|
Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
|---|---|
| Jun 13, 2016 |
print number 6045d |
| Jun 13, 2016 |
amend and recommit to finance |
| Jun 03, 2016 |
print number 6045c |
| Jun 03, 2016 |
amend and recommit to finance |
| May 23, 2016 |
reported and committed to finance |
| Apr 13, 2016 |
print number 6045b |
| Apr 13, 2016 |
amend and recommit to civil service and pensions |
| Jan 06, 2016 |
referred to civil service and pensions |
| Dec 21, 2015 |
print number 6045a |
| Dec 21, 2015 |
amend and recommit to rules |
| Sep 11, 2015 |
referred to rules |
Senate Bill S6045B
2015-2016 Legislative Session
Relates to enacting the New York state secure choice savings program act
download bill text pdfSponsored By
(D, IP) Senate District
Archive: Last Bill Status - In Senate Committee Finance Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Votes
Bill Amendments
2015-S6045 - Details
- Current Committee:
- Senate Finance
- Law Section:
- Retirement and Social Security Law
- Laws Affected:
- Add Art 14-C §§570 - 587, R & SS L; add §§99-aa & 99-bb, St Fin L
- Versions Introduced in 2017-2018 Legislative Session:
-
S4344
2015-S6045 - Summary
Creates a self-sufficient retirement savings program in the form of an automatic enrollment payroll deduction IRA, and establishes an administrative board responsible for promoting greater retirement savings for private sector employees in a convenient, low-cost, and transferable manner.
2015-S6045 - Sponsor Memo
BILL NUMBER:S6045
TITLE OF BILL: An act to amend the retirement and social security law
and the state finance law, in relation to enacting the New York state
secure choice savings program act
PURPOSE OR GENERAL IDEA OF BILL: The purpose of this is bill to create
a self-sufficient retirement savings program in the form of an
automatic enrollment payroll deduction IRA, and establish an
administrative board responsible for promoting greater retirement
savings for private sector employees in a convenient, low-cost, and
transferable manner.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 titles the Act the "New York State Secure Choice Savings
Program Act".
Section 2 amends the retirement and social security law to add a new
article, 14-C.
Section 570 defines terms: program established, composition of the
board, fiduciary duty, duties of the board, risk management,
investment firms, investment options, benefits, employer and employee
information packets and disclosure forms, program implementation and
enrollment, payments, duty and liability of the state, duty and
liability of participating employers, audit and reports, penalties, delayed implementation, and federal considerations. Section 571 establishes the New York State Secure Choice Savings Program, in the form of an automatic enrollment payroll deduction IRA, to administered by the New York Secure Choice Savings Board. Section 572 Establishes the New York state secure choice savings board, composed of five appointed members. Section 573 Outlines the fiduciary responsibilities and duties of the savings board. Section 574 Outlines the responsibilities and other duties of the savings board. Section 575 Requires the board to annually prepare and adopt a written statement outlining the provisions associated with risk management. Section 579 Provides for the creation and distribution of employer and employee information packets and disclosure forms. Section 580 Implements the New York state secure savings program within twenty four months after the effective date of this article. Section 582 Maintains that the state of New York shall have no duty or liability to any party for the payment of any retirement savings benefits accrued by any individual under the program. Section 584 Requires the board to submit annual financial reports and audits. Section 585 Enacts penalties for enrollment failure. Section 99-x Amends the state finance law to create the New York state secure choice savings program fund and the New York state secure choice administrative fund. JUSTIFICATION: According to a survey by the Bureau of Labor Statistics, 97% of privately owned establishments, employing 500 workers or more, offer retirement and health benefits. That percentage is halved when compared to establishments with less than 49 workers. Moreover, in 2014 President Barrack Obama suggested that states need to do more to provide workers with options to fund retirement plans due to congressional inaction. This legislation would provide employees of smaller establishment's access to retirement saving options. PRIOR LEGISLATIVE HISTORY: none FISCAL IMPLICATIONS: To Be Determined EFFECTIVE DATE: Immediately
2015-S6045 - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
6045
2015-2016 Regular Sessions
I N S E N A T E
September 11, 2015
___________
Introduced by Sen. SAVINO -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the retirement and social security law and the state
finance law, in relation to enacting the New York state secure choice
savings program act
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "New York state secure choice savings program act".
S 2. The retirement and social security law is amended by adding a new
article 14-C to read as follows:
ARTICLE 14-C
NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
SECTION 570. DEFINITIONS.
571. PROGRAM ESTABLISHED.
572. COMPOSITION OF THE BOARD.
573. FIDUCIARY DUTY.
574. DUTIES OF THE BOARD.
575. RISK MANAGEMENT.
576. INVESTMENT FIRMS.
577. INVESTMENT OPTIONS.
578. BENEFITS.
579. EMPLOYER AND EMPLOYEE INFORMATION PACKETS AND DISCLOSURE
FORMS.
580. PROGRAM IMPLEMENTATION AND ENROLLMENT.
581. PAYMENTS.
582. DUTY AND LIABILITY OF THE STATE.
583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS.
584. AUDIT AND REPORTS.
585. PENALTIES.
586. DELAYED IMPLEMENTATION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11645-01-5
S. 6045 2
587. FEDERAL CONSIDERATIONS.
S 570. DEFINITIONS. ALL TERMS SHALL HAVE THE SAME MEANING AS WHEN USED
IN A COMPARABLE CONTEXT IN THE INTERNAL REVENUE CODE. AS USED IN THIS
ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "BOARD" SHALL MEAN THE NEW YORK SECURE CHOICE SAVINGS BOARD ESTAB-
LISHED UNDER THIS ARTICLE.
2. "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF THE DEPARTMENT OF
TAXATION AND FINANCE.
2-A. "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF TAXATION AND FINANCE.
3. "EMPLOYEE" SHALL MEAN ANY INDIVIDUAL WHO IS EIGHTEEN YEARS OF AGE
OR OLDER, WHO IS EMPLOYED BY AN EMPLOYER, AND WHO HAS WAGES THAT ARE
ALLOCABLE TO NEW YORK STATE DURING A CALENDAR YEAR.
4. "EMPLOYER" SHALL MEAN A PERSON OR ENTITY ENGAGED IN A BUSINESS,
INDUSTRY, PROFESSION, TRADE, OR OTHER ENTERPRISE IN NEW YORK STATE,
WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT (I) HAS AT NO TIME DURING THE
PREVIOUS CALENDAR YEAR EMPLOYED FEWER THAN TWENTY-FIVE EMPLOYEES IN THE
STATE, (II) HAS BEEN IN BUSINESS AT LEAST TWO YEARS, AND (III) HAS NOT
OFFERED A QUALIFIED RETIREMENT PLAN, INCLUDING, BUT NOT LIMITED TO, A
PLAN QUALIFIED UNDER SECTIONS 401(A), 401(K), 403(A), 403(B), 408(K),
408(P) OR 457(B) OF THE INTERNAL REVENUE CODE OF 1986 IN THE PRECEDING
TWO YEARS.
5. "ENROLLEE" SHALL MEAN ANY EMPLOYER WHO IS ENROLLED IN THE PROGRAM.
6. "FUND" SHALL MEAN THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
FUND.
7. "INTERNAL REVENUE CODE" SHALL MEAN THE INTERNAL REVENUE CODE OF
1986, OR ANY SUCCESSOR LAW, IN EFFECT FOR THE CALENDAR YEAR.
8. "IRA" SHALL MEAN A ROTH IRA (INDIVIDUAL RETIREMENT ACCOUNT).
9. "PARTICIPATING EMPLOYER" SHALL MEAN AN EMPLOYER OR SMALL EMPLOYER
THAT PROVIDES A PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT AS
PROVIDED FOR BY THIS ARTICLE FOR ITS EMPLOYEES WHO ARE ENROLLEES IN THE
PROGRAM.
10. "PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT" SHALL MEAN AN
ARRANGEMENT BY WHICH A PARTICIPATING EMPLOYER ALLOWS ENROLLEES TO REMIT
PAYROLL DEDUCTION CONTRIBUTIONS TO THE PROGRAM.
11. "PROGRAM" SHALL MEAN THE NEW YORK STATE SECURE CHOICE SAVINGS
PROGRAM.
12. "SMALL EMPLOYER" SHALL MEAN A PERSON OR ENTITY ENGAGED IN A BUSI-
NESS, INDUSTRY, PROFESSION, TRADE, OR OTHER ENTERPRISE IN NEW YORK
STATE, WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT (I) EMPLOYED LESS THAN
TWENTY-FIVE EMPLOYEES AT ANY ONE TIME IN THE STATE THROUGHOUT THE PREVI-
OUS CALENDAR YEAR, OR (II) HAS BEEN IN BUSINESS LESS THAN TWO YEARS, OR
BOTH ITEMS (I) AND (II), BUT THAT NOTIFIES THE DEPARTMENT THAT IT IS
INTERESTED IN BEING A PARTICIPATING EMPLOYER.
