This month, New York City Mayor Bill de Blasio signed the Retirement Security for All legislation, a retirement savings program for private-sector employees.
About one and a half million private-sector employees in New York City have no access to a retirement saving program through their employer. And the mayor is confident that “with Retirement Security for All, we’re fulfilling our commitment to make New Yorkers more financially secure as they age.”
The Retirement Security for All program is similar to California’s CalSavers law. That law provides employees a retirement savings program without the administrative complexity, fees, or fiduciary liability of existing options for employers.
Similar to CalSavers, the New York law creates a mandatory auto-enrollment payroll deduction IRA program for employees of private-sector employers who employ five or more employees and do not currently offer a retirement or pension plan. Employers are not required to contribute to the plans, but they are responsible for:
- enrolling employees who qualify
- withholding funds from earnings
- depositing funds into the program
- distributing information about the program
The law goes into effect in 90 days, but the government is giving itself up to two years to implement the program. However, employers who violate the law will face fines of as much as $1,000 for each eligible employee.
Do you need help determining your company’s responsibility regarding the Retirement Security for All program? The Boris Benic and Associates financial advisors are ready to be of assistance. Schedule an appointment today to discuss your options.