Situation Report | November 22, 2021
On October 21, Governor Hochul signed legislation that made some changes to previous legislation (2018-19 state enacted budget) that mandates certain employers either offer a qualified retirement plan or join a state-run retirement savings program known as the Secure Choice Savings Program.
This Savings Program applies to for-profit and not-for-profit organizations where the employer: (i) had at least ten employees in the state during the previous calendar year; (ii) has been in business for at least two years; and (iii) does not offer a qualified retirement plan.
Participating employers must: (i) set up a payroll deposit retirement savings arrangement; (ii) automatically enrollee each employee who does not opt of the program; (iii) withhold and remit employee contributions; and (iv) disseminate the state’s employee informational materials once available.
“Employee” means any individual who is 18 years of age or older, who is employed by an employer and who earned wages working for an employer in New York State during a calendar year.
The state is required to create an oversight Board (New York Secure Choice Savings Program Board) to develop rules and regulations for the program. Though the program is supposed to be implemented by December 31, 2021, the Board may delay implementation for up to one year.
HCA is awaiting implementation regulations and guidance, and will contact members once more information becomes available.