New York is finally introducing the Secure Choice Savings Program, a state-sponsored retirement savings program for private-sector employees who do not have access to workplace retirement plans. Employers who meet certain criteria must be prepared to act.
Secure Choice was established in 2021 and is now a part of the New York State General Business Law. The plan will be overseen by the New York Secure Choice Savings Program Board. Once live, covered employers will be required to take certain steps to help facilitate employee participation.
What is the Secure Choice Savings Program?
Secure Choice is a state-sponsored retirement savings program designed for private-sector employees who lack access to a workplace retirement plan. Under the program, eligible employees of participating employers are automatically enrolled in a Roth IRA, though they may opt out at any time. The accounts are also portable, allowing employees to retain their savings even when changing jobs.
Employers are not required to contribute to the accounts, manage investments or assume any fiduciary responsibility. Their sole obligation is to facilitate employee participation by enabling payroll deductions.
Which Employers Must Participate?
Employers must register and facilitate employees’ participation in the program if the employer:
- had 10 or more employees during the prior calendar year;
- does not offer a qualified retirement plan; and
- has been in business for at least two years.
What are the Employer Obligations Under the Program?
Secure Choice will notify employers by mail or email of their requirement to register, but employers can proactively register with their employer identification number (EIN) and unique access code. Covered employers are required to:
- Register for the program or certify they already offer a qualified retirement plan (e.g., 401(k));
- Distribute program information to employees, including details about automatic enrollment, contribution options and opt-out procedures; and
- Upload employee data to the program portal, including hire dates, employment status and contribution preferences.
- Facilitate payroll deductions, ensuring timely and accurate transmission of employee contributions to the program provider.
Compliance deadlines vary by employer size, and are as follows:
- Employers with 30 or more employees: March 18, 2026
- Employers with 15 to 29 employees: May 15, 2026
- Employers with 10 to 14 employees: July 15, 2026
The state will communicate directly to employees after enrollment. Employees will be automatically enrolled in a Roth IRA unless they opt out. The default contribution rate is 3 percent of wages, but employees may adjust this amount (up to 10 percent) or opt out entirely. Contributions begin approximately 30 days after enrollment.
What are the Next Steps?
New York’s Secure Choice Savings Program represents a significant shift in how retirement savings are supported for private-sector employees without access to employer-sponsored plans. While the program is designed to be low-burden for employers, compliance is mandatory for those who meet the criteria.
To prepare, employers should take the following steps:
- Determine Coverage Status
Review your workforce size and retirement plan offerings to assess whether your business is subject to the program requirements. - Monitor Communications from the State
Watch for official notifications via mail or email, which will include your unique access code and instructions for registration. - Register or Apply for Exemption
If covered, register using your EIN and access code. If you already offer a qualified retirement plan, submit documentation to request an exemption. - Prepare Employee Data
Begin collecting necessary employee information, such as hire dates and employment status, to ensure a smooth onboarding process. - Educate Your Workforce
Be ready to distribute program materials and explain the automatic enrollment process, contribution options and opt-out procedures. - Set Up Payroll Deduction Processes
Coordinate with your payroll provider to ensure timely and accurate deductions once contributions begin.
Additional information can be found on the official program website at www.NewYorkSecureChoice.com.
Harris Beach Murtha’s Labor and Employment Practice Group will continue monitoring the Secure Choice compliance requirements and related matters. If you need assistance, please reach out to attorney Daniel J. Palermo at (585) 419-8946 and dpalermo@harrisbeachmurtha.com; attorney Ibrahim Tariq at (585) 419-8556 and itariq@harrisbeachmurtha.com; or the Harris Beach Murtha attorney with whom you most frequently work.
This alert does not purport to be a substitute for advice of counsel on specific matters.
Harris Beach Murtha’s lawyers and consultants practice from offices throughout Connecticut in Bantam, Hartford, New Haven and Stamford; New York state in Albany, Binghamton, Buffalo, Ithaca, New York City, Niagara Falls, Rochester, Saratoga Springs, Syracuse, Long Island and White Plains, as well as in Boston, Massachusetts, and Newark, New Jersey.