13. "WAGES" MEANS ANY COMPENSATION WITHIN THE MEANING OF SECTION
219(F)(1) OF THE INTERNAL REVENUE CODE THAT IS RECEIVED BY AN ENROLLEE
FROM A PARTICIPATING EMPLOYER DURING THE CALENDAR YEAR.
S 571. PROGRAM ESTABLISHED. A RETIREMENT SAVINGS PROGRAM IN THE FORM
OF AN AUTOMATIC ENROLLMENT PAYROLL DEDUCTION IRA, KNOWN AS THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM, IS HEREBY ESTABLISHED AND SHALL BE
ADMINISTERED BY THE BOARD FOR THE PURPOSE OF PROMOTING GREATER RETIRE-
MENT SAVINGS FOR PRIVATE-SECTOR EMPLOYEES IN A CONVENIENT, LOW-COST, AND
PORTABLE MANNER.
S 572. COMPOSITION OF THE BOARD. THERE IS HEREBY CREATED THE NEW YORK
STATE SECURE CHOICE SAVINGS BOARD.
1. THE BOARD SHALL CONSIST OF THE FOLLOWING SIX MEMBERS:
S. 6045 3
(A) THE COMMISSIONER, OR HIS OR HER DESIGNEE, WHO SHALL SERVE AS
CHAIR;
(B) THE STATE COMPTROLLER, OR HIS OR HER DESIGNEE;
(C) TWO PUBLIC REPRESENTATIVES WITH EXPERTISE IN RETIREMENT SAVINGS
PLAN ADMINISTRATION OR INVESTMENT, OR BOTH, APPOINTED BY THE GOVERNOR;
(D) A REPRESENTATIVE OF PARTICIPATING EMPLOYERS, APPOINTED BY THE
GOVERNOR; AND
(E) A REPRESENTATIVE OF ENROLLEES, APPOINTED BY THE GOVERNOR.
2. MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION BUT MAY BE
REIMBURSED FOR NECESSARY TRAVEL EXPENSES INCURRED IN CONNECTION WITH
THEIR BOARD DUTIES FROM FUNDS APPROPRIATED FOR THE PURPOSE.
3. THE INITIAL APPOINTMENTS FOR THE GOVERNOR'S APPOINTEES SHALL BE AS
FOLLOWS: ONE PUBLIC REPRESENTATIVE FOR FOUR YEARS; ONE PUBLIC REPRESEN-
TATIVE FOR TWO YEARS; THE REPRESENTATIVE OF PARTICIPATING EMPLOYERS FOR
THREE YEARS; AND THE REPRESENTATIVE OF ENROLLEES FOR ONE YEAR. THEREAFT-
ER, ALL THE GOVERNOR'S APPOINTEES SHALL BE FOR TERMS OF FOUR YEARS.
4. A VACANCY IN THE TERM OF AN APPOINTED BOARD MEMBER SHALL BE FILLED
FOR THE BALANCE OF THE UNEXPIRED TERM IN THE SAME MANNER AS THE ORIGINAL
APPOINTMENT.
5. EACH APPOINTMENT BY THE GOVERNOR SHALL BE SUBJECT TO APPROVAL BY
THE COMMISSIONER, WHO, UPON APPROVAL, SHALL CERTIFY HIS OR HER APPROVAL
TO THE SECRETARY OF STATE.
S 573. FIDUCIARY DUTY. THE BOARD, THE INDIVIDUAL MEMBERS OF THE BOARD,
THE TRUSTEES, ANY OTHER AGENTS APPOINTED OR ENGAGED BY THE BOARD, AND
ALL PERSONS SERVING AS PROGRAM STAFF SHALL DISCHARGE THEIR DUTIES WITH
RESPECT TO THE PROGRAM SOLELY IN THE INTEREST OF THE PROGRAM'S ENROLLEES
AND BENEFICIARIES AS FOLLOWS:
1. FOR THE EXCLUSIVE PURPOSES OF PROVIDING BENEFITS TO ENROLLEES AND
BENEFICIARIES AND DEFRAYING REASONABLE EXPENSES OF ADMINISTERING THE
PROGRAM;
2. BY INVESTING WITH THE CARE, SKILL, PRUDENCE, AND DILIGENCE UNDER
THE PREVAILING CIRCUMSTANCES THAT A PRUDENT PERSON ACTING IN A LIKE
CAPACITY AND FAMILIAR WITH THOSE MATTERS WOULD USE IN THE CONDUCT OF AN
ENTERPRISE OF A LIKE CHARACTER AND WITH LIKE AIMS; AND
3. BY USING ANY CONTRIBUTIONS PAID BY EMPLOYEES AND EMPLOYERS INTO THE
TRUST EXCLUSIVELY FOR THE PURPOSE OF PAYING BENEFITS TO THE ENROLLEES OF
THE PROGRAM, FOR THE COST OF ADMINISTRATION OF THE PROGRAM, AND FOR
INVESTMENTS MADE FOR THE BENEFIT OF THE PROGRAM.
S 574. DUTIES OF THE BOARD. IN ADDITION TO THE OTHER DUTIES AND
RESPONSIBILITIES STATED IN THIS ARTICLE, THE BOARD SHALL:
1. CAUSE THE PROGRAM TO BE DESIGNED, ESTABLISHED AND OPERATED IN A
MANNER THAT:
(A) ACCORDS WITH BEST PRACTICES FOR RETIREMENT SAVINGS VEHICLES;
(B) MAXIMIZES PARTICIPATION, SAVINGS, AND SOUND INVESTMENT PRACTICES;
(C) MAXIMIZES SIMPLICITY, INCLUDING EASE OF ADMINISTRATION FOR PARTIC-
IPATING EMPLOYERS AND ENROLLEES;
(D) PROVIDES AN EFFICIENT PRODUCT TO ENROLLEES BY POOLING INVESTMENT
FUNDS;
(E) ENSURES THE PORTABILITY OF BENEFITS; AND
(F) PROVIDES FOR THE DEACCUMULATION OF ENROLLEE ASSETS IN A MANNER
THAT MAXIMIZES FINANCIAL SECURITY IN RETIREMENT.
2. APPOINT A TRUSTEE TO THE IRA FUND IN COMPLIANCE WITH SECTION 408 OF
THE INTERNAL REVENUE CODE.
3. EXPLORE AND ESTABLISH INVESTMENT OPTIONS, SUBJECT TO THIS ARTICLE,
THAT OFFER EMPLOYEES RETURNS ON CONTRIBUTIONS AND THE CONVERSION OF
S. 6045 4
INDIVIDUAL RETIREMENT SAVINGS ACCOUNT BALANCES TO SECURE RETIREMENT
INCOME WITHOUT INCURRING DEBT OR LIABILITIES TO THE STATE.
4. ESTABLISH THE PROCESS BY WHICH INTEREST, INVESTMENT EARNINGS, AND
INVESTMENT LOSSES ARE ALLOCATED TO INDIVIDUAL PROGRAM ACCOUNTS ON A PRO
RATA BASIS AND ARE COMPUTED AT THE INTEREST RATE ON THE BALANCE OF AN
INDIVIDUAL'S ACCOUNT.
5. MAKE AND ENTER INTO CONTRACTS NECESSARY FOR THE ADMINISTRATION OF
THE PROGRAM AND FUND, INCLUDING, BUT NOT LIMITED TO, RETAINING AND
CONTRACTING WITH INVESTMENT MANAGERS, PRIVATE FINANCIAL INSTITUTIONS,
OTHER FINANCIAL AND SERVICE PROVIDERS, CONSULTANTS, ACTUARIES, COUNSEL,
AUDITORS, THIRD-PARTY ADMINISTRATORS, AND OTHER PROFESSIONALS AS NECES-
SARY.
6. CONDUCT A REVIEW OF THE PERFORMANCE OF ANY INVESTMENT VENDORS EVERY
FOUR YEARS, INCLUDING, BUT NOT LIMITED TO, A REVIEW OF RETURNS, FEES,
AND CUSTOMER SERVICE. A COPY OF REVIEWS SHALL BE POSTED TO THE BOARD'S
INTERNET WEBSITE.
7. DETERMINE THE NUMBER AND DUTIES OF STAFF MEMBERS NEEDED TO ADMINIS-
TER THE PROGRAM AND ASSEMBLE SUCH A STAFF, INCLUDING, AS NEEDED, EMPLOY-
ING STAFF, APPOINTING A PROGRAM ADMINISTRATOR, AND ENTERING INTO
CONTRACTS WITH THE COMMISSIONER TO MAKE EMPLOYEES OF THE DEPARTMENT
AVAILABLE TO ADMINISTER THE PROGRAM.
