A new state program will automatically deduct money from the paychecks of about 1.2 million Illinois residents for retirement savings.
Illinois Treasurer Michael Frerichs says the move could reduce the use of food stamps, Medicaid and other publicly funded programs. The Daily Herald reports that Illinois Secure Choice is being phased in more than three years after becoming law.
The state-sponsored program works with businesses that don't offer savings plans that have been operating for at least two years with 25 or more employees. The businesses will be connected with a financial firm that'll provide ways for workers to build a savings for retirement with after-tax cash deducted from each paycheck for a Roth individual retirement account.
The U.S. Chamber of Commerce opposes the program, calling it a "poor substitute" for typical employer-provided retirement plans.