Lawmakers considering 3% forced retirement plan

By Anna Carrera

Published 05/23 2014 04:39PM

Updated 05/23 2014 05:45PM

ILLINOIS -- The state could force you into a retirement plan and it could mean less money in your paycheck. The proposal isn't sitting well with some business leaders. It would work like an IRA, but the state would be in charge of your money. It would only affect workers at companies which don't already have a retirement plan in place.

The state would take 3% of every paycheck and invest it in a state retirement plan. Everyone who qualifies would be enrolled automatically, but you could opt out. If you forget to do that, you'd be stuck with it. Champaign County business leaders say they don't like the idea.

"They want to force people to save for retirement," said Champaign County Chamber of Commerce President Laura Weis. "Quite honestly, given the state of Illinois' fiscal health, I'm not sure why anyone would want trust the state of Illinois with their retirement money." 

Weis says employers should have the opportunity to offer whatever kind of plan they choose. She says there's no need for the state to get involved. Chamber leaders are encouraging businesses to tell lawmakers the same thing.

The bill has already gone through some revisions and is heading to the House floor.

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