After years of delays, New York State’s Secure Choice Savings Program is finally moving forward. This law requires certain employers to offer a retirement savings plan to their employees—a major shift for businesses across the state. If you own or manage a company in New York, here’s what you need to know to stay compliant and protect your business.
Who Is Affected?
Under the law, any private-sector employer with 10 or more employees who has been in business for at least two years and does not currently offer a qualified retirement plan must provide access to a retirement savings program.
What Is the Secure Choice Savings Program?
The Secure Choice Savings Program is a state-sponsored retirement savings plan that uses payroll deductions to help employees save for retirement (https://www.tax.ny.gov/business/secure-choice/). Key features include:
- Automatic enrollment for eligible employees
- Roth IRA structure (after-tax contributions)
- Employee-controlled accounts
- Employer responsibility for facilitating payroll deductions—but no employer contributions required
Compliance Timeline
The program is expected to roll out in phases during 2026. Employers will receive notice from the state when it’s time to register and begin offering the plan. Failure to comply could result in penalties, so it’s important to prepare now.
Why the State Plan May Not Be Enough
While the Secure Choice program meets the legal requirement, it’s not always the best solution for employers or employees. Limitations include:
- No employer contributions (which can impact recruitment and retention)
- Limited investment options
- Minimal customization for your business needs
Potential Option: A Sponsored Retirement Plan
You don’t have to settle for the state-run program, employers can choose to implement a qualified retirement plan—such as a 401(k)—that offers:
- Greater flexibility and customization
- Employer contributions to attract and retain talent
- Broader investment choices
- Potential tax advantages for both employer and employees
How Point 32 Investment Partners Can Help
At Point 32, we specialize in helping businesses:
- Evaluate all available retirement plan options
- Design and implement a plan that meets state requirements
- Create a strategy that aligns with your company goals and supports your employees’ financial future
Offering a strong retirement plan isn’t just about compliance—it’s about building a competitive edge and a culture of financial wellness.
Next Steps
Don’t wait for the state to tell you what to do. Get ahead of the mandate and choose a solution that works for your business.
Contact Point 32 Investment Partners today to learn how we can help you navigate this new requirement and build a plan that will set up your employees—and your business—up for success. https://www.point32ip.com
Sources
- https://www.littler.com/news-analysis/asap/new-york-mandatory-employee-retirement-program-be-implemented-after-years-delays
- https://www.nysenate.gov/legislation/bills/2021/S5395
- https://www.tax.ny.gov/business/secure-choice/
This information is not intended as authoritative guidance or tax or legal advice. You should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.