8. CAUSE MONEYS IN THE FUND TO BE HELD AND INVESTED AS POOLED INVEST-
MENTS DESCRIBED IN THIS ARTICLE, WITH A VIEW TO ACHIEVING COST SAVINGS
THROUGH EFFICIENCIES AND ECONOMIES OF SCALE.
9. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN ENROLLEE IS ABLE TO
CONTRIBUTE A PORTION OF HIS OR HER WAGES TO THE PROGRAM FOR AUTOMATIC
DEPOSIT OF THOSE CONTRIBUTIONS AND THE PROCESS BY WHICH THE PARTICIPAT-
ING EMPLOYER PROVIDES A PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT
TO FORWARD THOSE CONTRIBUTIONS AND RELATED INFORMATION TO THE PROGRAM,
INCLUDING, BUT NOT LIMITED TO, CONTRACTING WITH FINANCIAL SERVICE COMPA-
NIES AND THIRD-PARTY ADMINISTRATORS WITH THE CAPABILITY TO RECEIVE AND
PROCESS EMPLOYEE INFORMATION AND CONTRIBUTIONS FOR PAYROLL DEPOSIT
RETIREMENT SAVINGS ARRANGEMENTS OR SIMILAR ARRANGEMENTS.
10. DESIGN AND ESTABLISH THE PROCESS FOR ENROLLMENT INCLUDING THE
PROCESS BY WHICH AN EMPLOYEE CAN OPT NOT TO PARTICIPATE IN THE PROGRAM,
SELECT A CONTRIBUTION LEVEL, SELECT AN INVESTMENT OPTION, AND TERMINATE
PARTICIPATION IN THE PROGRAM.
11. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN INDIVIDUAL MAY
VOLUNTARILY ENROLL IN AND MAKE CONTRIBUTIONS TO THE PROGRAM.
12. ACCEPT ANY GRANTS, APPROPRIATIONS, OR OTHER MONEYS FROM THE STATE,
ANY UNIT OF FEDERAL, STATE, OR LOCAL GOVERNMENT, OR ANY OTHER PERSON,
FIRM, PARTNERSHIP, OR CORPORATION SOLELY FOR DEPOSIT INTO THE FUND,
WHETHER FOR INVESTMENT OR ADMINISTRATIVE PURPOSES.
13. EVALUATE THE NEED FOR, AND PROCURE AS NEEDED, INSURANCE AGAINST
ANY AND ALL LOSS IN CONNECTION WITH THE PROPERTY, ASSETS, OR ACTIVITIES
OF THE PROGRAM, AND INDEMNIFY AS NEEDED EACH MEMBER OF THE BOARD FROM
PERSONAL LOSS OR LIABILITY RESULTING FROM A MEMBER'S ACTION OR INACTION
AS A MEMBER OF THE BOARD.
14. MAKE PROVISIONS FOR THE PAYMENT OF ADMINISTRATIVE COSTS AND
EXPENSES FOR THE CREATION, MANAGEMENT, AND OPERATION OF THE PROGRAM.
SUBJECT TO APPROPRIATION, THE STATE MAY PAY ADMINISTRATIVE COSTS ASSOCI-
ATED WITH THE CREATION AND MANAGEMENT OF THE PROGRAM UNTIL SUFFICIENT
ASSETS ARE AVAILABLE IN THE FUND FOR THAT PURPOSE. THEREAFTER, ALL
ADMINISTRATIVE COSTS OF THE FUND, INCLUDING REPAYMENT OF ANY START-UP
FUNDS PROVIDED BY THE STATE, SHALL BE PAID ONLY OUT OF MONEYS ON DEPOSIT
THEREIN. HOWEVER, PRIVATE FUNDS OR FEDERAL FUNDING RECEIVED IN ORDER TO
S. 6045 5
IMPLEMENT THE PROGRAM UNTIL THE FUND IS SELF-SUSTAINING SHALL NOT BE
REPAID UNLESS THOSE FUNDS WERE OFFERED CONTINGENT UPON THE PROMISE OF
SUCH REPAYMENT. THE BOARD SHALL KEEP ANNUAL ADMINISTRATIVE EXPENSES AS
LOW AS POSSIBLE, BUT IN NO EVENT SHALL THEY EXCEED 0.75% OF THE TOTAL
TRUST BALANCE.
15. ALLOCATE ADMINISTRATIVE FEES TO INDIVIDUAL RETIREMENT ACCOUNTS IN
THE PROGRAM ON A PRO RATA BASIS.
16. SET MINIMUM AND MAXIMUM CONTRIBUTION LEVELS IN ACCORDANCE WITH
LIMITS ESTABLISHED FOR IRAS BY THE INTERNAL REVENUE CODE.
17. FACILITATE EDUCATION AND OUTREACH TO EMPLOYERS AND EMPLOYEES.
18. FACILITATE COMPLIANCE BY THE PROGRAM WITH ALL APPLICABLE REQUIRE-
MENTS FOR THE PROGRAM UNDER THE INTERNAL REVENUE CODE, INCLUDING TAX
QUALIFICATION REQUIREMENTS OR ANY OTHER APPLICABLE LAW AND ACCOUNTING
REQUIREMENTS.
19. CARRY OUT THE DUTIES AND OBLIGATIONS OF THE PROGRAM IN AN EFFEC-
TIVE, EFFICIENT, AND LOW-COST MANNER.
20. EXERCISE ANY AND ALL OTHER POWERS REASONABLY NECESSARY FOR THE
EFFECTUATION OF THE PURPOSES, OBJECTIVES, AND PROVISIONS OF THIS ARTICLE
PERTAINING TO THE PROGRAM.
21. DEPOSIT INTO THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND
ALL GRANTS, GIFTS, DONATIONS, FEES, AND EARNINGS FROM INVESTMENTS FROM
THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND THAT ARE USED TO
RECOVER ADMINISTRATIVE COSTS. ALL EXPENSES OF THE BOARD SHALL BE PAID
FROM THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND.
S 575. RISK MANAGEMENT. THE BOARD SHALL ANNUALLY PREPARE AND ADOPT A
WRITTEN STATEMENT OF INVESTMENT POLICY THAT INCLUDES A RISK MANAGEMENT
AND OVERSIGHT PROGRAM. THIS INVESTMENT POLICY SHALL PROHIBIT THE BOARD,
PROGRAM, AND FUND FROM BORROWING FOR INVESTMENT PURPOSES. THE RISK
MANAGEMENT AND OVERSIGHT PROGRAM SHALL BE DESIGNED TO ENSURE THAT AN
EFFECTIVE RISK MANAGEMENT SYSTEM IS IN PLACE TO MONITOR THE RISK LEVELS
OF THE PROGRAM AND FUND PORTFOLIO, TO ENSURE THAT THE RISKS TAKEN ARE
PRUDENT AND PROPERLY MANAGED, TO PROVIDE AN INTEGRATED PROCESS FOR OVER-
ALL RISK MANAGEMENT, AND TO ASSESS INVESTMENT RETURNS AS WELL AS RISK TO
DETERMINE IF THE RISKS TAKEN ARE ADEQUATELY COMPENSATED COMPARED TO
APPLICABLE PERFORMANCE BENCHMARKS AND STANDARDS. THE BOARD SHALL CONSID-
ER THE STATEMENT OF INVESTMENT POLICY AND ANY CHANGES IN THE INVESTMENT
POLICY AT A PUBLIC HEARING.
S 576. INVESTMENT FIRMS. 1. THE BOARD SHALL ENGAGE, AFTER AN OPEN BID
PROCESS, AN INVESTMENT MANAGER OR MANAGERS TO INVEST THE FUND AND ANY
OTHER ASSETS OF THE PROGRAM. MONEYS IN THE FUND MAY BE INVESTED OR REIN-
VESTED BY THE COMMISSIONER OR MAY BE INVESTED IN WHOLE OR IN PART. IN
SELECTING THE INVESTMENT MANAGER OR MANAGERS, THE BOARD SHALL TAKE INTO
CONSIDERATION AND GIVE WEIGHT TO THE INVESTMENT MANAGER'S FEES AND
CHARGES IN ORDER TO REDUCE THE PROGRAM'S ADMINISTRATIVE EXPENSES.
2. THE INVESTMENT MANAGER OR MANAGERS SHALL COMPLY WITH ANY AND ALL
APPLICABLE FEDERAL AND STATE LAWS, RULES, AND REGULATIONS, AS WELL AS
ANY AND ALL RULES, POLICIES, AND GUIDELINES PROMULGATED BY THE BOARD
WITH RESPECT TO THE PROGRAM AND THE INVESTMENT OF THE FUND, INCLUDING,
BUT NOT LIMITED TO, THE INVESTMENT POLICY.
