Savings Access New York Retirement Program

Year enacted

2021

Status

Not yet active

Statute became effective on August 9, 2021 (90 days after the enactment date). The board has up to two years after the effective date to implement the program; however, per the legislation, the program will be discontinued if New York State enacts a retirement savings program that would cover a substantial portion of uncovered employers. See the description for the New York State program that was enacted.

Employers affected

Employers who at all times during the previous calendar year employed at least five employees whose regular duties occur in New York City, have been in business at least two years, and haven't offered or maintained a retirement plan in the preceding two years.

A retirement plan shall include a qualified retirement plan under Internal Revenue Code Sections 401(a), 403(a), 403(b), 408(k) or 408(p); or a savings incentive match plan for employees of small employers (SIMPLE IRA plan or SIMPLE 401(k) plan); a simplified employee pension (SEP); a salary reduction simplified employee pension (SARSEP); a payroll deduction IRA ; or the New York State Secure Choice Savings Program. 

Type of account

Roth IRA or traditional IRA (default IRA to be determined)

Automatic enrollment

Yes

Auto-escalation

No

Default contribution rate

5% (auto-escalation or reduction) of contribution rates may be adopted by the board

Employer contributions

Not permitted

Investment options

Default investment option and investments to be determined

Fees

No overall limits on administrative fees other than direction to maintain reasonable fees and costs to participants. Per the statute, all fees required for the administration of the retirement savings program shall be borne by participants or paid through funds received. 

Website

Not available; See bills for details: New York City Council law 051 and New York City Council law 052