SPRINGFIELD, Ill. (AP) — A new state program will automatically deduct money from the paychecks of about 1.2 million Illinois residents for retirement savings.
The move could reduce the use of food stamps, Medicaid and other publicly funded social programs, said Illinois Treasurer Michael Frerichs. Illinois Secure Choice is being phased in more than three years after becoming law, The Daily Herald reported.
The state-sponsored retirement program works with certain businesses with 25 or more employees. The businesses will be connected with a financial firm that will provide ways for workers to build retirement savings with after-tax cash deducted from each paycheck for a Roth individual retirement account.