3. THE INVESTMENT MANAGER OR MANAGERS SHALL PROVIDE SUCH REPORTS AS
THE BOARD DEEMS NECESSARY FOR THE BOARD TO OVERSEE EACH INVESTMENT
MANAGER'S PERFORMANCE AND THE PERFORMANCE OF THE FUND.
S 577. INVESTMENT OPTIONS. 1. THE BOARD SHALL ESTABLISH AS AN INVEST-
MENT OPTION A LIFE-CYCLE FUND WITH A TARGET DATE BASED UPON THE AGE OF
THE ENROLLEE. THIS SHALL BE THE DEFAULT INVESTMENT OPTION FOR ENROLLEES
S. 6045 6
WHO FAIL TO ELECT AN INVESTMENT OPTION UNLESS AND UNTIL THE BOARD DESIG-
NATES BY RULE A NEW INVESTMENT OPTION AS THE DEFAULT.
2. THE BOARD MAY ALSO ESTABLISH ANY OR ALL OF THE FOLLOWING ADDITIONAL
INVESTMENT OPTIONS:
(A) A CONSERVATIVE PRINCIPAL PROTECTION FUND;
(B) A GROWTH FUND;
(C) A SECURE RETURN FUND WHOSE PRIMARY OBJECTIVE IS THE PRESERVATION
OF THE SAFETY OF PRINCIPAL AND THE PROVISION OF A STABLE AND LOW-RISK
RATE OF RETURN; IF THE BOARD ELECTS TO ESTABLISH A SECURE RETURN FUND,
THE BOARD MAY PROCURE ANY INSURANCE, ANNUITY, OR OTHER PRODUCT TO INSURE
THE VALUE OF INDIVIDUALS' ACCOUNTS AND GUARANTEE A RATE OF RETURN; THE
COST OF SUCH FUNDING MECHANISM SHALL BE PAID OUT OF THE FUND; UNDER NO
CIRCUMSTANCES SHALL THE BOARD, PROGRAM, FUND, THE STATE, OR ANY PARTIC-
IPATING EMPLOYER ASSUME ANY LIABILITY FOR INVESTMENT OR ACTUARIAL RISK;
THE BOARD SHALL DETERMINE WHETHER TO ESTABLISH SUCH INVESTMENT OPTIONS
BASED UPON AN ANALYSIS OF THEIR COST, RISK PROFILE, BENEFIT LEVEL,
FEASIBILITY, AND EASE OF IMPLEMENTATION; OR
(D) AN ANNUITY FUND.
3. IF THE BOARD ELECTS TO ESTABLISH A SECURE RETURN FUND, THE BOARD
SHALL THEN DETERMINE WHETHER SUCH OPTION SHALL REPLACE THE TARGET DATE
OR LIFE-CYCLE FUND AS THE DEFAULT INVESTMENT OPTION FOR ENROLLEES WHO DO
NOT ELECT AN INVESTMENT OPTION. IN MAKING SUCH DETERMINATION, THE BOARD
SHALL CONSIDER THE COST, RISK PROFILE, BENEFIT LEVEL, AND EASE OF
ENROLLMENT IN THE SECURE RETURN FUND. THE BOARD MAY AT ANY TIME THERE-
AFTER REVISIT THIS QUESTION AND, BASED UPON AN ANALYSIS OF THESE CRITE-
RIA, ESTABLISH EITHER THE SECURE RETURN FUND OR THE LIFE-CYCLE FUND AS
THE DEFAULT FOR ENROLLEES WHO DO NOT ELECT AN INVESTMENT OPTION.
S 578. BENEFITS. INTEREST, INVESTMENT EARNINGS, AND INVESTMENT LOSSES
SHALL BE ALLOCATED TO INDIVIDUAL PROGRAM ACCOUNTS AS ESTABLISHED BY THE
BOARD PURSUANT TO THIS ARTICLE. AN INDIVIDUAL'S RETIREMENT SAVINGS BENE-
FIT UNDER THE PROGRAM SHALL BE AN AMOUNT EQUAL TO THE BALANCE IN THE
INDIVIDUAL'S PROGRAM ACCOUNT ON THE DATE THE RETIREMENT SAVINGS BENEFIT
BECOMES PAYABLE. THE STATE SHALL HAVE NO LIABILITY FOR THE PAYMENT OF
ANY BENEFIT TO ANY PARTICIPANT IN THE PROGRAM.
S 579. EMPLOYER AND EMPLOYEE INFORMATION PACKETS AND DISCLOSURE FORMS.
1. PRIOR TO THE OPENING OF THE PROGRAM FOR ENROLLMENT, THE BOARD SHALL
DESIGN AND DISSEMINATE TO ALL EMPLOYERS AN EMPLOYER INFORMATION PACKET
AND AN EMPLOYEE INFORMATION PACKET, WHICH SHALL INCLUDE BACKGROUND
INFORMATION ON THE PROGRAM, APPROPRIATE DISCLOSURES FOR EMPLOYEES, AND
INFORMATION REGARDING THE VENDOR INTERNET WEBSITE DESCRIBED.
2. THE BOARD SHALL PROVIDE FOR THE CONTENTS OF BOTH THE EMPLOYEE
INFORMATION PACKET AND THE EMPLOYER INFORMATION PACKET.
3. THE EMPLOYEE INFORMATION PACKET SHALL INCLUDE A DISCLOSURE FORM.
THE DISCLOSURE FORM SHALL EXPLAIN, BUT NOT BE LIMITED TO, ALL OF THE
FOLLOWING:
(A) THE BENEFITS AND RISKS ASSOCIATED WITH MAKING CONTRIBUTIONS TO THE
PROGRAM;
(B) THE MECHANICS OF HOW TO MAKE CONTRIBUTIONS TO THE PROGRAM;
(C) HOW TO OPT OUT OF THE PROGRAM;
(D) HOW TO PARTICIPATE IN THE PROGRAM WITH A LEVEL OF EMPLOYEE
CONTRIBUTIONS OTHER THAN THREE PERCENT;
(E) THE PROCESS FOR WITHDRAWAL OF RETIREMENT SAVINGS;
(F) HOW TO OBTAIN ADDITIONAL INFORMATION ABOUT THE PROGRAM;
(G) THAT EMPLOYEES SEEKING FINANCIAL ADVICE SHOULD CONTACT FINANCIAL
ADVISORS, THAT PARTICIPATING EMPLOYERS ARE NOT IN A POSITION TO PROVIDE
S. 6045 7
FINANCIAL ADVICE, AND THAT PARTICIPATING EMPLOYERS ARE NOT LIABLE FOR
DECISIONS EMPLOYEES MAKE PURSUANT TO THIS ARTICLE;
(H) THAT THE PROGRAM IS NOT AN EMPLOYER-SPONSORED RETIREMENT PLAN; AND
(I) THAT THE PROGRAM FUND IS NOT GUARANTEED BY THE STATE.
4. THE EMPLOYEE INFORMATION PACKET SHALL ALSO INCLUDE A FORM FOR AN
EMPLOYEE TO NOTE HIS OR HER DECISION TO OPT OUT OF PARTICIPATION IN THE
PROGRAM OR ELECT TO PARTICIPATE WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS
OTHER THAN THREE PERCENT.
5. PARTICIPATING EMPLOYERS SHALL SUPPLY THE EMPLOYEE INFORMATION PACK-
ET TO EMPLOYEES UPON LAUNCH OF THE PROGRAM. PARTICIPATING EMPLOYERS
SHALL SUPPLY THE EMPLOYEE INFORMATION PACKET TO NEW EMPLOYEES AT THE
TIME OF HIRING, AND NEW EMPLOYEES MAY OPT OUT OF PARTICIPATION IN THE
PROGRAM OR ELECT TO PARTICIPATE WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS
OTHER THAN THREE PERCENT AT THAT TIME.
S 580. PROGRAM IMPLEMENTATION AND ENROLLMENT. EXCEPT AS OTHERWISE
PROVIDED IN THIS ARTICLE, THE PROGRAM SHALL BE IMPLEMENTED, AND ENROLL-
MENT OF EMPLOYEES SHALL BEGIN, WITHIN TWENTY-FOUR MONTHS AFTER THE
EFFECTIVE DATE OF THIS ARTICLE. THE PROVISIONS OF THIS SECTION SHALL BE
IN FORCE AFTER THE BOARD OPENS THE PROGRAM FOR ENROLLMENT.
1. EACH EMPLOYER SHALL ESTABLISH A PAYROLL DEPOSIT RETIREMENT SAVINGS
ARRANGEMENT TO ALLOW EACH EMPLOYEE TO PARTICIPATE IN THE PROGRAM AT MOST
NINE MONTHS AFTER THE BOARD OPENS THE PROGRAM FOR ENROLLMENT.
