State Launches Worker Secure Choice Retirement Savings Plan
The state government is now sponsoring a retirement savings program for private sector employees who lack access to a workplace plan. Gov. Kathy Hochul announced the program, called the New York State Secure Choice Savings Program, earlier this month.
The plan lets employees save automatically through payroll deductions into a Roth IRA. It’s designed to be easy for employers to implement.
What You Need to Know
Starting soon (expected late 2025), New York State law will require most businesses with:
- 10+ employees,
- Two or more years in operation, and
- No existing retirement plan
to register and facilitate this savings program.
Advantages for Employers
- No cost to the employer. Employees fund their own accounts.
- No fiduciary responsibility. The state manages the program.
- Easy setup. The employer just handles payroll deductions.
- Boost retention. Employees value employers who help them save for the future.
Advantages for Employees
- Automatic payroll savings
- Flexible contribution rates
- Fully portable– their account follows them wherever they go
The Bottom Line
More than half of New Yorkers lack access to a workplace retirement plan. Secure Choice helps close the gap without creating extra work for insurance agencies and other small businesses.
More information is available at newyorksecurechoice.com.
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