If you want to see a template for the retirement plan of the future, check out the Secure Choice Savings Program enacted by the Illinois legislature in December.
Starting in 2017, all Illinois businesses with 25 or more employees must either: 1) offer a company-sponsored retirement savings plan; or 2) automatically enroll all workers age 18+ in a Roth IRA account within the state-sponsored plan.
The default automatic enrollment percentage will be 3% of salary, and the default investment choice is a target-date fund. Employees can opt-out of participation or actively choose other investment options. Neither the state of Illinois nor individual employers are required to fund costs of the program. (Administrative expenses will be passed through to participants.)
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