Illinois Law creates new employer retirement withholding...

[The Captain]

...mandate.

www.pwc.com/en_US/us/state-local-tax/newsletters/salt-insights/assets/pwc-illinois-creates-new-employer-retirement-withholding-mandate.pdf




I don't know how many of you will get my sick humor, but this is so WRONG coming from the state with the most underfunded public pension system in the nation.

I also harbor grave concerns at the money/power grab by the Illinois legislature given they've got a dismal record of fiscal management.

*Sigh*

[Ombud]

 Any company with over 25 employees in business for 2 yrs? Do I hear a plethora of 1099s being created? So ostensibly there could be an increase of contract workers in a lot of non-retail Mom & Pops working less than 24 hrs a week? And this is supposed to help, how?

[The Captain]

BINGO!   Welcome to IL, where our legislature is doing is (un)level headed best to drive business out of the state.

[bean29]

So how many employers with more than 25 employees do not have a 401K plan?   Exactly how expensive do you anticipate this will be?

I have never worked for an employer that did not have a 401K plan other than maybe my first job at dairy queen.

I did notice the employee can opt out.

[Value Buy]

I imagine your new Governor might have a few choice words for this.

Maybe this could be his first plan of action.

That would drive em crazy in Chicago

[Ombud]

@sroo4, in that case, why would I (the employee) want to do that instead of a Roth? What's the point? I'm confused 

[marvholly]

Jan 12, 2015 10:38:31 GMT -5 The Captain said:

BINGO!   Welcome to IL, where our legislature is doing is (un)level headed best to drive business out of the state.

And our new governor in IL plans on fixing our fiscal mess. Yeah, right. With Madigan & Cullerton controlling the legislature I MUCH doubt he will get just about anything done.

[ArchietheDragon]

Jan 12, 2015 23:53:48 GMT -5 Ombud said:

@sroo4, in that case, why would I (the employee) want to do that instead of a Roth? What's the point? I'm confused 

For the employee it is an opt out program.   So the idea is that most people are lazy idiots and will not save for retirement on their own or opt out of a program that forces them to do so.  

[The Captain]

Jan 12, 2015 12:14:49 GMT -5 @sroo4 said:

I read the full bill... at least the money will be kept separate.  It makes it a little harder (not by much,  but a little) to appropriate it. 

What I don't understand is that the employers are not being forced to match it's not a 401K or equivalent it's a Roth IRA.   So it's really just a mandate that the employer has to offer the mechanism to the employee? Seems like there's going to be an awful lot of money wasted to administer something that is already an option for the employee on the open market. 

Truthfully the only real benefit I see is to those appointed to the board who don't get paid for their duties,  but do get expenses reimbursed.   

You've pretty much nailed it and did a much better job summarizing it than I could have.