New York Governor Kathy Hochul
New York state has officially launched its Secure Choice Savings Program, requiring employers that have been in business for two or more years and employ 10 or more people to automatically enroll their workers in a Roth individual retirement account.
These organizations face enrollment deadlines that vary according to their size, assuming that they don’t already sponsor a qualified retirement plan. Employers with 30 or more employees must register by March 18, while those with 15 to 29 employees must enroll by May 15. The smallest employer category with 10 to 14 employees must enroll by July 15.
The program is administered by the state and is structured similarly to Secure Choice programs in a growing number of states.
As of Thursday, 20 states have enacted state-backed retirement savings programs for private-sector workers, according to a Georgetown Center for Retirement Initiatives report. Seventeen are auto-IRA program states, with the remainder taking a variety of employer plan approaches.
Kathy Hochul, New York's governor, hailed the program’s formal launch after years of planning and a successful pilot period. She noted that over 50% of working New Yorkers do not have access to a retirement plan through their employer.
“With the launch of the New York State Secure Choice Savings Program, we are expanding access to retirement savings and empowering New Yorkers to invest in their future,” Hochul said. “The program provides another tool for employees to build long-term financial security and plan for a dignified retirement.”
New York's program is free and easy for employers, Hochul added, and allows employees to save automatically through payroll deductions into portable Roth IRAs that they own and keep. Administrators will notify employers required to facilitate the program and provide them with registration details.
Eligible employers can also enroll immediately on the program’s website.
Pictured: Gov. Kathy Hochul
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