Add Art 14-C §§570 - 586, R & SS L; add §§99-aa & 99-bb, 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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8332F
SPONSOR: Rodriguez 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 is bill 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 SPECIFIC 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: program established, composition of the
board, fiduciary duty, duties of the board, risk management, investment
firms, investment options, benefits, employer and employee information
packets and disclosure forms, program implementation and enrollment,
payments, duty and liability of the state, duty and liability of partic-
ipating employers, audit and reports, penalties, delayed implementation,
and federal considerations.
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 9 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 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 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 Enacts penalties for enrollment failure.
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.
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:
none
FISCAL IMPLICATIONS:
To Be Determined
EFFECTIVE DATE:
Immediately
