“lllinois Secure Choice Savings Program, will automatically enroll workers and will deduct an adjustable percentage per paycheck to set aside in an individual retirement account.
While workers will have the ability to opt out of the plan, all businesses within the state that have existed for at least two years and employ 25 people or more will be required to participate if they currently offer no savings plan. Should businesses not comply, they will be fined $250 per unenrolled employee.
“This is a really good idea,” says Dean Baker, an economist with the Center for Economic and Policy Research. “Half of America’s workforce has no retirement plan whatsoever. I know the argument is that everyone should invest in an IRA, but this is the real world, and everyone doesn’t.”