ASAP
New York Mandatory Employee Retirement Program to be Implemented After Years of Delays
After considerable delay, employer registration for the New York State Secure Choice Savings Program (“New York Secure Choice” or “the Program”) is now open. New York Secure Choice—which was established in 2021 by New York General Business Law Article 43—is New York's state-run retirement program that mandates and facilitates the creation of Roth IRAs for private-sector employees who do not have access to a qualified retirement plan through their employers. Beginning in March of 2026, New York will require most private-sector employers to register for the Program or certify their exemption from the Program.
Private employers are required to participate in New York Secure Choice if they:
- Have been in business for at least two years;
- Employed 10 or more employees in New York in the previous calendar year; and
- Do not offer employees a qualified retirement plan.
Importantly, there are no fees for employers to participate in the Program, and there are presently no employer-contribution or matching requirements. However, enrolled employees can expect to be charged a $28 annual fee (billed at $7 per quarter) plus an annual asset-based fee ranging from 0.22% to 0.31% of the total amount invested.
All employees 18 and older who have earned taxable wages from an enrolled New York employer must participate in the Program, and participating employers must automatically enroll each of their eligible employees in the Program. After enrollment, employees will have just 30 days to (1) customize their contribution rate and investment selections, or (2) opt out of the Program altogether. Any employee who does not take affirmative steps to customize their participation in the Program or opt out will be subject to automatic contributions of 3% of gross income. Contributions must be deducted from the employee’s wages and the employer will bear responsibility for remitting the contributions to the Roth IRA.
Notably, employers that currently offer their employees a qualified retirement plan are not required to enroll in the Program but must instead certify their exemption from the Program by reporting certain information about their retirement plan offerings to the Secure Choice Savings Program Board (the “Board”), the seven-member governing body of the Program.
Employer registration and/or exemption certification deadlines vary based on each employer’s headcount. While the Board plans to contact each private-sector employer when it is their time to register or certify their exemption, employers should be aware of the following deadlines:
- March 18, 2026: Employers with 30 or more employees
- May 15, 2026: Employers with 15 to 29 employees
- July 15, 2026: Employers with 10-14 employees
In light of these upcoming changes, employers should take affirmative steps to determine whether they are exempt from the Program, either by nature of their employee headcount or their sponsorship of a qualified retirement plan. If not exempted, it is recommended that employers speak with employment counsel to discuss the pros and cons of enrolling in the Program or implementing their own qualifying retirement plan. Additionally, employers without a qualified retirement plan should consider whether implementing a qualified plan ahead of the applicable registration deadline is preferable, as mandatory contributions could burden lower-income employees. Full-time employees earning near minimum wage who do not opt out could see their take-home pay reduced by approximately $80 per month. Employers that intend to enroll in the Program should begin assembling the data and information required for enrollment and verify that their payroll providers possess the capabilities to make the necessary deductions and remit them to the Program’s Roth IRA provider.
*Cailin MacQuarrie is a pre-bar associate in Littler’s Long Island office.