2. EMPLOYERS SHALL AUTOMATICALLY ENROLL IN THE PROGRAM EACH OF THEIR
EMPLOYEES WHO HAS NOT OPTED OUT OF PARTICIPATION IN THE PROGRAM USING
THE FORM DESCRIBED IN THIS ARTICLE AND SHALL PROVIDE PAYROLL DEDUCTION
RETIREMENT SAVINGS ARRANGEMENTS FOR SUCH EMPLOYEES AND DEPOSIT, ON
BEHALF OF SUCH EMPLOYEES, THESE FUNDS INTO THE PROGRAM. SMALL EMPLOYERS
MAY, BUT ARE NOT REQUIRED TO, PROVIDE PAYROLL DEDUCTION RETIREMENT
SAVINGS ARRANGEMENTS FOR EACH EMPLOYEE WHO ELECTS TO PARTICIPATE IN THE
PROGRAM.
3. ENROLLEES SHALL HAVE THE ABILITY TO SELECT A CONTRIBUTION LEVEL
INTO THE FUND. THIS LEVEL MAY BE EXPRESSED AS A PERCENTAGE OF WAGES OR
AS A DOLLAR AMOUNT UP TO THE DEDUCTIBLE AMOUNT FOR THE ENROLLEE'S TAXA-
BLE YEAR UNDER SECTION 219(B)(1)(A) OF THE INTERNAL REVENUE CODE. ENROL-
LEES MAY CHANGE THEIR CONTRIBUTION LEVEL AT ANY TIME, SUBJECT TO RULES
PROMULGATED BY THE BOARD. IF AN ENROLLEE FAILS TO SELECT A CONTRIBUTION
LEVEL USING THE FORM DESCRIBED IN THIS ARTICLE, THEN HE OR SHE SHALL
CONTRIBUTE THREE PERCENT OF HIS OR HER WAGES TO THE PROGRAM, PROVIDED
THAT SUCH CONTRIBUTIONS SHALL NOT CAUSE THE ENROLLEE'S TOTAL CONTRIB-
UTIONS TO IRAS FOR THE YEAR TO EXCEED THE DEDUCTIBLE AMOUNT FOR THE
ENROLLEE'S TAXABLE YEAR UNDER SECTION 219(B)(1)(A) OF THE INTERNAL
REVENUE CODE.
4. ENROLLEES MAY SELECT AN INVESTMENT OPTION FROM THE PERMITTED
INVESTMENT OPTIONS LISTED IN THIS ARTICLE. ENROLLEES MAY CHANGE THEIR
INVESTMENT OPTION AT ANY TIME, SUBJECT TO RULES PROMULGATED BY THE
BOARD. IN THE EVENT THAT AN ENROLLEE FAILS TO SELECT AN INVESTMENT
OPTION, THAT ENROLLEE SHALL BE PLACED IN THE INVESTMENT OPTION SELECTED
BY THE BOARD AS THE DEFAULT UNDER THIS ARTICLE. IF THE BOARD HAS NOT
SELECTED A DEFAULT INVESTMENT OPTION UNDER THIS ARTICLE, THEN AN ENROL-
LEE WHO FAILS TO SELECT AN INVESTMENT OPTION SHALL BE PLACED IN THE
LIFE-CYCLE FUND INVESTMENT OPTION.
5. FOLLOWING INITIAL IMPLEMENTATION OF THE PROGRAM PURSUANT TO THIS
SECTION, AT LEAST ONCE EVERY YEAR, PARTICIPATING EMPLOYERS SHALL DESIG-
NATE AN OPEN ENROLLMENT PERIOD DURING WHICH EMPLOYEES WHO PREVIOUSLY
OPTED OUT OF THE PROGRAM MAY ENROLL IN THE PROGRAM.
S. 6045 8
6. AN EMPLOYEE WHO OPTS OUT OF THE PROGRAM WHO SUBSEQUENTLY WANTS TO
PARTICIPATE THROUGH THE PARTICIPATING EMPLOYER'S PAYROLL DEPOSIT RETIRE-
MENT SAVINGS ARRANGEMENT MAY ONLY ENROLL DURING THE PARTICIPATING
EMPLOYER'S DESIGNATED OPEN ENROLLMENT PERIOD OR IF PERMITTED BY THE
PARTICIPATING EMPLOYER AT AN EARLIER TIME.
7. EMPLOYERS SHALL RETAIN THE OPTION AT ALL TIMES TO SET UP ANY TYPE
OF EMPLOYER-SPONSORED RETIREMENT PLAN OR TO OFFER AN AUTOMATIC ENROLL-
MENT PAYROLL DEDUCTION IRA, INSTEAD OF HAVING A PAYROLL DEPOSIT RETIRE-
MENT SAVINGS ARRANGEMENT TO ALLOW EMPLOYEE PARTICIPATION IN THE PROGRAM.
8. AN EMPLOYEE MAY TERMINATE HIS OR HER PARTICIPATION IN THE PROGRAM
AT ANY TIME IN A MANNER PRESCRIBED BY THE BOARD.
9. THE BOARD SHALL ESTABLISH AND MAINTAIN AN INTERNET WEBSITE DESIGNED
TO ASSIST EMPLOYERS IN IDENTIFYING PRIVATE SECTOR PROVIDERS OF RETIRE-
MENT ARRANGEMENTS THAT CAN BE SET UP BY THE EMPLOYER RATHER THAN ALLOW-
ING EMPLOYEE PARTICIPATION IN THE PROGRAM UNDER THIS ARTICLE; HOWEVER,
THE BOARD SHALL ONLY ESTABLISH AND MAINTAIN AN INTERNET WEBSITE UNDER
THIS SUBSECTION IF THERE IS SUFFICIENT INTEREST IN SUCH AN INTERNET
WEBSITE BY PRIVATE SECTOR PROVIDERS AND IF THE PRIVATE SECTOR PROVIDERS
FURNISH THE FUNDING NECESSARY TO ESTABLISH AND MAINTAIN THE INTERNET
WEBSITE. THE BOARD MUST PROVIDE PUBLIC NOTICE OF THE AVAILABILITY OF AND
THE PROCESS FOR INCLUSION ON THE INTERNET WEBSITE BEFORE IT BECOMES
PUBLICLY AVAILABLE. THIS INTERNET WEBSITE MUST BE AVAILABLE TO THE
PUBLIC BEFORE THE BOARD OPENS THE PROGRAM FOR ENROLLMENT, AND THE INTER-
NET WEBSITE ADDRESS MUST BE INCLUDED ON ANY INTERNET WEBSITE POSTING OR
OTHER MATERIALS REGARDING THE PROGRAM OFFERED TO THE PUBLIC BY THE
BOARD.
S 581. PAYMENTS. EMPLOYEE CONTRIBUTIONS DEDUCTED BY THE PARTICIPATING
EMPLOYER THROUGH PAYROLL DEDUCTION SHALL BE PAID BY THE PARTICIPATING
EMPLOYER TO THE FUND USING ONE OR MORE PAYROLL DEPOSIT RETIREMENT
SAVINGS ARRANGEMENTS ESTABLISHED BY THE BOARD UNDER THIS ARTICLE,
EITHER:
1. ON OR BEFORE THE LAST DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH
THE COMPENSATION OTHERWISE WOULD HAVE BEEN PAYABLE TO THE EMPLOYEE IN
CASH; OR
2. BEFORE SUCH LATER DEADLINE PRESCRIBED BY THE BOARD FOR MAKING SUCH
PAYMENTS, BUT NOT LATER THAN THE DUE DATE FOR THE DEPOSIT OF TAX
REQUIRED TO BE DEDUCTED AND WITHHELD RELATING TO COLLECTION OF INCOME
TAX AT SOURCE ON WAGES OR FOR THE DEPOSIT OF TAX REQUIRED TO BE PAID
UNDER THE UNEMPLOYMENT INSURANCE SYSTEM FOR THE PAYROLL PERIOD TO WHICH
SUCH PAYMENTS RELATE.
S 582. DUTY AND LIABILITY OF THE STATE. 1. THE STATE SHALL HAVE NO
DUTY OR LIABILITY TO ANY PARTY FOR THE PAYMENT OF ANY RETIREMENT SAVINGS
BENEFITS ACCRUED BY ANY INDIVIDUAL UNDER THE PROGRAM. ANY FINANCIAL
LIABILITY FOR THE PAYMENT OF RETIREMENT SAVINGS BENEFITS IN EXCESS OF
FUNDS AVAILABLE UNDER THE PROGRAM SHALL BE BORNE SOLELY BY THE ENTITIES
WITH WHOM THE BOARD CONTRACTS TO PROVIDE INSURANCE TO PROTECT THE VALUE
OF THE PROGRAM.
2. NO STATE BOARD, COMMISSION, OR AGENCY, OR ANY OFFICER, EMPLOYEE, OR
MEMBER THEREOF IS LIABLE FOR ANY LOSS OR DEFICIENCY RESULTING FROM
PARTICULAR INVESTMENTS SELECTED UNDER THIS ARTICLE, EXCEPT FOR ANY
LIABILITY THAT ARISES OUT OF A BREACH OF FIDUCIARY DUTY.
