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Home Banking & Finance

Gov. Hochul signs law ensuring private sector employees retirement plan option

Bridget McCusker by Bridget McCusker
December 13, 2021
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Gov. Kathy Hochul on Thursday, Oct. 21 signed into law the requirement for private sector employees to either provide their employees with a retirement plan or automatically enroll them in New York state’s Secure Choice Savings Plan.

“Part of ensuring that New Yorkers are financially stable is guaranteeing they have a reliable retirement plan,” Hochul said. “This legislation allows all workers to have a sense of relief and security when it comes to retirement.”

The Secure Choice Savings Program Plan is an IRA automatically deducted from an employee’s payroll, established in 2015 by the New York State Secure Choice Savings Program Act.

The program’s development and implementation are overseen by the Department of Taxation and Finance. Employees who do not wish to participate can opt out of the program at any time.

“Governor Hochul is empowering millions of working New Yorkers to save for a financially secure and independent retirement – while providing small businesses an effective way to attract and retain employees,” said Beth Finkel, director for AARP, New York state. “AARP applauds the Governor for signing this bill into law, and we thank her for her support of Secure Choice since before its enactment in 2018.

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