New York state requires automatic enrollment of employees in the New York State Secure Choice Savings Program by employers that do not provide employer-sponsored retirement plan options. Lawmakers passed Senate Bill S5395A last October, and state officials have two years to facilitate the change. State officials met earlier this year to design and implement changes. New York state employers should familiarize themselves with details about the retirement savings plan and look out for regulations that may be issued.

In New York City, the Savings Access New York Retirement Program further covers employers. Enacted on May 11, 2021, New York City’s retirement program is similar to the state program. The key differences are that the city program has a default payroll deduction of 5%, which can be adjusted by the employee, and it applies to employers with five or more employees. The city has not yet implemented the program. However, New York state and city employers should prepare to provide retirement plan options for their employees.