I recently spoke with an employee of the Chicago park district and mentioned how much I enjoy our neighborhood parks. She asked me which one was my favorite, and I realized I didn’t really know the official names of any of them.
They all have names to honor important people, but for me, the location is more important. For my boys, each one has earned a nickname based on what makes it special to them.
We frequently choose between “Ropes Park”, “Metra Park”, “Sand Park”, “Church Park”, and “Choo-choo Park.” (There are several more in our rotation, but I’ll spare you the full list.)
The boys don’t care so much about the benefactor of the park or the history behind the name. They care about things that matter to them. I realized something similar about our retirement savings program a few years ago.
We called it Secure Choice, because that’s how the original backers of a state retirement program referred to it. They wanted to stress that your money would be secure, but that you would have a choice about how you invest.
That sounded good, but many of the participants had no idea of the history and didn’t really understand what the name meant.
We recently hired a new program administrator to lower fees, improve the technology, and create a mobile app. We also used the transition to change the name.
The two things I have heard most frequently from people who appreciate the program are that it belongs to them, and that for many of them, for the first time in their lives, they have savings.
So I now want to introduce you to My Illinois Savings. It is a retirement savings program that is currently helping over 170,000 workers in our state save through workplace deductions. They have already collectively saved almost $400 million.
Some individuals have saved more than others, but they are all growing their retirement nest egg with every paycheck.
Although we hope this money is used for their retirement, it is their savings. If they find themselves in a financial emergency, some of that money can be taken out without penalty. I wanted to encourage people to save for their retirement, but I also want them to avoid predatory loans if they find themselves in an unforeseen financial emergency.
They still have the choice of increasing or decreasing contributions, depending on their financial situations. They can control how much risk they want to take with their investments. If they change jobs, their IRA is portable.
While the name is changing, why we started the retirement program is not. Starting June 16, savers can now keep more of their money and more easily manage it online or on their phone.
And that’s what my boys reminded me of. What matters to them at the neighborhood parks is reflected in what they choose to name them. The name “My Illinois Savings” is easier to understand and also reflects what’s important to the savers – “their” money. If you prefer a name with historical context and keeping things the same, well I’m sorry, keeping things the same is not in my Office’s DNA. Our willingness to change and improve programs means moving forward.
Sincerely,
Michael