Chamber 401K Retirement Option
On November 1, 2022, Illinois state law will require every Illinois employer with sixteen (16) or more full-time and/or part-time (FT/PT) employees to offer their own retirement program, either through a private plan or through Illinois Secure Choice, a retirement program offered through the Illinois State Treasurer’s office.
Employers who do not comply with the law will be subject to fines and penalties as described in 820 ILCS 80/85. Employers are not required to contribute financially to these programs.
Employers that meet the following criteria must comply with the law by November 1, 2022:
- Employ sixteen (16) or more FT and/or PT employees
- Business operating at least two years
- Currently do not offer a qualified saving plan such as a 401(k), SEP IRA, or Simple IRA
Employers with five (5) or more FT and/or PT employees will be required to comply with the law effective November 1, 2023.
The Chamber has researched alternatives and is offering the new member benefit Signature Fiduciary Connect by John Hancock, which offers small to mid-size companies a simple, flexible and easy to administer plan. To qualify, you must be a member in good standing with The Greater Springfield Chamber of Commerce.
Regardless of what option is chosen, it is important that you ensure your business is in compliance.