Private-sector employees across New York State now have a new option to save for retirement if their employer doesn\u2019t offer a 401(k) or another workplace savings plan, Gov. Kathy Hochul announced Wednesday.<\/p>\n
She said the state’s Secure Choice Savings Program is expanding statewide after an initial test proved successful. The program is mandatory, though employers can seek an exemption and employees can opt out.<\/p>\n
Secure Choice\u00a0requires employers to deduct at least 3% of an employee’s\u00a0gross pay for their Roth Individual Retirement Account. The deduction amount may be changed by the worker at anytime and the retirement account accompanies them if they change employers, according to the program\u00a0description.<\/p>\n
\u201cThe program provides another tool for employees to build long-term financial security and plan for a dignified retirement,\u201d Hochul said, adding that more than 1.5 million workers are eligible for Secure Choice.<\/p>\n
Employers don’t make matching contributions or assume fiduciary responsibility unlike with other retirement savings plans. <\/p>\n
Secure Choice only covers employers that have been in business for two years or more, have 10 or fewer employees, and don’t offer a\u00a0qualified retirement plan\u00a0such as a 401(k) or\u00a0403(b).<\/p>\n
Employees can choose from investment options such as BlackRock funds tied to their retirement year and State Street’s growth and income funds, the description states.<\/p>\n
More information is available at newyorksecurechoice.com<\/a>.<\/p>\n The program is overseen by the Department of Taxation and Finance, whose acting commissioner, Amanda Hiller, said the fact that payroll deductions are automatic will help “more New Yorkers take control of their financial future.\u201d<\/p>\n Secure Choice was established four years ago<\/a> when Hochul signed legislation into law.<\/p>\n