New Yorkers will soon have a new way to save for retirement.
A measure approved by Governor Kathy Hochul was signed into law earlier this year, intending to trigger the implementation of a 2015 provision that creates a retirement savings program for workers where employers do not offer one.
The measure will enroll workers without a retirement savings plans automatically into a payroll-deducted IRA.
“Part of ensuring that New Yorkers are financially stable is guaranteeing they have a reliable retirement plan,” Hochul said. “This legislation allows all workers to have a sense of relief and security when it comes to retirement.”
Will businesses and workers be forced to participate?
Any business with 10 or more employees would be impacted. Altogether 2.5 million workers would be enrolled. However, workers can unenroll anytime they would like; and if their employer has fewer than 10 workers – it won’t matter.
“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,” said Sen. Diane Savino, a Democrat who had sponsored the legislation in the state Senate. “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.”
The AARP was supportive of the legislation, and called it necessary to bolster savings for workers. Especially those who work low-income jobs. Business groups said administration of these efforts would hurt employers.