Years after first being established in 2021, New York’s state-run retirement program is finally set to go into effect in March of 2026. The New York State Secure Choice Savings Program was originally established in 2021 to set up Roth IRAs for private employers who do not otherwise offer qualified retirement plans to their employees. Now, after significant delays, the majority of employers in New York state will be required to register for the new program next starting March if they:
The exact deadlines to either register in the program or certify that employers already offer a qualified plan vary based on size. Employers with 30 or more employees must do so by March 28, 2026; employers with 15-29 employees by May 15, 2026, and employers with 10-14 employees by July 15, 2026.
One registered, employers will not be charged fees to participate or make matching contributions, but employees will face a $28 annual fee plus an additional asset-based fee that will range between .22% and .31% of the total amount invested. All employees 18 years of age and older who are enrolled in the program will have 30 days to customize their contribution rates or opt out, otherwise they will be subject to an automatic rate of 3% of their gross income, though it will be the employer’s responsibility to ensure that such amounts are deducted from an employee’s pay.
Outside Legal Counsel LLP advises business of all sizes on employment matters, including compliance with new laws and regulations. If you are an employer looking for guidance on how to comply with this or any other labor law in New York, please contact us today.
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