The New York State Secure Choice Savings Program is a state-sponsored retirement initiative for private-sector employees who do not have access to a workplace retirement plan. Originally enacted as a voluntary program, legislation passed in October 2021 (AB3213), amended the program to make participation mandatory for certain employers.
Background
Although the law took effect in 2021, implementation has been delayed, allowing for the establishment of the program’s governing board and completion of several foundational tasks. Before launching the program, the board was responsible for developing operational processes, authorizing procedures for payroll deductions, preparing educational materials, and issuing guidance for employers and employees. These steps were necessary to ensure the program is implemented in a structured and informed manner.
Covered employers include for-profit and non-profit organizations that have maintained 10 or more employees physically located in New York State throughout the prior calendar year, have been in business for at least two years, and have not offered a qualified retirement plan (such as a 401(k), 403(b), or 457(b)) within the past two years.
Once the program is opened for enrollment by the state-appointed board, covered employers will have up to nine (9) months to implement payroll deduction arrangements for eligible employees.
Key Program Details
- Automatic Enrollment and Contributions. Employees are automatically enrolled in a Roth IRA unless they opt out. Those who do not select a contribution level will default to a 3 percent wage deduction. Contributions may begin 30 days after enrollment, and employees may elect a percentage or flat dollar amount, subject to annual IRS contribution limits.
- Opt-Out and Re-Enrollment. Employees may opt out at any time. Re-enrollment is allowed during an annual enrollment period, or sooner if permitted by the program.
Employer Responsibilities
Employers are required to facilitate the program, including processing payroll deductions, submitting contribution and employee data, and maintaining employee status updates (e.g., contribution changes, new hires, terminations).
Employers are not responsible for managing investment options, answering employee questions about investments, or handling distributions or account changes. These functions are managed directly between employees and the program provider.
Registration Timeline
Employer registration is expected to open in late 2025. New York Secure Choice will notify employers when registration begins. Employers will need their Federal Employer Identification Number (EIN) and the unique Access Code provided in the state’s notice.
If an employer receives a registration notice but already offers a qualified retirement plan, they may use their Access Code and EIN to certify an exemption from the program. Employers who lose or misplace their Access Code can have it resent via email.
Next Steps for Employers
Employers should assess their workforce size and current retirement offerings to determine whether they meet the eligibility thresholds. Those without a qualified plan should begin preparing to facilitate the Secure Choice program, while employers with an existing plan should gather documentation to certify their exemption once registration opens.
Upon receiving notice from the state, employers will be required to either enroll in the program or submit exemption certification. To support implementation, the state has published a range of resources, including a registration checklist, employee upload template, contribution submission guidance, and record maintenance instructions. Employers are encouraged to review these materials in advance to align internal systems and ensure effective implementation.
For support in evaluating program requirements or exploring alternative plan options, employers should consult legal counsel or a retirement plan advisor.
