Illinois Sen. Peters payroll deduction IRA bill passes House and Senate

Passed bill authored by State Sen. Robert Peters aims to improve the Illinois Secure Choice Savings Program by establishing a payroll deduction IRA for private-sector employees and ensuring program accessibility and cost controls, according to the Illinois General Assembly.

In the House, 73 Democrats and one Republican voted in favor of the bill, while 37 Republicans opposed it.

Meanwhile, in the Senate, 36 Democrats and 12 Republicans voted in favor of the bill, while six Republicans voted against it.

Peters introduced the bill in the Illinois Senate on Jan. 31, 2025 during the 104th session.

The legislation, known as SB1441, was passed on May 21, 2025 during the general assembly session 104.

According to the Illinois General Assembly site, the legislature summarized the bill’s official text as follows: “Amends the Illinois Secure Choice Savings Program Act. Provides that the accounts established under the Secure Choice Savings Program shall be IRAs, into which enrollees contribute funds that are invested in investment options established by the Illinois Secure Choice Savings Board. Provides that a separate account shall be established for each enrollee and the accounts shall be owned by the enrollee. Provides that the savings accounts established under the Program shall be portable and allow for an enrollee to make contributions from multiple employers into a single account. Provides that an enrollee in the Program may have both a Roth IRA and a Traditional IRA through the Program. Provides that the Board shall have the duty to assess the feasibility of agreements with other governmental entities, including other states and their agencies and instrumentalities, to achieve greater economies of scale through shared resources and to enter into those agreements if determined to be beneficial. Provides that an employer who fails without reasonable cause to enroll an employee in the Program within the time provided and fails to remit their contributions (rather than fails without reasonable cause to enroll an employee in the Program within the time provided) shall be subject to a penalty. Makes changes in provisions concerning employer and employee information packets. Effective immediately.”

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends the Illinois Secure Choice Savings Program Act to enhance the state’s retirement savings program. It establishes a payroll deduction IRA program for private-sector employees, administered by a board tasked with maximizing participation, ensuring portability, and maintaining low costs. Employers are required to automatically enroll employees in the program and remit contributions unless employees opt out. Penalties apply to non-compliant employers. The program offers both Roth and traditional IRA options and allows for contributions from multiple employers. Investment options are curated by the board, which must conduct performance reviews every four years. Administrative costs may be covered initially by state funds until the program is self-sustaining, and investment fees are capped at 0.25% of the total trust balance. The bill is effective upon becoming law.

The bill was sponsored by Rep. Gregg Johnson (Democrat-72nd District), Sen. Michael W. Halpin (Democrat-36th District), and Sen. Robert F. Martwick (Democrat-10th District), along with one other sponsor.

Bills in Illinois follow a multi-step legislative process, beginning with introduction in either the House or Senate, followed by committee review, floor debates, and votes in both chambers before reaching the governor for approval or veto. The General Assembly operates on a biennial schedule, and while typically thousands of bills are introduced each session, only a fraction successfully pass through the process to become law.

You can read more about bills and other measures here.

Peters graduated from Kansas State University in 2009 with a BS.

Peters, a Democrat, was elected to the Illinois State Senate in 2019 to represent the state’s 13th Senate District, replacing previous state senator Kwame Raoul.

Lawmakers listed as “Not Voting” were present for the vote but did not cast a vote. Those marked as having an “Excused Absence” were not present and formally provided a reason for their absence, which was accepted.