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Summary of differences between federal and state regulations
Employee benefits are generally covered under the federal jurisdiction of the Employee Retirement Income Security Act (ERISA).
Federal ERISA plans generally do not have to comply with state laws. ERISA rules preempt or block state laws that relate to ERISA plans. State insurance laws, however, do apply.
Beginning November 2018, employers who have more than 500 employees and do not sponsor a qualified retirement plan will be required to comply with the new Secure Choice Savings Program Act. The program would require employers to automatically withhold and remit five percent of an employee’s wages to the Secure Choice program.
Employees may elect to withhold different amounts or refuse to participate entirely. The program will begin applying to progressively smaller employers, eventually covering with those with 25 or more employees in late 2019.
State
Contact
Department of Financial and Professional Regulation, Department of Insurance
Regulations
Illinois Secure Choice Savings Program Act, Public Act 098-1150
www.ilga.gov/legislation/publicacts/fulltext.asp?Name=098-1150
Federal
Contact
Employee Benefits Security Administration (EBSA), Office of the Assistant Secretary
Regulations
29 CFR chapter XXV (Parts 2509 – 2590)