Benefits & Executive Compensation News

New Automatic IRA Program in Illinois
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Jan. 27, 2015, 5:00 AM

Employee benefits professionals are pointing to several potential impediments to Illinois’s new Secure Choice retirement savings program, despite broad enthusiasm from workers toiling without employer-sponsored benefits and policy makers working on retirement security issues in other states.

Three critical unanswered questions involve whether Illinois’s “automatic IRA” program will qualify for favorable federal tax treatment typically accorded to individual retirement accounts; whether the program will be viewed as an “employee benefit plan” under the Employee Retirement Income Security Act; and whether any employer liability is triggered under ERISA.

Section 95 of the Illinois Secure Choice Savings Program Act (Illinois Public...

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