S 583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS. 1. PARTICIPAT-
ING EMPLOYERS SHALL NOT HAVE ANY LIABILITY FOR AN EMPLOYEE'S DECISION TO
PARTICIPATE IN, OR OPT OUT OF, THE PROGRAM OR FOR THE INVESTMENT DECI-
SIONS OF THE BOARD OR OF ANY ENROLLEE.
S. 6045 9
2. A PARTICIPATING EMPLOYER SHALL NOT BE A FIDUCIARY, OR CONSIDERED TO
BE A FIDUCIARY, OVER THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT
BEAR RESPONSIBILITY FOR THE ADMINISTRATION, INVESTMENT, OR INVESTMENT
PERFORMANCE OF THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT BE LIABLE
WITH REGARD TO INVESTMENT RETURNS, PROGRAM DESIGN, AND BENEFITS PAID TO
PROGRAM PARTICIPANTS.
S 584. AUDIT AND REPORTS. 1. THE BOARD SHALL ANNUALLY SUBMIT:
(A) AN AUDITED FINANCIAL REPORT, PREPARED IN ACCORDANCE WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES, ON THE OPERATIONS OF THE PROGRAM DURING
EACH CALENDAR YEAR BY JULY FIRST OF THE FOLLOWING YEAR TO THE GOVERNOR,
THE COMPTROLLER, THE COMMISSIONER AND THE SENATE AND ASSEMBLY; AND
(B) A REPORT PREPARED BY THE BOARD, WHICH SHALL INCLUDE, BUT IS NOT
LIMITED TO, A SUMMARY OF THE BENEFITS PROVIDED BY THE PROGRAM, INCLUDING
THE NUMBER OF ENROLLEES IN THE PROGRAM, THE PERCENTAGE AND AMOUNTS OF
INVESTMENT OPTIONS AND RATES OF RETURN, AND SUCH OTHER INFORMATION THAT
IS RELEVANT TO MAKE A FULL, FAIR, AND EFFECTIVE DISCLOSURE OF THE OPER-
ATIONS OF THE PROGRAM AND THE FUND. THE ANNUAL AUDIT SHALL BE MADE BY AN
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT AND SHALL INCLUDE, BUT IS NOT
LIMITED TO, DIRECT AND INDIRECT COSTS ATTRIBUTABLE TO THE USE OF OUTSIDE
CONSULTANTS, INDEPENDENT CONTRACTORS, AND ANY OTHER PERSONS WHO ARE NOT
STATE EMPLOYEES FOR THE ADMINISTRATION OF THE PROGRAM.
2. IN ADDITION TO ANY OTHER STATEMENTS OR REPORTS REQUIRED BY LAW, THE
BOARD SHALL PROVIDE PERIODIC REPORTS AT LEAST ANNUALLY TO PARTICIPATING
EMPLOYERS, REPORTING THE NAMES OF EACH ENROLLEE EMPLOYED BY THE PARTIC-
IPATING EMPLOYER AND THE AMOUNTS OF CONTRIBUTIONS MADE BY THE PARTIC-
IPATING EMPLOYER ON BEHALF OF EACH EMPLOYEE DURING THE REPORTING PERIOD,
AS WELL AS TO ENROLLEES, REPORTING CONTRIBUTIONS AND INVESTMENT INCOME
ALLOCATED TO, WITHDRAWALS FROM, AND BALANCES IN THEIR PROGRAM ACCOUNTS
FOR THE REPORTING PERIOD. SUCH REPORTS MAY INCLUDE ANY OTHER INFORMATION
REGARDING THE PROGRAM AS THE BOARD MAY DETERMINE.
S 585. PENALTIES. 1. AN EMPLOYER WHO FAILS WITHOUT REASONABLE CAUSE TO
ENROLL AN EMPLOYEE IN THE PROGRAM WITHIN THE TIME PRESCRIBED UNDER THIS
ARTICLE SHALL BE SUBJECT TO A PENALTY EQUAL TO:
(A) TWO HUNDRED FIFTY DOLLARS FOR EACH EMPLOYEE FOR EACH CALENDAR YEAR
OR PORTION OF A CALENDAR YEAR DURING WHICH THE EMPLOYEE NEITHER WAS
ENROLLED IN THE PROGRAM NOR HAD ELECTED OUT OF PARTICIPATION IN THE
PROGRAM; OR
(B) FOR EACH CALENDAR YEAR BEGINNING AFTER THE DATE A PENALTY HAS BEEN
ASSESSED WITH RESPECT TO AN EMPLOYEE, FIVE HUNDRED DOLLARS FOR ANY
PORTION OF THAT CALENDAR YEAR DURING WHICH SUCH EMPLOYEE CONTINUES TO BE
UNENROLLED WITHOUT ELECTING OUT OF PARTICIPATION IN THE PROGRAM.
2. AFTER DETERMINING THAT AN EMPLOYER IS SUBJECT TO PENALTY UNDER THIS
SECTION FOR A CALENDAR YEAR, THE DEPARTMENT SHALL ISSUE A NOTICE OF
PROPOSED ASSESSMENT TO SUCH EMPLOYER, STATING THE NUMBER OF EMPLOYEES
FOR WHICH THE PENALTY IS PROPOSED UNDER THIS SECTION AND THE NUMBER OF
EMPLOYEES FOR WHICH THE PENALTY IS PROPOSED UNDER THIS SECTION FOR SUCH
CALENDAR YEAR, AND THE TOTAL AMOUNT OF PENALTIES PROPOSED. UPON THE
EXPIRATION OF NINETY DAYS AFTER THE DATE ON WHICH A NOTICE OF PROPOSED
ASSESSMENT WAS ISSUED, THE PENALTIES SPECIFIED THEREIN SHALL BE DEEMED
ASSESSED, UNLESS THE EMPLOYER HAD FILED A PROTEST WITH THE DEPARTMENT
UNDER THIS SECTION. IF, WITHIN NINETY DAYS AFTER THE DATE ON WHICH IT
WAS ISSUED, A PROTEST OF A NOTICE OF PROPOSED ASSESSMENT IS FILED UNDER
THIS SECTION, THE PENALTIES SPECIFIED THEREIN SHALL BE DEEMED ASSESSED
UPON THE DATE WHEN THE DECISION OF THE DEPARTMENT WITH RESPECT TO THE
PROTEST BECOMES FINAL.
S. 6045 10
3. A WRITTEN PROTEST AGAINST THE PROPOSED ASSESSMENT SHALL BE FILED
WITH THE DEPARTMENT IN SUCH FORM AS THE DEPARTMENT MAY BY RULE
PRESCRIBE, SETTING FORTH THE GROUNDS ON WHICH SUCH PROTEST IS BASED. IF
SUCH A PROTEST IS FILED WITHIN NINETY DAYS AFTER THE DATE THE NOTICE OF
PROPOSED ASSESSMENT IS ISSUED, THE DEPARTMENT SHALL RECONSIDER THE
PROPOSED ASSESSMENT AND SHALL GRANT THE EMPLOYER A HEARING. AS SOON AS
PRACTICABLE AFTER SUCH RECONSIDERATION AND HEARING, THE DEPARTMENT SHALL
ISSUE A NOTICE OF DECISION TO THE EMPLOYER, SETTING FORTH THE DEPART-
MENT'S FINDINGS OF FACT AND THE BASIS OF DECISION. THE DECISION OF THE
DEPARTMENT SHALL BECOME FINAL:
(A) IF NO ACTION FOR REVIEW OF THE DECISION IS COMMENCED, ON THE DATE
ON WHICH THE TIME FOR COMMENCEMENT OF SUCH REVIEW HAS EXPIRED; OR
(B) IF A TIMELY ACTION FOR REVIEW OF THE DECISION IS COMMENCED, ON THE
DATE ALL PROCEEDINGS IN COURT FOR THE REVIEW OF SUCH ASSESSMENT HAVE
TERMINATED OR THE TIME FOR THE TAKING THEREOF HAS EXPIRED WITHOUT SUCH
PROCEEDINGS BEING INSTITUTED.
4. AS SOON AS PRACTICABLE AFTER THE PENALTIES SPECIFIED IN A NOTICE OF
PROPOSED ASSESSMENT ARE DEEMED ASSESSED, THE DEPARTMENT SHALL GIVE
NOTICE TO THE EMPLOYER LIABLE FOR ANY UNPAID PORTION OF SUCH ASSESSMENT,
STATING THE AMOUNT DUE AND DEMANDING PAYMENT. IF AN EMPLOYER NEGLECTS OR
REFUSES TO PAY THE ENTIRE LIABILITY SHOWN ON THE NOTICE AND DEMAND WITH-
IN TEN DAYS AFTER THE NOTICE AND DEMAND IS ISSUED, THE UNPAID AMOUNT OF
THE LIABILITY SHALL BE A LIEN IN FAVOR OF THE STATE UPON ALL PROPERTY
AND RIGHTS TO PROPERTY, WHETHER REAL OR PERSONAL, BELONGING TO THE
EMPLOYER.
