Illinois Senate approves retirement savings plan (Springfield State Journal-Register)

Illinois senators voted to create a retirement savings plan for many workers who do not have access to a retirement plan where they work.

The Illinois Secure Choice Savings Plan was approved on a 30-22 vote, the bare minimum for it to pass.

Under the plan, workers at companies that have more than 25 employees and that do not offer a retirement plan could participate in the program.

If the bill becomes law, those workers will automatically be enrolled in the plan unless they opt out of it. If they participate, 3 percent of their paychecks will be deducted and deposited into a retirement account. Money from all participating workers will be pooled and invested in a retirement investment plan run by a private company selected by a board.

Sen. Daniel Biss, D-Evanston, said the plan will not cost the state any money and will require only minimal effort by businesses that are part of it. At the same time, he said, it will provide retirement security to millions of Illinoisans who are not now saving adequately.

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