* Media advisory…

Illinois State Treasurer Michael Frerichs will stand with workers and employers who participate in Secure Choice, the innovative plan that created a mobile retirement savings account that travels with the worker.

Frerichs spearheaded the Secure Choice retirement savings program to combat the retirement savings crisis in Illinois and across the country. Illinois is a national leader in offering an auto‑enroll IRA program.

WHO: Illinois State Treasurer Michael Frerichs and Central Illinois workers and employers.

WHAT: Employees, employers and advocates will explain how Secure Choice works, how it combats the retirement savings crisis gripping the nation, and why it can save taxpayers money.

More than 100,000 workers and 6,400 employers participate in Secure Choice, with $82 million already saved.

WHEN: 10:30 a.m. on Monday, March 21, 2022.

WHERE: Capitol Blue Room in Springfield.

Chef Michael Higgins from Maldaner’s was one of the press conference participants and he talked about how he wishes he’d had something like this available when he was younger and about the benefits for his workers.

* About a half an hour before the press conference…

Republican State Representative Tom Demmer issued the following statement in advance of Treasurer Frerichs’ press conference on Illinois’ Secure Choice Retirement Program.

“Two years ago, Treasurer Frerichs joined with Governor Pritzker to support a radical tax increase plan on Illinois families. Frerichs even took the measure a step further by saying it could be ultimately used to tax retirement income—including pensions and 401ks—like Secure Choice. Thankfully voters rejected Frerichs’ call for taxing retirement income. However, with Frerichs continuously advocating for tax increases—even taxing retirement income—Illinois families and retirees have anything but secure choices for their hard-earned income and savings.”

In addition, over the last 8 years Frerichs has accepted over $275,000 from former indicted Speaker Michael Madigan’s run political action committees. To date, Frerichs has not returned any of these questionable contributions.

My first thought was that Demmer wants Frerichs to help pay Madigan’s legal expenses by refunding contributions.

* Frerichs was asked about both topics in his press conference. First up, taxing retirement income…

Q: Right around the time I sat down in this chair, I got an email from your opponent’s campaign saying ‘Retirement savings? Well, retirement income is just what Treasurer Frerichs wants to tax.’ What is it you want to do? And how are you going to drive away from this, I don’t know if you want to call it an albatross or some other sort of winged or assorted animal, is this going to continue?

A: This is only gonna continue because my opponent continues to talk about something that’s not an issue. I have stated clearly, time and time again in front of the media that I don’t support a retirement tax, I’ve proposed no retirement tax, I’m not going to propose any sort of retirement tax. My opponent keeps talking about this because he doesn’t want to talk about the real issues of retirement. His numerous votes to reduce retirement benefits. His vote against creation of Illinois Secure Choice, something that’s going to give people a better retirement.

* Madigan…

Q: Your opponent also in the email he sent out before your news conference talked about 275,000 you got from Madigan-linked political campaign funds. Do you just plan on giving that back somehow? What’s your reaction to this?

A: My opponent’s not reached out, I’ve not seen this. I don’t know what he’s referring to or how many [crosstalk, restating the question]

A: I think the justice system is working right now. Indictments have been filed. There’ll be a trial. And I think that we need to do, especially root out corruption in the state of Illinois. We need to have greater transparency and greater ethics to make sure that we don’t have corruption in our state.

Q: What about the campaign funds that you may have gotten from DPI under Madigan’s control? What should happen with those dollars?

A: I’m not aware of the funds he’s talking about.

* ILGOP press release after the press conference…

Illinois Treasurer Mike Frerichs was a deer in headlights today when asked if he would return over $275,000 in tainted campaign contributions from the former Madigan-run Democratic Party of Illinois over his tenure, claiming he now doesn’t recall one of his largest campaign donors.

Frerichs said he was unclear what the sources of campaign cash were, so let’s look at the most recent Madigan contributions to Frerichs’ campaigns for Treasurer:

• On October 17, 2014 Frerichs reported $38,712.96 from Madigan’s DPI Committee.
• On October 24, 2014 Frerichs reported $37,363.40 from Madigan’s DPI Committee.
• On October 27, 2014 Frerichs reported $73,632.24 from Madigan’s DPI Committee
• On November 24, 2014 Frerichs reported $40,000 from Madigan’s DPI Committee
• On October 31, 2018 Frerichs reported $55,400 from Madigan’s DPI Committee
• On November 15, 2018 Frerichs reported $30,000 from Madigan’s DPI Committee.

