Public Act 103-0043
 
HB3155 EnrolledLRB103 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 
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. 
  


Effective Date:  6/9/2023