Governor Hochul Signs Legislation Ensuring Retirement Plan Security for Private Sector Employees
Legislation (S.5395-A/A.3213-A) Requires Private Sector Employers to Automatically Enroll Employees in New York State’s Secure Choice Savings Plan
New York (STL.News) Governor Kathy Hochul signed legislation ensuring retirement plan options for private sector employees. Requiring that private sector employers who do not provide their employees with a retirement plan, automatically enroll their employees in New York State’s Secure Choice Savings Plan promotes retirement saving in a convenient, low cost, and portable manner. Employees are able to opt-out of the program at any time.
“Part of ensuring that New Yorkers are financially stable is guaranteeing they have a reliable retirement plan,” Governor Hochul said. “This legislation allows all workers to have a sense of relief and security when it comes to retirement.”
Established in 2015 by the “New York State Secure Choice Savings Program Act”, the Secure Choice Savings plan is a self-sufficient retirement savings program in the form of an automatic enrollment payroll deduction IRA. The program is overseen by the New York State Secure Choice Savings Board, composed of nine appointed members. The Department of Taxation and Finance will oversee the development and implementation of the program as the board sees fit.
Senator Diane Savino said, “There are millions of New Yorkers that don’t have that secure retirement but that will no longer be the case and I applaud Governor Hochul for signing the expanded NYS Secure Choice Savings Program. Everyone thinks that when they are 22 or 23 they aren’t going to be 52 or 53, they always think they have time to save for retirement. Secure Choice will provide private-sector employees with an automatic, portable vehicle for retirement savings that will help ensure income security in retirement.”
Assemblymember Robert Rodriguez said, “Thank you to Governor Kathy Hochulfor making the Secure Choice Savings plan a reality. Having the Secure Choice Savings Plan be available to all automatically will help end disparities in New Yorkers’ ability to save for retirement, which is aimed to assist working New Yorkers prepare for their future – and provide them the confidence knowing they can choose how they live as they age with more financial security. Today marks a monumental and victorious day for the future of hard working New Yorkers. This could have not been possible without the help of my partners Senator Diane Savino and AARP.”
AARP New York State Director Beth Finkel said, “Governor Hochul is empowering millions of working New Yorkers to save for a financially secure and independent retirement – while providing small businesses an effective way to attract and retain employees. AARP applauds the Governor for signing this bill into law, and we thank her for her support of Secure Choice since before its enactment in 2018. We also thank the bill sponsors, Senator Diane Savino and Assembly member Robert Rodriguez, for their tireless work to create this program by introducing the original legislation and the bill that is now law – and helping guide both through the legislative process.”