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Public Act 103-0681 Public Act 0681 103RD GENERAL ASSEMBLY | Public Act 103-0681 | HB4719 Enrolled | LRB103 36560 SPS 66667 b |
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| 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 60 and 85 as follows: | (820 ILCS 80/60) | Sec. 60. Program implementation and enrollment. Except as | otherwise provided in Section 93 of this Act, the Program | shall be implemented, and enrollment of employees shall begin | in 2018. The Board shall establish an implementation timeline | under which employers shall enroll their employees in the | Program. The timeline shall include the date by which an | employer must begin enrollment of its employees in the Program | and the date by which enrollment must be complete. The Board | shall adopt the implementation timeline at a public meeting of | the Board and shall publicize the implementation timeline. The | Board shall provide advance notice to employers of their | enrollment date and the amount of time to complete enrollment. | The enrollment deadline for employers with fewer than 25 | employees and more than 15 employees shall be no sooner than | September 1, 2022. The enrollment deadline for employers with | at least 5 employees but not more than 15 employees shall be no | sooner than September 1, 2023. The provisions of this Section |
| shall be in force after the Board opens the Program for | enrollment. | (a) Each employer shall establish a payroll deposit | retirement savings arrangement to allow each employee to | participate in the Program within the timeline set by the | Board after the Program opens for enrollment. | (b) Employers shall automatically enroll in the Program | each of their employees who has not opted out of participation | in the Program in the manner using the form described in | subsection (c) of Section 55 of this Act and shall provide | payroll deduction retirement savings arrangements for such | employees and deposit, on behalf of such employees, these | funds into the Program. Small employers may, but are not | required to, provide payroll deduction retirement savings | arrangements for each employee who elects to participate in | the Program. Utilization of automatic enrollment by small | employers may be allowed only if it does not create employer | liability under the federal Employee Retirement Income | Security Act. | (c) Enrollees shall have the ability to select a | contribution level into the Fund. This level may be expressed | as a percentage of wages or as a dollar amount up to the | deductible amount for the enrollee's taxable year under | Section 219(b)(1)(A) of the Internal Revenue Code. Enrollees | may change their contribution level at any time, subject to | rules promulgated by the Board. If an enrollee fails to select |
| a contribution level using the form described in subsection | (c) of Section 55 of this Act, then he or she shall contribute | the default contribution rate of his or her wages to the | Program, provided that such contributions shall not cause the | enrollee's total contributions to IRAs for the year to exceed | the deductible amount for the enrollee's taxable year under | Section 219(b)(1)(A) of the Internal Revenue Code. | (d) Enrollees may select an investment option from the | permitted investment options listed in Section 45 of this Act. | Enrollees may change their investment option at any time, | subject to rules promulgated by the Board. In the event that an | enrollee fails to select an investment option, that enrollee | shall be placed in the investment option selected by the Board | as the default under subsection (c) of Section 45 of this Act. | If the Board has not selected a default investment option | under subsection (c) of Section 45 of this Act, then an | enrollee who fails to select an investment option shall be | placed in the life-cycle fund investment option. | (e) Following initial implementation of the Program | pursuant to this Section, at least once every year, | participating employers may shall designate an open enrollment | period during which employees who previously opted out of the | Program may enroll in the Program. | (f) (Blank). An employee who opts out of the Program who | subsequently wants to participate through the participating | employer's payroll deposit retirement savings arrangement may |
| only enroll during the participating employer's designated | open enrollment period or if permitted by the participating | employer at an earlier time. | (g) Employers shall retain the option at all times to set | up a qualified retirement plan, including, but not limited to, | any type of employer-sponsored retirement plan, such as a | defined benefit plan or a 401(k), a Simplified Employee | Pension (SEP) plan, or a Savings Incentive Match Plan for | Employees (SIMPLE) plan, or to offer an automatic enrollment | payroll deduction IRA, instead of facilitating their | employees' having a payroll deposit retirement savings | arrangement to allow employee participation in the Program. | (h) An employee may terminate his or her participation in | the Program at any time in a manner prescribed by the Board. | (i) The Board shall establish and maintain an Internet | website designed to assist employers in identifying private | sector providers of retirement arrangements that can be set up | by the employer rather than allowing employee participation in | the Program under this Act; however, the Board shall only | establish and maintain an Internet website under this | subsection if there is sufficient interest in such an Internet | website by private sector providers and if the private sector | providers furnish the funding necessary to establish and | maintain the Internet website. The Board must provide public | notice of the availability of and the process for inclusion on | the Internet website before it becomes publicly available. |