During his 15 years in Springfield, Frerichs has accepted over $275,000 in contributions from former indicted Speaker Michael Madigan’s run political action committees. To date, Frerichs has not returned any of these questionable contributions.

“It’s incredibly clear that Mike Frerichs has a Mike Madigan problem. Madigan was one of Frerichs’ largest donors in his campaigns for Treasurer, but now Frerichs says he doesn’t remember those contributions. Unbelievable, but true,” said Shaun McCabe, Executive Director of the ILGOP. “Frerichs needs to own up to his past support for and from Madigan and tell taxpayers what he intends to do with the over quarter of a million dollars in tainted contributions.”

DPI contributions are often pass-throughs from other sources so the candidates can obtain postage discounts. More than half of the above-mentioned DPI contributions were in-kinds for mailers.

…Adding… From Rep. Stephanie Kifowit (D-Oswego)…

My son who is in the Navy currently participates in an auto enroll type IRA. He has quite the nest egg already at 20 years old. I wish the military would have had that when I was in.

…Adding… Frerichs press release…

The innovative plan to create a mobile retirement savings account that travels with the worker topped the 100,000 enrollment milestone, Illinois State Treasurer Michael Frerichs said today.

Frerichs set up the Secure Choice retirement savings program to combat the retirement savings crisis in Illinois and across the country. Illinois is a national leader in offering an auto enroll IRA program. Workers in Illinois began saving in July, 2018.

“A retirement savings tool that can travel from job-to-job with the worker makes it easier to save, allows a worker to retire with dignity, and saves taxpayer money by reducing the need for publicly funded safety net programs,” Frerichs said.

Today, more than 100,000 workers and 6,400 employers participate in Secure Choice, with $82 million already saved. None of this was possible without Secure Choice. The 100,000 milestone was surpassed in the first quarter of this year.

“I chose to enroll in Illinois Secure Choice to increase my retirement options,” said Sam Hall, a father of three children who works as the program director for DREAAM in Champaign, the Rantoul Division, a social services organization helping boys and young men between the ages of 5 and 24. “The enrollment process was easy, and I feel more secure knowing I have a plan for retirement.”

DREAAM stands for Driven to Reach Excellence and Academic Achievement for Males. Tracy D. Dace is the Founder. “As a CEO, I was impressed with the ongoing support from the Illinois Secure Choice team to establish an account, enroll employees, and manage the administration of the deductions,” Dace said. “The built-in support indicated a commitment to excellent customer service and overall program quality.”

The General Assembly required employers to either offer a retirement savings plan or participate in Secure Choice, which is overseen by a seven-person board chaired by Frerichs. Secure Choice investments are managed by a private-sector financial services firm and kept in a trust outside of state government and its finances.

Key to passing legislation that created Secure Choice was the assurance that employers would not be financially liable for plan administration and would not be legally liable for investment changes. Employees can opt-out of the program at any time.

“I supported the expansion of Secure Choice as a state legislators because we need to be able to do more for our workers and small businesses,” said Mike Murphy, a former Republican lawmaker from Springfield and current President and CEO of the Greater Springfield Chamber of Commerce.

Enrollment began in 2018 with companies at least two years old and with 500 or more employees. Smaller companies enrolled in phases thereafter to ensure a smooth transition. The success was so strong that most business groups initially neutral or opposed to Secure Choice did not oppose the legislation passed by the General Assembly in 2021 to expand the program. That legislation requires employers with at least five employees to provide a retirement vehicle, or access to Secure Choice, by November, 2023.

The access is critical:

• Nearly half of all working-age families have nothing saved for retirement.
• Although Social Security is not intended to be the sole source of retirement income, 23 percent of Illinois retirees rely on Social Security for at least 90 percent of their retirement income.
• Workers are 15 times more likely to save for retirement if they can do so at work.
• However, 40 percent of Illinois private-sector employees work for a business that does not offer a retirement savings plan.

About Illinois Secure Choice
Illinois Secure Choice is managed by Ascensus, a private-sector financial services firm responsible for all recordkeeping and day-to-day aspects. Fund options include BlackRock, Charles Schwab, and State Street Global Advisors. Participants are enrolled in a default target-date Roth IRA with a five percent contribution rate. Participants can choose to change their contribution level or fund option at any time. More information can be found at www.ilsecurechoice.com.