5. AN EMPLOYER WHO HAS OVERPAID A PENALTY ASSESSED UNDER THIS SECTION
MAY FILE A CLAIM FOR REFUND WITH THE DEPARTMENT. A CLAIM SHALL BE IN
WRITING IN SUCH FORM AS THE DEPARTMENT MAY BY RULE PRESCRIBE AND SHALL
STATE THE SPECIFIC GROUNDS UPON WHICH IT IS FOUNDED. AS SOON AS PRACTI-
CABLE AFTER A CLAIM FOR REFUND IS FILED, THE DEPARTMENT SHALL EXAMINE IT
AND EITHER ISSUE A REFUND OR ISSUE A NOTICE OF DENIAL. IF SUCH A PROTEST
IS FILED, THE DEPARTMENT SHALL RECONSIDER THE DENIAL AND GRANT THE
EMPLOYER A HEARING. AS SOON AS PRACTICABLE AFTER SUCH RECONSIDERATION
AND HEARING, THE DEPARTMENT SHALL ISSUE A NOTICE OF DECISION TO THE
EMPLOYER. THE NOTICE SHALL SET FORTH BRIEFLY THE DEPARTMENT'S FINDINGS
OF FACT AND THE BASIS OF DECISION IN EACH CASE DECIDED IN WHOLE OR IN
PART ADVERSELY TO THE EMPLOYER. A DENIAL OF A CLAIM FOR REFUND BECOMES
FINAL NINETY DAYS AFTER THE DATE OF ISSUANCE OF THE NOTICE OF THE DENIAL
EXCEPT FOR SUCH AMOUNTS DENIED AS TO WHICH THE EMPLOYER HAS FILED A
PROTEST WITH THE DEPARTMENT. IF A PROTEST HAS BEEN TIMELY FILED, THE
DECISION OF THE DEPARTMENT SHALL BECOME FINAL:
(A) IF NO ACTION FOR REVIEW OF THE DECISION IS COMMENCED ON THE DATE
ON WHICH THE TIME FOR COMMENCEMENT OF SUCH REVIEW HAS EXPIRED; OR
(B) IF A TIMELY ACTION FOR REVIEW OF THE DECISION IS COMMENCED ON THE
DATE ALL PROCEEDINGS IN COURT FOR THE REVIEW OF SUCH ASSESSMENT HAVE
TERMINATED OR THE TIME FOR THE TAKING THEREOF HAS EXPIRED WITHOUT SUCH
PROCEEDINGS BEING INSTITUTED.
6. NO NOTICE OF PROPOSED ASSESSMENT MAY BE ISSUED WITH RESPECT TO A
CALENDAR YEAR AFTER JUNE THIRTIETH OF THE FOURTH SUBSEQUENT CALENDAR
YEAR. NO CLAIM FOR REFUND MAY BE FILED MORE THAN ONE YEAR AFTER THE DATE
OF PAYMENT OF THE AMOUNT TO BE REFUNDED.
7. WHENEVER NOTICE IS REQUIRED BY THIS SECTION, IT MAY BE GIVEN OR
ISSUED BY MAILING IT BY FIRST-CLASS MAIL ADDRESSED TO THE PERSON
CONCERNED AT HIS OR HER LAST KNOWN ADDRESS.
8. ALL BOOKS AND RECORDS AND OTHER PAPERS AND DOCUMENTS RELEVANT TO
THE DETERMINATION OF ANY PENALTY DUE UNDER THIS SECTION SHALL, AT ALL
S. 6045 11
TIMES DURING BUSINESS HOURS OF THE DAY, BE SUBJECT TO INSPECTION BY THE
DEPARTMENT OR ITS DULY AUTHORIZED AGENTS AND EMPLOYEES.
9. THE DEPARTMENT MAY REQUIRE EMPLOYERS TO REPORT INFORMATION RELEVANT
TO THEIR COMPLIANCE WITH THIS ARTICLE ON TAX RETURNS AND FAILURE TO
PROVIDE THE REQUESTED INFORMATION ON A RETURN SHALL CAUSE SUCH RETURN TO
BE TREATED AS UNPROCESSABLE.
10. FOR PURPOSES OF ANY PROVISION OF STATE LAW ALLOWING THE DEPARTMENT
OR ANY OTHER AGENCY OF THIS STATE TO OFFSET AN AMOUNT OWED TO A TAXPAYER
AGAINST A TAX LIABILITY OF THAT TAXPAYER OR ALLOWING THE DEPARTMENT TO
OFFSET AN OVERPAYMENT OF TAX AGAINST ANY LIABILITY OWED TO THE STATE, A
PENALTY ASSESSED UNDER THIS SECTION SHALL BE DEEMED TO BE A TAX LIABIL-
ITY OF THE EMPLOYER AND ANY REFUND DUE TO AN EMPLOYER SHALL BE DEEMED TO
BE AN OVERPAYMENT OF TAX OF THE EMPLOYER.
11. EXCEPT AS PROVIDED IN THIS SUBSECTION, ALL INFORMATION RECEIVED BY
THE DEPARTMENT FROM RETURNS FILED BY AN EMPLOYER OR FROM ANY INVESTI-
GATION CONDUCTED UNDER THE PROVISIONS OF THIS ARTICLE SHALL BE CONFIDEN-
TIAL, EXCEPT FOR OFFICIAL PURPOSES WITHIN THE DEPARTMENT OR PURSUANT TO
OFFICIAL PROCEDURES FOR COLLECTION OF PENALTIES ASSESSED UNDER THIS
ARTICLE. NOTHING CONTAINED IN THIS SUBSECTION SHALL PREVENT THE DIREC-
TOR FROM PUBLISHING OR MAKING AVAILABLE TO THE PUBLIC REASONABLE STATIS-
TICS CONCERNING THE OPERATION OF THIS ARTICLE WHEREIN THE CONTENTS OF
RETURNS ARE GROUPED INTO AGGREGATES IN SUCH A WAY THAT THE SPECIFIC
INFORMATION OF ANY EMPLOYER SHALL NOT BE DISCLOSED. NOTHING CONTAINED IN
THIS SUBSECTION SHALL PREVENT THE DIRECTOR FROM DIVULGING INFORMATION TO
AN AUTHORIZED REPRESENTATIVE OF THE EMPLOYER OR TO ANY PERSON PURSUANT
TO A REQUEST OR AUTHORIZATION MADE BY THE EMPLOYER OR BY AN AUTHORIZED
REPRESENTATIVE OF THE EMPLOYER.
12. CIVIL PENALTIES AND FEES COLLECTED UNDER THIS ARTICLE SHALL BE
DEPOSITED WITH THE DEPARTMENT OF TAXATION AND FINANCE FOR PURPOSES DEDI-
CATED TO THE ADMINISTRATION OF THE PROGRAM.
13. THE DEPARTMENT MAY CHARGE THE BOARD A REASONABLE FEE FOR ITS COSTS
IN PERFORMING ITS DUTIES UNDER THIS SECTION TO THE EXTENT THAT SUCH
COSTS HAVE NOT BEEN RECOVERED FROM PENALTIES IMPOSED UNDER THIS SECTION.
14. THIS SECTION SHALL BECOME OPERATIVE NINE MONTHS AFTER THE BOARD
NOTIFIES THE DIRECTOR THAT THE PROGRAM HAS BEEN IMPLEMENTED. UPON
RECEIPT OF SUCH NOTIFICATION FROM THE BOARD, THE DEPARTMENT SHALL IMME-
DIATELY POST ON ITS INTERNET WEBSITE A NOTICE STATING THAT THIS SECTION
IS OPERATIVE AND THE DATE THAT IT IS FIRST OPERATIVE. THIS NOTICE SHALL
INCLUDE A STATEMENT THAT RATHER THAN ENROLLING EMPLOYEES IN THE PROGRAM
UNDER THIS ARTICLE, EMPLOYERS MAY SPONSOR AN ALTERNATIVE ARRANGEMENT.
S 586. DELAYED IMPLEMENTATION. IF THE BOARD DOES NOT OBTAIN ADEQUATE
FUNDS TO IMPLEMENT THE PROGRAM WITHIN THE TIME FRAME SET FORTH UNDER
THIS ARTICLE, THE BOARD MAY DELAY THE IMPLEMENTATION OF THE PROGRAM.