| This Internet website must be available to the public before | the Board opens the Program for enrollment, and the Internet | website address must be included on any Internet website | posting or other materials regarding the Program offered to | the public by the Board. | (Source: P.A. 102-179, eff. 1-1-22 .) | (820 ILCS 80/85) | Sec. 85. Penalties. | (a) An employer who fails without reasonable cause to | enroll an employee in the Program within the time prescribed | under Section 60 of this Act shall be subject to a penalty | equal to: | (1) $250 per employee for the first calendar year the | employer is noncompliant; or | (2) $500 per employee for each subsequent calendar | year the employer is noncompliant; noncompliance does not | need to be consecutive to qualify for the $500 penalty. | The Department shall determine total employee count using | the annual average from employer-reported quarterly data. | (b) After determining that an employer is subject to a | penalty under this Section for a calendar year, the Department | shall issue a notice of proposed assessment to such employer, | stating the number of employees for which the penalty is | proposed under item (1) of subsection (a) of this Section or | the number of employees for which the penalty is proposed |
| under item (2) of subsection (a) of this Section for such | calendar year, and the total amount of penalties proposed. | Upon the expiration of 120 days after the date on which a | notice of proposed assessment was issued, the penalties | specified therein shall be deemed assessed, unless the | employer had filed a protest with the Department under | subsection (c) of this Section or come into full compliance | with the Program as required under Section 60 of this Act. | If, within 120 days after the date on which it was issued, | a protest of a notice of proposed assessment is filed under | subsection (c) of this Section, the penalties specified | therein shall be deemed assessed upon the date when the | decision of the Department with respect to the protest becomes | final. | (c) A written protest against the proposed assessment | shall be filed with the Department in such form as the | Department may by rule prescribe, setting forth the grounds on | which such protest is based. If such a protest is filed within | 120 days after the date the notice of proposed assessment is | issued, the Department shall reconsider the proposed | assessment and shall grant the employer a hearing. As soon as | practicable after such reconsideration and hearing, the | Department shall issue a notice of decision to the employer, | setting forth the Department's findings of fact and the basis | of decision. The decision of the Department shall become | final: |
| (1) if no action for review of the decision is | commenced under the Administrative Review Law, on the date | on which the time for commencement of such review has | expired; or | (2) if a timely action for review of the decision is | commenced under the Administrative Review Law, on the date | all proceedings in court for the review of such assessment | have terminated or the time for the taking thereof has | expired without such proceedings being instituted. | (d) As soon as practicable after the penalties specified | in a notice of proposed assessment are deemed assessed, the | Department shall give notice to the employer liable for any | unpaid portion of such assessment, stating the amount due and | demanding payment. If an employer neglects or refuses to pay | the entire liability shown on the notice and demand within 10 | days after the notice and demand is issued, the unpaid amount | of the liability shall be a lien in favor of the State of | Illinois upon all property and rights to property, whether | real or personal, belonging to the employer, and the | provisions in the Illinois Income Tax Act regarding liens, | levies and collection actions with regard to assessed and | unpaid liabilities under that Act, including the periods for | taking any action, shall apply. | (e) An employer who has overpaid a penalty assessed under | this Section may file a claim for refund with the Department. A | claim shall be in writing in such form as the Department may by |
