Situation Report | August 16, 2021
In mid-May, New York City (NYC) Mayor Bill de Blasio signed legislation, “Retirement Security for All,” that establishes a retirement savings program for private employees in NYC.
It includes a mandatory auto-enrollment payroll deduction IRA program for employees of private sector employers who don’t offer a retirement plan and employ five or more employees. Employees are covered if they: (i) are 21 years of age or older; (ii) are regularly scheduled to work at least 20 hours per week; and (iii) have duties that regularly occur in NYC.
A to-be-established “Retirement Savings Board” will have up to two years to implement the savings program. There will be a “default” contribution rate of five percent of a covered employee’s wages to be made by the employee. Employees will be allowed to opt out or adjust the rate up to certain set levels.
All fees for the administration of the program shall be borne by participants or paid through funds received via loans, grants, or other contributions from financial firms, institutions or government entities.
More information is available here.