There are proposed changes for the New York State Retirement Law which would require many New York employers to provide their employees with access to a retirement savings plan. The New York State Secure Choice Savings Program aims to help an estimated 3.5 million private sector workers who currently lack access to an employer-sponsored retirement plan start saving for their future.
Here are the key details New York employers should know when the mandate goes into effect:
Employer Requirements
- Employers with 10 or more employees aged 18 and over in New York State must offer a retirement savings option
- This can be either the employer’s existing retirement plan, such as a 401(k), or the state-run Secure Choice program
- If selecting Secure Choice Savings Program, employers must enroll all eligible employees for an initial 30-day period, although employee participation is voluntary
What is Secure Choice?
- Secure Choice is a Roth IRA program funded through payroll deductions
- The standard default contribution rate is 3% of the employee’s gross pay but can be changed by employee
- Accounts are portable so employees keep their savings if they change jobs
- Employers are not permitted to contribute to employees’ accounts
For the most updated information, please visit New York Secure Choice Savings Program Board (ny.gov).
This communication should not be construed as legal advice. Please consult with your attorney accordingly.
