On October 21, 2021, Governor Hochul signed a bill in to law creating the New York State Secure Choice Savings Program (Secure Choice), a state-sponsored retirement program. Originally enacted in 2018 as a voluntary program, the 2021 amendments make the program mandatory for covered employers, with some exceptions, and require automatic enrollment (with the option to opt out), among other changes.

In general, employers in New York must participate in Secure Choice if they meet the following criteria:

  • They are engaged in a business, industry, profession, trade or other enterprise in New York State, whether for profit or not for profit;
  • They have had 10 or more employees at all times during the previous calendar year;
  • They have not offered a qualified retirement plan in the last two years.

Though the appointed Board has not announced when the program will be open for enrollment, participating employers must provide a payroll deposit retirement savings arrangement within nine months of it opening. This date has yet to be determined. In addition, employers will be required to designate an open enrollment period at least once per year, automatically enroll each of their employees in the program (with the option to opt out), and deposit funds into the programs’ payroll deduction IRA on behalf of their participating employees.

As stated above, employers who have offered a qualified retirement plan in the last two years are not required to participate in the state run program. Lawley Retirement Advisors have the ability and expertise to help you implement your own qualified retirement plan for your employees to avoid the need to participate in the state program. Lawley Retirement Advisors are professional advisors who know the industry and have the power and flexibility to tailor plan designs and implement innovative retirement programs to meet your needs that also satisfy the requirements to bypass participation in the state’s program (after two years).

CLICK HERE for more information on the Secure Choice Program and some key differences between Secure Choice and other retirement options available through Lawley Retirement Advisors.

In addition, please feel free to contact a Lawley Retirement Advisor at info@lawleyretirement.com.