A04982 Summary:
| BILL NO | A04982B |
| SAME AS | SAME AS S04344-B |
| SPONSOR | Rodriguez (MS) |
| COSPNSR | Lupardo, Cook, Montesano, Sepulveda, Richardson, Mayer, Solages, Dilan, Pretlow, Pichardo, Rivera, Blake, O'Donnell, Nolan, Benedetto, Rozic, Arroyo, Titone, Davila, Joyner, Hooper, DenDekker, Walker, Gottfried, Aubry, Santabarbara, Gunther, Perry, Hunter, Bichotte, Crespo, Jean-Pierre, Braunstein, Lavine, Hevesi, Dinowitz, Jenne, Brindisi, Barron, Mosley, Stirpe, Fahy, Castorina, Raia, Rosenthal L, Skoufis, Lifton, Weprin, Ramos, Ortiz, Quart, Galef, Seawright, Simotas, Ryan, Bronson, Peoples-Stokes, Titus, Kim, Williams, Colton, Hyndman, Woerner, Carroll, Finch, Magnarelli, McDonald, D'Urso, Murray, Wallace, Jaffee, Palmesano |
| MLTSPNSR | Buchwald, Curran, Englebright, Glick, Lentol, McDonough, Ra, Simon, Skartados, Stec, Steck, Thiele |
| Add Art 14-C §§570 - 585, R & SS L; add §§99-bb & 99-cc, St Fin L | |
| Creates a self-sufficient retirement savings program in the form of an automatic enrollment payroll deduction IRA, and establishes an administrative board responsible for promoting greater retirement savings for private sector employees in a convenient, low-cost, and transferable manner. | |
A04982 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
TITLE OF BILL: An act to amend the retirement and social security law and the state finance law, in relation to enacting the New York state secure choice savings program act PURPOSE OR GENERAL IDEA OF BILL: The purpose of this bill is to create a self-sufficient retirement savings program in the form of an automatic enrollment payroll deduction IRA, and establish an administrative board responsible for promoting greater retirement savings for private sector employees in a convenient, low-cost, and transferable manner. SUMMARY OF PROVISIONS: Section 1 titles the Act the "New York State Secure Choice Savings Program Act". Section 2 amends the retirement and social security law to add a new article, 14-C. Section 570 defines terms: Board, superintendent, comptroller, employee, employer, enrollee, fund, internal revenue code, IRA, participating employer, payroll deposit retirement savings arrangement, program and wages. Section 571 establishes the New York State Secure Choice Savings Program, in the form of an automatic enrollment payroll deduction IRA, administered by the New York Secure Choice Savings Board. Section 572 Establishes the New York state secure choice savings board, composed of 8 appointed members. Section 573 outlines the fiduciary responsibilities and duties of the savings board. Section 574 outlines the responsibilities and other duties of the savings board. Section 575 requires the board to annually prepare and adopt a written statement outlining the provisions associated with risk management. Section 576 outlines the Investment Firm selection process and duties of investment manager. Section 577 outlines Investment Options. Section 578 outlines benefits Section 579 provides for the creation and distribution of employer and employee information packets and disclosure forms. Section 580 implements the New York state secure savings program within twenty four months after the effective date of this article. Section 581 outlines Employee contributions and payments Section 582 maintains that the state of New York shall have no duty or liability to any party for the payment of any retirement savings bene- fits accrued by any individual under the program. Section 584 requires the board to submit annual financial reports and audits. Section 585 delayed implementation. Section 99-x amends the state finance law to create the New York state secure choice savings program fund and the New York state secure choice administrative fund. DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): The amended version references the applicable provisions in labor law relat- ing to civil remedies for employees and penalties and fines for employ- ers under section five hundred and eighty of the bill. JUSTIFICATION: According to a survey by the Bureau of Labor Statistics, 97% of private- ly owned establishments, employing 500 workers or more, offer retirement and health benefits. That percentage is halved when compared to estab- lishments with less than 49 workers. Moreover, in 2014 President Barrack Obama suggested that states need to do more to provide workers with options to fund retirement plans due to congressional inaction. This legislation would provide employees of smaller establishment's access to retirement saving options. PRIOR LEGISLATIVE HISTORY: A8332f/S6045- 2015/16-reported to cal. 494 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: To be determined. EFFECTIVE DATE: Immediately