New York State Enacts Mandatory Retirement Plan for Private Sector Employees
Sarah S. Kim, J.D., LL.M.
12.2.21 | Client Alert
On October 21, 2021, New York Governor Kathy Hochul signed legislation to promote retirement savings options for private sector employees through the New York State Secure Choice Savings Program (the “Program”).
The legislation mandates that certain employers automatically enroll their employees in individual retirement accounts funded through payroll deductions. Employees can opt out of the Program. Participation in the Program is mandatory for an employer who: had at least ten employees at all times in the past year, has been in business at least two years, and has not offered a qualified retirement plan, including but not limited to 401(k) or 403(b) plans, in the preceding two years.
The Program will be administered by the New York State Secure Choice Savings Board (the “Board”). The Board may delegate the development and implementation of the Program to the New York State Department of Taxation and Finance.
Participating employers must establish a payroll deposit retirement savings arrangement within nine months after the Board opens the Program for enrollment. Presently, it is unclear when the Program will open for enrollment, and we will continue to monitor developments.
Questions: Please contact your Berdon advisor.
This alert is for general information purposes only and is not intended, and should not be construed, as legal or tax advice.