroll contribution, though employees can change their contribution amount or opt out. Employers in Illinois with at least five employees, in business for two or more years, and that do not offer a qualified retirement plan must either begin offering such a plan or automatically enroll employees in Secure Choice. Employers are responsible for registering their business and facilitating payroll contributions but do not make contributions or bear administration costs. The program aims to provide a straightforward, low-cost retirement savings option accessible to millions of Illinois workers, with accounts owned by individuals and portable from job to job. Businesses not wishing to participate in Secure Choice may choose to offer a private qualified retirement plan instead. Noncompliance with program requirements can result in penalties. As of mid-2025, Secure Choice has over 157,000 participants and employers across all 102 counties in Illinois participating, with over $250 million saved in the program.

Key Features of Illinois Secure Choice

• Automatic employee enrollment unless opted out.
• Default contribution set at 5% of gross pay with automatic escalation to 10%.
• Roth IRA accounts funded by after-tax payroll deductions.
• Employer responsibilities include registration and payroll facilitation only; no financial contributions.
• Portability of accounts from job to job.
• Penalties for employers who fail to comply, enforced by the Illinois Department of Revenue.
• Available to employers with 5+ employees and no existing qualified retirement plan.

Employer Requirements

• Must have been in operation for at least two years.
• Must have employed 5 or more workers in every quarter of the preceding year.
• Must register for Secure Choice or offer another qualified retirement savings plan.
• Avoid penalties by complying with the enrollment deadlines and program rules.

This makes Illinois Secure Choice a significant tool in addressing retirement savings gaps among workers in Illinois, particularly for small and mid-sized employers without existing retirement plans.