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Bill Passes to Implement Retirement Plan in Illinois

Dave Dahl / IRN
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Photo: Thinkstock

Photo: Thinkstock

Election Returns

SPRINGFIELD, Ill. (IRN/CAPITOL BUREAU) – If you have little to no retirement savings, you’ve got that in common with a lot of people.

A bill sponsored by State Senator Daniel Biss requires employers without a plan to create one. Some, like Senator Jim Oberweis, wonder why employers can’t just fend for themselves.

“Rather than cramming this plan down everybody’s throat, why don’t we just legislatively give the authority to every company to implement their own plan and use a negative response,” Oberweis says.

He also says they have that precise authority today, and that it is currently the case that 57 percent of large companies offering a 401k use the negative response or the opt-out revision.

“Most people who work for an employer that offers no base retirement plan, they would be automatically enrolled at a three percent payroll deduction in an IRA,” Biss says. “They could opt-out, if they didn’t want to do it, they could may more or less if they wanted.”

The bill needed a vote of 30, and barely passed the Senate with 31 votes.

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