Illinois Administrative Code › Title 74 - PUBLIC FINANCE › Part 721 - SECURE CHOICE SAVINGS PROGRAM › Subpart B - DEFINITIONS › Section 721.200 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
The following definitions shall apply to this Part:
"Act" means the Illinois Secure Choice Savings Program Act
				  [820 ILCS 80  ].
"Account" means the IRA of a participant established and
				  maintained under the Program.
"Account Revocation Period" means the period of time starting
				  from the date an employee's IRA is established and the employee receives the
				  disclosure statement and ending on the earlier of:
90 days after the date of the employee's first Secure Choice
				  Account contribution; or
the Close of Business on the Business Day that the employee
				  makes an Alternate Contribution Election;
provided, however, the Account Revocation Period shall last a
				  minimum of seven days from the date the IRA is established and the employee
				  receives the disclosure statement.
"Administrative Expenses" means all expenses associated with
				  the implementation and administration of the Program, including fees payable to
				  third parties providing services related to the Program.
"Administrative Fund" means the Illinois Secure Choice
				  Administrative Fund created in Section 5.867 of the State Finance Act [30 ILCS
				  105  ].
"Beneficiary" means any person or entity designated by the
				  participant to receive the benefits of the account in the event that the
				  participant dies.
"Board" means the Illinois Secure Choice Savings
				  Board
or its designee or designees, which includes the Treasurer or
				  one or more third party service providers
.
[820 ILCS
				  80/5  ]
"Business Day" means any day on which the New York Stock
				  Exchange is open for trading.
"Client Employer" means an individual or entity that has
				  contracted with a Professional Employer Organization to supply it with, or
				  assume responsibility for, personnel management of one or more workers who
				  perform services on an ongoing basis, rather than under a temporary help
				  arrangement as defined in Section 15 of the Employee Leasing Company Act [215
				  ILCS 113  ]. For purposes of this Part, an employee who is performing services
				  for a client employer pursuant to a contract between the client employer and a
				  PEO shall be treated as employed by the client employer.
"Close of Business" means the time of day that trading closes
				  on the New York Stock Exchange, generally 4 p.m. Eastern Standard Time.
"Day" means any calendar day.
"Department" means the Illinois Department of
				  Revenue
. [820 ILCS 80/5  ]
"Employee" means any individual who is employed by an
				  employer
or client employer
, and who has wages that are
				  allocable to Illinois during a calendar year under the provisions of Section
				  304(a)(2)(B) of the Illinois Income Tax Act
[35 ILCS
				  5  ]
.
"Employee" includes both part-time and full-time
				  employees. [820 ILCS 80/5  ]
"Employer" means a person, entity
or client
				  employer
engaged in a business, industry, profession, trade, or other
				  enterprise in Illinois, whether for profit or not for profit,
				  that:
has employed at least 5 employees in the State during
				  every quarter of the previous calendar year
as indicated in
				  employer-reported quarterly data submitted to the
				  Department
;
has been in business at least 2 years;
				  and
is not offering or contributing to a qualified
				  retirement plan.
"Employer" does not include the federal government,
				  the State, any county, any municipal corporation, or any of the State's units
				  or instrumentalities.
[820 ILCS 80/5  ]
"Fund" means the Illinois Secure Choice Savings
				  Program Fund.
[820 ILCS 80/5  ]
"Internal Revenue Code" means Internal Revenue Code
				  of 1986
(26 U.S.C.)
, or any successor law, in effect for the
				  calendar year.
[820 ILCS 80/5  ]
"Investment Policy" means the Investment Policy Statement
				  adopted by the Board, pursuant to the Act, which includes a risk management and
				  oversight program and sets forth the policies, objectives and guidelines that
				  govern the investment of contributions to the Program.
"IRA" means a Roth or Traditional IRA (individual
				  retirement account) under section 408 or 408A of the Internal Revenue
				  Code.
[820 ILCS 80/5  ]
"IRS" means the Internal Revenue Service.
"Online Portal" means the electronic platform utilized by the
				  program administrator to manage the daily operations of the Program.
"Participant" or "Enrollee" means any individual who has an
				  account.
"Participating Employer" means an employer
,
small employer,
or client employer
that facilitates a
				  payroll deposit retirement savings arrangement as provided for by the Act for
				  its employees.
[820 ILCS 80/5  ]
"Payroll Deposit Retirement Savings Arrangement"
				  means an arrangement by which a participating employer facilitates payroll
				  deduction contributions from enrollees to the Program.
[820 ILCS
				  80/5  ]
"Professional Employer Organization" or "PEO" means an
				  individual or entity that contracts with a client employer to supply or assume
				  responsibility for personnel management of one or more workers who perform
				  services for the client employer on an ongoing basis, rather than under a
				  temporary help arrangement as defined in Section 15 of the Employee Leasing
				  Company Act. For purposes of this Part, PEOs are not the employer of any
				  employee who is performing services for a client employer pursuant to a
				  contract between the client employer and a PEO.
"Program" means the Illinois Secure Choice Savings
				  Program.
[820 ILCS 80/5  ]
"Program Administrator" means the person or firm selected by
				  the Board to administer the daily operations of the Program and provide
				  marketing, recordkeeping, investment management, custodial, and other services
				  for the Program.
"Qualified Retirement Plan" includes a plan qualified under
				  section 401(a), 401(k), 403(a), 403(b), 408(k) or 408(p) of the Internal
				  Revenue Code. The term also includes an eligible governmental plan under
				  section 457(b) of the Internal Revenue Code, as well as Simplified Employee
				  Pension (SEP) plans, Savings Incentive Match Plan for Employees (SIMPLE) plans,
				  and Taft-Hartley plans. Payroll deduction IRA programs are not qualified
				  retirement plans.
"Small Employer" means a person or entity engaged in
				  a business, industry, profession, trade, or other enterprise in Illinois,
				  whether for profit or not for profit, that:
employed fewer than 5 employees during any quarter of
				  the previous calendar year
, as indicated in employer-reported
				  quarterly data submitted to the Department
;
has been in business less than 2 years;
				  or
meets both of these criteria,
but notifies the Board that it is interested in being
				  a participating employer.
[820 ILCS 80/5  ]
"Treasurer" means the duly elected Treasurer of the State of
				  Illinois or their designee or designees.
"Wages" means W-2 wages, as defined in  26 CFR 1.415(c) through  2(d)(4), that are
received by an enrollee from a participating
				  employer during the calendar year.
[820 ILCS 80/5  ] For purposes of
				  this Part, wages paid to employees by PEOs on behalf of a client employer shall
				  be deemed wages paid by a client employer. [820 ILCS 80/5  ]
"Withdrawal" means a distribution of assets from an
				  account.