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IllinoisSB1441104th General Assembly (2025–2026)SenateWALLET

SECURE CHOICE PROGRAM-IRAS

Sponsored By: Robert Peters (Democratic)

Became Law

assignmentsstate governmentpersonnel & pensions

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

Automatic payroll IRA for workers

The law creates a state payroll-deduction IRA for Illinois workers without a workplace plan. If you have worked 120 days and do not opt out, your employer enrolls you. The Board sets a default rate between 3% and 6% of pay; you can choose a percent or dollar amount within federal IRA limits. The Board may raise your rate each year up to 10% of wages, and you can change your rate or stop at any time. You can pick investments; if you do not, you go to the Board’s default (or a life‑cycle fund if no default is set). Your account is your own IRA (Traditional and/or Roth) and follows you across jobs in one account. Workers under 18 are not auto‑enrolled.

Employer rules and penalties for Secure Choice

Employers must set up payroll deductions so workers can use the state IRA when enrollment opens. Smaller employers start later: 16–24 employees no sooner than Sept 1, 2022; 5–15 employees no sooner than Sept 1, 2023. Employers that offer a qualified plan (like a 401(k), SEP, or SIMPLE) do not use the state program. Small employers may offer payroll saving by choice and may use auto‑enrollment only if it does not create ERISA liability. Penalties for not enrolling or remitting are $250 per employee for the first calendar year and $500 per employee for each later year. The Department issues a proposed assessment that becomes final after 120 days unless you protest or fully comply; you can request a hearing or refund, and unpaid amounts can become liens. The Department can require program info on certain tax returns; missing info can make a return unprocessable.

Low‑cost, transparent investing for savers

Investment fees are capped at 0.25% of the program’s total trust balance. The Board can also charge administrative fees, which are spread across accounts under its rules. The Board pools money to lower costs, picks investment options, appoints a trustee, and hires vendors. It reviews vendor returns, fees, and service at least every four years and posts the results online. The State may cover startup costs until the program can pay its own way. Penalties and certain fees go to a state fund that pays enforcement costs when appropriated.

Sponsors & Cosponsors

Sponsor

  • Robert Peters

    Democratic • Senate

Cosponsors

  • Gregg Johnson

    Democratic • House

  • Michael W. Halpin

    Democratic • Senate

  • Robert F. Martwick

    Democratic • Senate

  • Sara Feigenholtz

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 149 • No: 47

House vote • 5/21/2025

Third Reading - Short Debate - Passed

Yes: 74 • No: 37

House vote • 4/24/2025

Do Pass / Short Debate Personnel & Pensions Committee;

Yes: 8 • No: 4

Senate vote • 4/3/2025

Third Reading - Passed;

Yes: 48 • No: 6

Senate vote • 3/19/2025

Senate Floor Amendment No. 1 Recommend Do Adopt State Government;

Yes: 9 • No: 0

Senate vote • 2/27/2025

Do Pass State Government;

Yes: 10 • No: 0

Actions Timeline

  1. Public Act . . . . . . . . . 104-0100

    8/1/2025Senate

  2. Effective Date August 1, 2025

    8/1/2025Senate

  3. Governor Approved

    8/1/2025Senate

  4. Sent to the Governor

    6/18/2025Senate

  5. Passed Both Houses

    5/21/2025Senate

  6. Third Reading - Short Debate - Passed 074-037-000

    5/21/2025House

  7. Placed on Calendar Order of 3rd Reading - Short Debate

    5/16/2025House

  8. Second Reading - Short Debate

    5/16/2025House

  9. Placed on Calendar 2nd Reading - Short Debate

    4/24/2025House

  10. Do Pass / Short Debate Personnel & Pensions Committee; 008-004-000

    4/24/2025House

  11. Assigned to Personnel & Pensions Committee

    4/17/2025House

  12. Referred to Rules Committee

    4/7/2025House

  13. First Reading

    4/7/2025House

  14. Chief House Sponsor Rep. Gregg Johnson

    4/4/2025House

  15. Arrived in House

    4/4/2025House

  16. Third Reading - Passed; 048-006-000

    4/3/2025Senate

  17. Placed on Calendar Order of 3rd Reading April 2, 2025

    4/1/2025Senate

  18. Senate Floor Amendment No. 1 Adopted; Peters

    4/1/2025Senate

  19. Second Reading

    4/1/2025Senate

  20. Senate Floor Amendment No. 1 Recommend Do Adopt State Government; 009-000-000

    3/19/2025Senate

  21. Added as Co-Sponsor Sen. Sara Feigenholtz

    3/19/2025Senate

  22. Senate Floor Amendment No. 1 Assignments Refers to State Government

    3/19/2025Senate

  23. Senate Floor Amendment No. 1 Referred to Assignments

    3/18/2025Senate

  24. Senate Floor Amendment No. 1 Filed with Secretary by Sen. Robert Peters

    3/18/2025Senate

  25. Added as Chief Co-Sponsor Sen. Robert F. Martwick

    2/27/2025Senate

Bill Text

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