SB3278 - Illinois Automatic IRA Program Act

• Establishes the Illinois Automatic IRA Program administered by the State Treasurer to provide retirement savings accounts for employees of small employers.

• Applies to qualified small employers with 10-100 employees located in Illinois that have not offered a qualified retirement plan for the previous 2 years.

• Requires automatic payroll deductions of 2% by default (or employee-elected percentage) from employee compensation, with funds deposited into individual IRA accounts in a state-administered trust fund.

• State Treasurer must design an IRS-approved operational plan including payroll deduction arrangements, investment options with default selections, administrative service contracts, and proportional expense sharing among retirement accounts.

• Limits liability for the State of Illinois, employers, and program administrators for investment losses resulting from employee-selected or default investment decisions.