Countdown to Compliance: What Employers Need to Know About New York’s Secure Choice Savings Program
New York has officially joined the growing list of states requiring certain private employers to offer retirement savings options. The New York Secure Choice Savings Program (Secure Choice or the Program) is moving closer to implementation, and employers, particularly those without an existing retirement plan, should be preparing now. What Is Secure Choice? Secure Choice is a state-sponsored retirement savings program structured as an automatic-enrollment Roth IRA. Employees are automatically enrolled but may opt out at any time. Contributions are funded through payroll deduction, and unlike a 401(k), employers do not contribute, manage investments, or assume fiduciary responsibility. Their role is limited to facilitating access. Who Must Participate? An employer will be covered under Secure Choice if it: Has 10 or more employees in New York at all times during the prior calendar year, Has been in business for at least two years, and Does not currently sponsor a qualified re...