Passing with the bare minimum number of votes needed, SB 2758 passed the Illinois Senate this week 30-22-2 and now goes to the House.
The bill mandates that certain employers set up an automatic individual retirement account for their employees, a system to be administered by the Illinois Department of Revenue and a newly-created board led by the Illinois Treasurer.
After being amended, the legislation now targets small businesses with 25 or more employees and forces them to not only set up the accounts but also automatically deduct at least 3% from their employees’ paychecks. An employee would have to actively pursue “opting out” if they did not want to participate.
A broad based coalition of business groups, insurance and financial companies, agents and the banking industry worked hard to defeat the measure.
NFIB/Illinois opposes the measure because it mandates business owners to offer an Individual Retirement Account to their employees and sets up a state run IRA plan allowing government to intervene in the marketplace.
Please contact your state representative today and tell them to vote NO on SB 2758.
PHOTO: Wikipedia
