1. The Illinois Secure Choice Savings Program
Courtney Eccles, Program Manager
Illinois State Treasurer’s Office 01

2. Creation of Secure Choice
The Illinois Secure Choice Savings Program Act (Secure Choice) created as a response to the retirement crisis in Illinois
Access to an employment-based plan for workers
Lightest touch on employers (facilitate auto-enrollment, no contributions, no management, no fiduciary duties)
Secure Choice will impact approximately 1.2 million workers throughout Illinois
Program design and implementation are underway 02

3. Secure Choice Act Signed into law in January of 2015
State-run retirement savings program for private sector workers in Illinois
Secure Choice applies to businesses:
With 25 or more employees,
That have been operating in Illinois for at least two years, and
Don’t offer a qualified savings program 03

4. Participation and Accounts
Employees at qualifying businesses will be automatically enrolled into Secure Choice
Default deduction of 3 percent into a default target date Roth IRA
Employees can change contribution level, select a different fund option, or opt-out entirely
Accounts will be pooled together and privately managed, and will be portable 04

5. Employer Role Employers will: Employers will NOT:
Facilitate enrollment (and set up the payroll deductions)
Hand out Program packets (which will be provided in advance)
Employers will NOT:
Have any administrative or managerial obligations
Make any contributions
Pay any fees or costs associated with the program 05

6. Administrative Features
Managed by a seven person Board (day to day management by private sector vendor)
Treasurer’s Office provides administrative and staff support
Program must become self-sustaining
Any start-up costs appropriated by the state must be paid back
Total fees capped at 75 basis points
Program must not be subject to ERISA 06

7. Benefits for Workers
Access to a retirement savings vehicle at work (contribute through payroll deduction)
No high minimum initial contribution requirements
Caps on fees and additional protections through state program
Default options make participation easy
Employees have the option to increase/decrease contribution amounts, select different fund options, opt-out entirely
Full-time and part-time workers will be eligible 07

8. Program Implementation
Working on investment options, program design, legal issues, legislative changes, and education/outreach
Program Design
Facilitating enrollment (employers and employees)
Structuring entire process (first $ in through first $ out)
Selecting Program Manager (administrative services)
Legal and Legislative
Federal Safe Harbor
“Clean up legislation”
Investments
Determining investment policy
Selection of funds (type, how many to offer, etc.)
Selecting Investment Manager & Custodian
Education & Outreach
Engagement with employers and employees
Outreach before program rollout (program packets)
Ongoing marketing and outreach with participants 08

9. Implementation Continued
Focus on minimizing role of the employer and making enrollment as easy as possible for employees
Working with state agencies – gather information, communicate with employers
Meeting with stakeholders and industry regularly (record keepers, payroll providers, advocates, financial service organizations)
Partnering with the other states engaged in implementation (CA, OR, and CT primarily) 09

10. Program Rollout Enrollment of participants expected to begin in 2018
Phased rollout beginning with a pilot program
All employers will be made aware of the program but many may not begin participating until 2019 (in later phases)
Research on participant demographics, financial feasibility, and program design is underway
Final program design elements will be determined by early 2017
Program Manager RFP and selection will take place in spring/summer of 2017 10

11. Role of Advocates/Stakeholders
Engagement by advocates is crucial to the creation and passage of legislation, and the ultimate success of state programs. 11

12. Research and Legislation
Some states already have laws on the books, but many do not
Conduct state specific research
Work with legislative champions, State Treasurer, State Comptroller
Build diverse base of support – education on the issue will be key (public and policymakers)
Growing momentum for state programs – expect significant activity over next few years 12

13. Assisting with Implementation
Engage with the process – many state programs operated by Boards with open/public meetings
Provide research/resources (most programs have limited/no budget for start up)
Participate in state rulemaking process
Serve as resources to Board and staff (expertise in consumer protections, asset building, focus on LMI workers)
Outreach and education to employees/employers
Focus groups, messaging, key considerations for lower-income workers
Continue to be public voice of support for programs 13

14. More Information
Treasurer’s Website includes a page for Secure Choice (
address for questions
Board materials (agendas, minutes, approved documents)
One page introductory fact sheet
More information will be added in the coming months
Contact Courtney Eccles: 14