SPRINGFIELD, Ill., April 9, 2014 /PRNewswire-USNewswire/ -- Today, the Illinois Senate passed Senate Bill 2758 – the Illinois Secure Choice Savings Program – and, in doing so, took a major step toward helping to ensure that Illinois workers can have a more secure financial future. Sponsored by Sen. Daniel Biss, Senate Bill 2758 provides a simple retirement savings option for over 2.5 million workers in Illinois who do not currently have access to an employer-based retirement savings plan. The bill will now move to the House where Representative Barbara Flynn Currie will be the Chief Sponsor.
"AARP thanks Senator Biss for his leadership on this issue and applauds those in the Senate who voted 'yes' on Senate Bill 2758," said Bob Gallo, AARP Illinois State Director. "The Illinois Secure Choice Savings Program is good for employees, employers and the future economic viability of our state."
Senate Bill 2758 would provide an Individual Retirement Account (IRA) plan for businesses that have 25 or more employees that have been in business more than two years. The program enables businesses to facilitate employee savings without having to sponsor a plan, comply with ERISA requirements or make matching contributions. Workers would be automatically opted-in to an account, but could opt-out at any time, and the accounts would be portable.
"The Illinois Secure Choice Savings Program will enable smaller businesses in Illinois who are not currently able to offer a retirement savings option the opportunity to compete with larger employers," added Gallo. "The program is a win-win for employers and employees and AARP urges the House to follow the example set by the Senate and pass this legislation."
Nationally, 45% of working-age households have no retirement savings and the average Social Security benefit in Illinois is only $1,281 per month. Research has shown that people are more likely to save for retirement if they can do so through work. Over 71% of workers participate in a retirement savings plan when it is offered by their employer – and less than 5% save if their employer does not offer a plan.
The Illinois Secure Choice Savings Program is supported by AARP Illinois, Illinois Asset Building Group, Sargent Shriver National Center on Poverty Law, Woodstock Institute, Heartland Alliance, SEIU Illinois/Indiana and over 45 other businesses, associations and advocacy groups.
SOURCE AARP Illinois