| rule prescribe and shall state the specific grounds upon which | it is founded. As soon as practicable after a claim for refund | is filed, the Department shall examine it and either issue a | refund or issue a notice of denial. If such a protest is filed, | the Department shall reconsider the denial and grant the | employer a hearing. As soon as practicable after such | reconsideration and hearing, the Department shall issue a | notice of decision to the employer. The notice shall set forth | briefly the Department's findings of fact and the basis of | decision in each case decided in whole or in part adversely to | the employer. A denial of a claim for refund becomes final 120 | days after the date of issuance of the notice of the denial | except for such amounts denied as to which the employer has | filed a protest with the Department. If a protest has been | timely filed, the decision of the Department shall become | final: | (1) if no action for review of the decision is | commenced under the Administrative Review Law, on the date | on which the time for commencement of such review has | expired; or | (2) if a timely action for review of the decision is | commenced under the Administrative Review Law, on the date | all proceedings in court for the review of such assessment | have terminated or the time for the taking thereof has | expired without such proceedings being instituted. | (f) No notice of proposed assessment may be issued with |
| respect to a calendar year after June 30 of the fourth | subsequent calendar year. No claim for refund may be filed | more than 1 year after the date of payment of the amount to be | refunded. | (g) The provisions of the Administrative Review Law and | the rules adopted pursuant to it shall apply to and govern all | proceedings for the judicial review of final decisions of the | Department in response to a protest filed by the employer | under subsections (c) and (e) of this Section. Final decisions | of the Department shall constitute "administrative decisions" | as defined in Section 3-101 of the Code of Civil Procedure. The | Department may adopt any rules necessary to carry out its | duties pursuant to this Section. | (h) Whenever notice is required by this Section, it may be | given or issued by mailing it by first-class mail addressed to | the person concerned at his or her last known address or in an | electronic format as determined by the Department. | (i) All books and records and other papers and documents | relevant to the determination of any penalty due under this | Section shall, at all times during business hours of the day, | be subject to inspection by the Department or its duly | authorized agents and employees. | (j) The Department may require employers to report | information relevant to their compliance with this Act on | returns otherwise due from the employers under Section 704A of | the Illinois Income Tax Act and failure to provide the |
| requested information on a return shall cause such return to | be treated as unprocessable. | (k) For purposes of any provision of State law allowing | the Department or any other agency of this State to offset an | amount owed to a taxpayer against a tax liability of that | taxpayer or allowing the Department to offset an overpayment | of tax against any liability owed to the State, a penalty | assessed under this Section shall be deemed to be a tax | liability of the employer and any refund due to an employer | shall be deemed to be an overpayment of tax of the employer. | (l) Except as provided in this subsection, all information | received by the Department from returns filed by an employer | or from any investigation conducted under the provisions of | this Act shall be confidential, except for official purposes | within the Department or pursuant to official procedures for | collection of penalties assessed under this Act. Nothing | contained in this subsection shall prevent the Director from | publishing or making available to the public reasonable | statistics concerning the operation of this Act wherein the | contents of returns are grouped into aggregates in such a way | that the specific information of any employer shall not be | disclosed. Nothing contained in this subsection shall prevent | the Director from divulging information to an authorized | representative of the employer or to any person pursuant to a | request or authorization made by the employer or by an | authorized representative of the employer. |
| (m) Civil penalties collected under this Act and fees | collected pursuant to subsection (n) of this Section shall be | deposited into the Tax Compliance and Administration Fund. The | Department may, subject to appropriation, use moneys in the | fund to cover expenses it incurs in the performance of its | duties under this Act. Interest attributable to moneys in the | Tax Compliance and Administration Fund shall be credited to | the Tax Compliance and Administration Fund. | (n) The Department may charge the Board a reasonable fee | for its costs in performing its duties under this Section to | the extent that such costs have not been recovered from | penalties imposed under this Section. | (o) The Department shall post on its Internet website a | notice stating that this Section is operative and the date | that it is first operative. This notice shall include a | statement that rather than enrolling employees in the Program | under this Act, employers may set up a qualified retirement | plan sponsor an alternative arrangement , including, but not | limited to, a defined benefit plan, 401(k) plan | , a Simplified | Employee Pension (SEP) plan, or a Savings Incentive Match Plan | for Employees (SIMPLE) plan , or an automatic enrollment | payroll deduction IRA offered through a private provider . The | Board shall provide a link to the vendor Internet website | described in subsection (i) of Section 60 of this Act, if | applicable. | (Source: P.A. 102-179, eff. 1-1-22 .) |
Effective Date: 1/1/2025
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