New York Launches Mandatory State-Run Retirement Program After Years of Delay

New York State has officially opened employer registration for the New York Secure Choice Savings Program, a state-run retirement initiative requiring many private-sector employers to facilitate Roth IRA savings for workers who lack access to an employer-sponsored retirement plan. Although New York enacted the Program in 2021 under General Business Law Article 43, implementation stalled for several years. The program is now live. Employers must now prepare for phased registration deadlines beginning March 2026.

This program places new compliance obligations on New York employers, especially those that do not currently sponsor a qualified plan, while expanding retirement savings access for millions of workers.

If you or your company need expert support with multi-state labor compliance, retirement plan obligations, or risk management, please contact the ILS legal team at contact@consultils.com. We provide precise and efficient solutions to help you navigate regulatory changes and mitigate employment-related risks with confidence.

Key Provisions

Mandatory Participation for Most Employers

Private-sector employers must enroll in the Program if they meet all of the following criteria:

• Have been in business at least two years;

• Employed 10 or more employees in New York during the prior calendar year; and

• Do not offer a qualified retirement plan (e.g., 401(k), 403(b), SEP, SIMPLE).

Employers that offer qualifying plans are exempt but must formally certify their exemption with the Secure Choice Savings Program Board (“the Board”).

There is no employer fee, and employers are not required to make contributions or matches. Employers bear no fiduciary responsibility for investment management or plan administration. Their role is strictly limited to facilitating payroll deductions and maintaining employee data. However, enrolled employees can expect to be charged fees by the Program, though specific fee structures have not been fully disclosed in official Program materials.

Automatic Enrollment for Employees

All employees aged 18 or older who earn taxable wages from a participating employer must be automatically enrolled unless they opt out.

Employee rights and requirements include:

• A 30-day window to opt out or customize contribution and investment choices

• Default 3% of gross wages contribution rate for employees who take no action

• Employer responsibility for payroll deductions and remittance of contributions

Employees can expect the following fees:

• $28 annual administrative fee ($7 quarterly), plus

• 0.22%–0.31% annual asset-based fee.

Registration Deadlines

The Board will notify employers when their registration window opens, but employers must follow these statutory deadlines:

• March 18, 2026 – Employers with 30+ employees

• May 15, 2026 – Employers with 15–29 employees

• July 15, 2026 – Employers with 10–14 employees

Employers offering qualified plans must also meet these deadlines for exemption certification

Impact on New York Employers

Mandatory Compliance for Non-Exempt Employers

Employers without qualified retirement plans must:

• Register with the Program

• Automatically enroll eligible employees

• Deduct and remit contributions every pay period

• Maintain required notices and employee communications

Failure to comply may expose employers to enforcement actions and statutory penalties once the Board finalizes procedural rules.

Administrative and Payroll System Adjustments

Employers must ensure that payroll providers can:

• Process automatic deductions at 3% or employee-selected rates

• Remit contributions to the Program’s Roth IRA custodian

• Manage opt-outs and mid-year changes

Companies relying on third-party payroll systems or PEOs should verify compliance capabilities well before the 2026 deadlines.

Practical and Employee-Relations Considerations

Mandatory contributions can meaningfully reduce take-home pay for low-wage employees.A full-time employee earning close to minimum wage may lose ~$80 per month if they do not opt out.

Employers may wish to evaluate whether implementing their own qualified retirement plan—rather than relying on Secure Choice—provides improved flexibility, reduced employee financial burden, or stronger recruitment benefits.

Recommended Actions for Employers

Determine Exemption Status

Confirm whether your organization:

• Has 10 or more New York employees, and

• Already offers a qualified retirement plan

Employers with existing plans must timely certify their exemption to avoid follow-up inquiries from the Board.

Evaluate Whether to Implement a Qualified Plan

Employers currently lacking retirement offerings should consult counsel to determine whether:

• Participating in Secure Choice is the optimal route; or

• Establishing a private-sector 401(k) plan provides better benefits, cost-efficiency, or administrative control.

Prepare Payroll Systems

Employers that will enroll in the Program should start preparing:

• Employee census data

• Payroll integration procedures

• Systems for tracking employee opt-outs, changes, and remittances

Plan Employee Communications

Develop written materials to explain:

• Automatic enrollment

• Contribution rates

• Opt-out procedures

• Fee structures

Clear communication will reduce confusion and minimize disruption in 2026.

New York’s Secure Choice Savings Program represents a significant shift in mandatory retirement savings facilitation for private-sector employers. Early preparation will reduce compliance risks, protect employer resources, and help employees navigate their savings obligations.

If you or your company need expert support with multi-state labor compliance, retirement plan obligations, or risk management, please contact the ILS legal team at contact@consultils.com. We provide precise and efficient solutions to help you navigate regulatory changes and mitigate employment-related risks with confidence.

Disclaimer: The materials provided on this website are for general informational purposes only and do not, and are not intended to, constitute legal advice. You should not act or refrain from acting based on any information provided here. Please consult with your own legal counsel regarding your specific situation and legal questions.

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As Managing Partner at ILS, Richard Liu ranks among the leading U.S. attorneys in corporate, employment, and regulatory law. He is known for crafting legal strategies aligned with clients’ business objectives and advising Fortune 500 companies, startups, and executives on corporate transactions, financing, privacy, and employment matters across the technology, healthcare, and financial sectors.

Before founding ILS, Richard practiced at top defense firms, where he developed a reputation for anticipating risks and designing strategies that balance protection with growth. He has secured favorable outcomes in contract and intellectual property disputes, represented clients in state and federal courts, and is recognized for combining large-firm expertise with boutique-firm agility. Richard is also a frequent speaker at industry and legal conferences.

Email: contact@consultils.com | Phone: 626-344-8949

Mandy Wang focuses her practice on commercial litigation, employment disputes, and regulatory compliance, providing legal and strategic guidance to U.S. companies and China-based enterprises operating in the United States.

Before joining ILS, Mandy worked at a boutique Bay Area law firm handling a wide range of civil matters, including business, employment, and real estate disputes, as well as select family law and criminal defense cases. She also served as a judicial law clerk at the Superior Court of California, San Mateo County, assisting judges with key motions, writs, and trial preparation. With bilingual proficiency in Mandarin and English and experience at an international law firm in China, Mandy approaches complex matters with precision, practicality, and strategic insight.

Email:  contact@consultils.com | Phone: 626-344-8949