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Illinois Secure Choice: A Guide to the State's Retirement Savings Mandate
Illinois Secure Choice is the state-sponsored retirement savings program launched in 2018 to help private-sector workers without access to employer-sponsored retirement plans start saving for the future. It also provides employers with a low-maintenance solution to offer retirement savings access in compliance with state law.
Officially launched in 2018 with a phased rollout based on company size
Employers offering a qualified retirement plan may apply for an exemption
The latest deadline (November 1, 2023) applied to employers with 5–15 employees
Beyond’s Illinois Secure Choice Guide walks you through eligibility, savings structure, and how private options can meet the same requirement
Research shows that saving for retirement remains a challenge for many private-sector employees. In response, states like Illinois have passed laws requiring eligible employers to offer a retirement plan — either through a state-run option or a private provider. These programs have generally had a positive impact on participation and long-term savings.
Illinois Secure Choice is one of many state programs across the U.S. Others include those in Virginia, Colorado, Connecticut, and New Jersey — with Hawaii and Minnesota planning to launch soon.
Illinois Secure Choice is a state-sponsored retirement program that automatically deposits a percentage of an employee’s paycheck into an Individual Retirement Account (IRA).
As of November 2022, any Illinois employer with five or more employees and operating for at least two years must offer access to a retirement savings plan. Employers can choose between:
Registering with Illinois Secure Choice, or
Providing a qualified retirement plan through a private provider
Past enrollment deadlines by company size:
500+ employees: 11/1/2018
100–499 employees: 7/1/2019
25–99 employees: 11/1/2019
16–24 employees: 11/1/2022
5–15 employees: 11/1/2023
All businesses with five or more employees must comply unless exempt.
Employers do not pay fees or make contributions. Employees pay an annual administrative fee of approximately 0.75%, or about $0.75 per $100 saved.
Yes. Employers may be exempt if they:
Have fewer than five employees
Have been in business for less than two years
Already offer a qualified employer-sponsored retirement plan
Exempt employers can apply using their EIN or FEIN and an access code (available upon request).
401(a) — including 401(k)
408(k) — Simplified Employee Pension (SEP)
403(a) — Qualified annuity plans
408(p) — SIMPLE IRA
403(b) — Tax-sheltered annuity
457(b) — Governmental deferred compensation
Employees must:
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Yes. Illinois Secure Choice uses a Roth IRA by default. Contribution limits (2025):
$7,000 annually (under age 50)
$8,000 annually (age 50 or older)
Employees are auto-enrolled at a 5% post-tax contribution rate (of gross pay)
They can adjust their rate or opt out anytime
Employers must enroll employees unless they opt out within 30 days
Contributions can go up to 10% based on employee preferences
Accounts are portable — employees keep them even if they change jobs
Employees are auto-enrolled at a 5% post-tax contribution rate (of gross pay)
They can adjust their rate or opt out anytime
Employers must enroll employees unless they opt out within 30 days
Contributions can go up to 10% based on employee preferences
Accounts are portable — employees keep them even if they change jobs
Yes. Under Section 85 of the Illinois Secure Choice Savings Program Act:
Employers may be fined $250 per employee in the first year of noncompliance
For each following year, the fine increases to $500 per employee
Years do not have to be consecutive to incur the higher penalty
Whether you choose Illinois Secure Choice or a private plan, offering a retirement benefit can support your employees’ financial futures and help you attract and retain top talent.
If you need help choosing the right plan for your business, the Beyond team is here to support you.
