New York to Launch State Retirement Savings Program This Fall

Certain New York employers that do not provide a retirement benefit will be required to enroll in the Empire State’s retirement savings program this fall, according to a fact sheet published by the New York state government.

The New York State Secure Choice Savings Program is New York’s savings vehicle for private sector employees who lack access to a retirement plan at work. The program was created in the 2018-19 state budget as a voluntary mechanism to deposit payroll deductions into Roth individual retirement accounts, available to employees of organizations that chose to adopt the offering.

In 2021, New York Governor Kathy Hochul signed a bill amending the program and making it mandatory for certain covered employers. Enrollment remained voluntary, however, to allow the state to establish the governing board and complete foundational tasks for which the board is responsible. The state fact sheet states that program enrollment is “anticipated to begin in fall 2025,” and employers will be notified when it is time to register.

When mandatory enrollment launches, New York employers that had at least 10 employees in the previous calendar year; have been in business for at least two years; and do not offer a qualified retirement program will be required to register and facilitate their employees’ participation in New York Secure Choice. Employers will have nine months to register, upload employee data and start deductions. Employees will be automatically enrolled at a saving rate of 3% of gross pay but can opt out at any time.

The next New York Secure Choice Savings Program board meeting will be held at the New York State Department of Taxation and Finance in Albany and via videoconferencing on October 7 at 11 a.m. Eastern Time. Employers eligible for the program can learn more through a presentation by Vestwell—the program administrator—and a “National Landscape of State-facilitated Retirement Savings Programs” presentation from the Georgetown Center for Retirement Initiatives.

New York would be the 14th state to implement a state-facilitated retirement savings program. In July 2024, New Jersey implemented its RetireReady NJ auto-IRA program for organizations in business for at least two years with at least 25 employees. The same month, Delaware launched DE EARNS, a savings vehicle mandated for employers that have been operational for at least six months, have at least five W-2 employees and do not offer a qualified retirement plan.

CalSavers, California’s state-sponsored plan launched in 2019, remains the largest plan through several metrics. The plan holds more than $1.4 billion in assets and includes 163,107 employers and 572,989 funded accounts as of August 31, according to the Georgetown CRI.

Eleven states with functional auto-IRA programs held nearly $2.4 billion in assets as of August 31. Including Massachusetts’ multiple employer program and Washington’s retirement marketplace, state-run retirement programs hold more than $2.45 billion in assets.