Employers and savers of the Illinois Secure Choice Savings Program will benefit from lower fees and technology improvements, effective in June, the Illinois State Treasurer Michael Frerichs announced last week.
“A decade ago, too many Illinois workers didn’t have an easy way to save for retirement at work, so we set up a low-cost solution,” Mr. Frerichs said. “Now, workers have saved more than $300 million thanks to our Secure Choice retirement program. But we are always looking to improve, and today, we are cutting fees, making it cost less so they can save more.”
Beginning next month, the Illinois Secure Choice retirement program will be renamed My Illinois Savings. The state treasurer’s office facilitates the retirement savings program for private-sector workers. The program offers Illinois employers an easy way to offer a valuable retirement savings benefit with no charge to their business.
“Today we are helping more than 170,000 workers across all 102 counties save and grow their own money so that they can eventually retire and enjoy their golden years,” Mr. Frerichs said at a news conference Wednesday, May 6.
The program improvements come as Vestwell, a leading provider of Auto IRA programs, transitions in as program manager, effective Monday, June 15. After winning the competitive bid, Vestwell will oversee day-to-day operations, including online account access, contribution processing, customer service, and investment administration.
“As small business owners, we’re pulled in a lot of different directions,” Green Paws Chicago co-founder Robb Hendrickson said at the treasurer’s announcement. “My Illinois Savings helps us stay compliant, offers a meaningful benefit to our team, and does it without adding to our administrative workload.”
Program changes
“State-facilitated programs like My Illinois Savings are critical to closing the retirement savings gap, and these updates will make it easier for more workers, especially those without access to workplace plans, to build long-term financial security — and we’re proud to be part of making that happen,” Douglas Magnolia, chief revenue officer and president of Vestwell Government Savings at Vestwell, said.
Beginning June 15, My Illinois Savings will transition the retirement program to a new recordkeeping platform and deliver a more streamlined experience. An upgraded employer portal will offer automated payroll deductions and contribution submissions through integrations with some of the country’s largest payroll providers, including Gusto, Paychex, and QuickBooks Online. My Illinois Savings also will have a new, easy to use online portal and a mobile app.
What remains unchanged:
- Workers save through automatic payroll deductions into a Roth IRA that they own and control.
- Employers facilitate the program but do not contribute, pay program fees, or have fiduciary responsibility.
“Their retirement savings belong to them and will stay with them throughout their careers, even if they change jobs,” Mr. Frerichs added.
Program transition
The transition will take place beginning at 3 p.m. Thursday, June 11, through Sunday, June 14. The new system will go live at 8 a.m. Monday, June 15.
Saver accounts and investment selections will automatically be transferred to the new system. After launch, employers and savers will need to retrieve their accounts through the new portal to view balances, update information, and manage payroll contributions. For more information visit www.ilsecurechoice.com/home/conversion .
Workers can save through payroll deduction or self-funding and do not need to enroll through an employer to participate. Someone who is self-employed, freelance, or whose employer is not registered with the program can open an account if they are otherwise eligible to open an IRA.
Since launching Secure choice in 2018, the Illinois Treasurer’s Office has seen these program results:
- 170,151 Illinois workers have enrolled in the program.
- $339 million+ saved for retirement by Illinois workers.
- 25,000+ employers registered across the state.
- All 102 Illinois counties are represented in the program.
For more State Treasurer’s Office news, sign up for the Treasurer’s Note Newsletter here. For more information on Vestwell, visit www.vestwell.com.
