In October 2021, Governor Hochul signed AB3213 which amends New York State’s Voluntary Choice Saving Plan Program (“Program”) to become a mandatory program for NYS employers who do not offer a company-sponsored retirement benefit. Specifically, this amendment applies to for-profit and non-profit employers who have maintained an employee count of 10 or more, physically present in the state, over the course of the previous year and to those employers who have been in business for at least two years but have not provided a qualified retirement plan.
AB3213 became effective on December 31, 2021; however, the state needed to determine how oversight of the Program would be implemented and overseen and to start issuing guidance for compliance. On January 26, 2022, the NYS Board held a conference in order to determine that the responsibility for the development and execution of the program, would fall on the state’s Department of Taxation and Finance. It was also determined that the overseeing department will be responsible for the release of a request for proposals on the Board’s behalf to obtain a consultant to support with program design and the growth of future procurements for the NY Secure Choice program supervision and investment administration. At this time, it remains unclear regarding what types of investments will be allowed as part of the program or how they will be reviewed.
Next Steps for Employers
Those employers who are covered under the law will want to be cognizant of the implementation timeline and ensure they are taking the steps necessary ensure compliance with the program, whether that be opting into the state-issued program or by introducing a company-sponsored retirement benefit. As always, employers should seek the assistance of legal counsel for any concerns or challenges that they face with adherence of the law.