Illinois Retirement Plan a Go With or Without Safe Harbor

Illinois will push forward with its Secure Choice retirement savings program with or without a U.S. Labor Department rule that holds employers harmless under federal employee benefits laws, State Treasurer Michael Frerichs told Bloomberg BNA Feb. 10.

At the same time, Frerichs conceded a congressional effort to repeal a safe harbor from the Employee Retirement Income Security Act for state-sponsored auto-enroll retirement programs would “create uncertainty” for employers. “These employers won’t know if they are subject to ERISA or not, and ultimately taxpayers will bear the litigation costs,” he said.

Illinois employers will begin enrolling their workers in Secure Choice ...