S 587. FEDERAL CONSIDERATIONS. THE BOARD SHALL REQUEST IN WRITING AN
OPINION OR RULING FROM THE APPROPRIATE ENTITY WITH JURISDICTION OVER THE
FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT REGARDING THE APPLICA-
BILITY OF THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT TO THE
PROGRAM. THE BOARD MAY NOT IMPLEMENT THE PROGRAM IF THE IRA ARRANGEMENTS
OFFERED UNDER THE PROGRAM FAIL TO QUALIFY FOR THE FAVORABLE FEDERAL
INCOME TAX TREATMENT ORDINARILY ACCORDED TO IRAS UNDER THE INTERNAL
REVENUE CODE OR IF IT IS DETERMINED THAT THE PROGRAM IS AN EMPLOYEE
BENEFIT PLAN AND STATE OR EMPLOYER LIABILITY IS ESTABLISHED UNDER THE
FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT.
S 3. The state finance law is amended by adding two new sections 99-x
and 99-y to read as follows:
S. 6045 12
S 99-X. NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND. 1. THERE
IS HEREBY ESTABLISHED WITHIN THE CUSTODY OF THE STATE COMPTROLLER, OR
HIS OR HER DESIGNEE, IN CONSULTATION WITH THE NEW YORK STATE SECURE
CHOICE SAVINGS PROGRAM BOARD, A NEW FUND TO BE KNOWN AS THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM FUND.
2. THE FUND SHALL INCLUDE THE INDIVIDUAL RETIREMENT ACCOUNTS OF ENROL-
LEES, WHICH SHALL BE ACCOUNTED FOR AS INDIVIDUAL ACCOUNTS.
3. MONEYS IN THE FUND SHALL CONSIST OF MONEYS RECEIVED FROM ENROLLEES
AND PARTICIPATING EMPLOYERS PURSUANT TO AUTOMATIC PAYROLL DEDUCTIONS AND
CONTRIBUTIONS TO SAVINGS MADE UNDER THE NEW YORK STATE SECURE CHOICE
SAVINGS PROGRAM PURSUANT TO ARTICLE 14-C OF THE RETIREMENT AND SOCIAL
SECURITY LAW.
4. THE FUND SHALL BE OPERATED IN A MANNER DETERMINED BY THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM BOARD, PROVIDED THAT THE FUND IS
OPERATED SO THAT THE ACCOUNTS OF ENROLLEES ESTABLISHED UNDER THE PROGRAM
MEET THE REQUIREMENTS FOR IRAS UNDER THE INTERNAL REVENUE CODE.
5. THE AMOUNTS DEPOSITED IN THE FUND SHALL NOT CONSTITUTE PROPERTY OF
THE STATE AND THE FUND SHALL NOT BE CONSTRUED TO BE A DEPARTMENT, INSTI-
TUTION, OR AGENCY OF THE STATE. AMOUNTS ON DEPOSIT IN THE FUND SHALL NOT
BE COMMINGLED WITH STATE FUNDS AND THE STATE SHALL HAVE NO CLAIM TO OR
AGAINST, OR INTEREST IN, SUCH FUNDS.
S 99-Y. NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND. 1. THERE IS
HEREBY ESTABLISHED WITHIN THE CUSTODY OF THE STATE COMPTROLLER, OR HIS
OR HER DESIGNEE, IN CONSULTATION WITH THE NEW YORK STATE SECURE CHOICE
SAVINGS PROGRAM BOARD, A NEW FUND TO BE KNOWN AS THE NEW YORK STATE
SECURE CHOICE ADMINISTRATIVE FUND.
2. THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD SHALL USE
MONEYS IN THE ADMINISTRATIVE FUND TO PAY FOR ADMINISTRATIVE EXPENSES IT
INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER THE NEW YORK STATE SECURE
CHOICE SAVINGS PROGRAM PURSUANT TO ARTICLE 14-C OF THE RETIREMENT AND
SOCIAL SECURITY LAW.
3. THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD SHALL USE
MONEYS IN THE ADMINISTRATIVE FUND TO COVER START-UP ADMINISTRATIVE
EXPENSES IT INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER ARTICLE 14-C
OF THE RETIREMENT AND SOCIAL SECURITY LAW.
4. THE ADMINISTRATIVE FUND MAY RECEIVE ANY GRANTS OR OTHER MONEYS
DESIGNATED FOR ADMINISTRATIVE PURPOSES FROM THE STATE, OR ANY UNIT OF
FEDERAL OR LOCAL GOVERNMENT, OR ANY OTHER PERSON, FIRM, PARTNERSHIP, OR
CORPORATION. ANY INTEREST EARNINGS THAT ARE ATTRIBUTABLE TO MONEYS IN
THE ADMINISTRATIVE FUND MUST BE DEPOSITED INTO THE ADMINISTRATIVE FUND.
S 4. This act shall take effect immediately.
co-Sponsors
(D) 15th Senate District
(D) Senate District
(D) Senate District
(D, WF) Senate District
2015-S6045A - Details
- Current Committee:
- Senate Finance
- Law Section:
- Retirement and Social Security Law
- Laws Affected:
- Add Art 14-C §§570 - 587, R & SS L; add §§99-aa & 99-bb, St Fin L
- Versions Introduced in 2017-2018 Legislative Session:
-
S4344
2015-S6045A - Summary
Creates a self-sufficient retirement savings program in the form of an automatic enrollment payroll deduction IRA, and establishes an administrative board responsible for promoting greater retirement savings for private sector employees in a convenient, low-cost, and transferable manner.
2015-S6045A - Sponsor Memo
BILL NUMBER: S6045A
TITLE OF BILL : An act to amend the retirement and social security
law and the state finance law, in relation to enacting the New York
state secure choice savings program act
PURPOSE OR GENERAL IDEA OF BILL : The purpose of this is bill to
create a self-sufficient retirement savings program in the form of an
automatic enrollment payroll deduction IRA, and establish an
administrative board responsible for promoting greater retirement
savings for private sector employees in a convenient, low-cost, and
transferable manner.
SUMMARY OF SPECIFIC PROVISIONS :
Section 1 titles the Act the "New York State Secure Choice Savings
Program Act". Section 2 amends the retirement and social security law
to add a new article, 14-C.
Section 570 defines terms: program established, composition of the
board, fiduciary duty, duties of the board, risk management,
investment firms, investment options, benefits, employer and employee
information packets and disclosure forms, program implementation and
enrollment, payments, duty and liability of the state, duty and
liability of participating employers, audit and reports, penalties,
delayed implementation, and federal considerations.
Section 571 establishes the New York State Secure Choice Savings Program, in the form of an automatic enrollment payroll deduction IRA, to administered by the New York Secure Choice Savings Board. Section 572 Establishes the New York state secure choice savings board, composed of five appointed members. Section 573 Outlines the fiduciary responsibilities and duties of the savings board. Section 574 Outlines the responsibilities and other duties of the savings board. Section 575 Requires the board to annually prepare and adopt a written statement outlining the provisions associated with risk management. Section 579 Provides for the creation and distribution of employer and employee information packets and disclosure forms. Section 580 Implements the New York state secure savings program within twenty four months after the effective date of this article. Section 582 Maintains that the state of New York shall have no duty or liability to any party for the payment of any retirement savings benefits accrued by any individual under the program. Section 584 Requires the board to submit annual financial reports and audits. Section 585 Enacts penalties for enrollment failure. Section 99-x Amends the state finance law to create the New York state secure choice savings program fund and the New York state secure choice administrative fund. JUSTIFICATION : According to a survey by the Bureau of Labor Statistics, 97% of privately owned establishments, employing 500 workers or more, offer retirement and health benefits. That percentage is halved when compared to establishments with less than 49 workers. Moreover, in 2014 President Barrack Obama suggested that states need to do more to provide workers with options to fund retirement plans due to congressional inaction. This legislation would provide employees of smaller establishment's access to retirement saving options. PRIOR LEGISLATIVE HISTORY : none FISCAL IMPLICATIONS : To Be Determined EFFECTIVE DATE : Immediately
2015-S6045A - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
6045--A
2015-2016 Regular Sessions
I N S E N A T E
September 11, 2015
___________
Introduced by Sen. SAVINO -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the retirement and social security law and the state
finance law, in relation to enacting the New York state secure choice
savings program act
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "New York state secure choice savings program act".
S 2. The retirement and social security law is amended by adding a new
article 14-C to read as follows:
ARTICLE 14-C
NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
SECTION 570. DEFINITIONS.
571. PROGRAM ESTABLISHED.
572. COMPOSITION OF THE BOARD.
573. FIDUCIARY DUTY.
574. DUTIES OF THE BOARD.
575. RISK MANAGEMENT.
576. INVESTMENT FIRMS.
577. INVESTMENT OPTIONS.
578. BENEFITS.
579. EMPLOYER AND EMPLOYEE INFORMATION PACKETS AND DISCLOSURE
FORMS.
580. PROGRAM IMPLEMENTATION AND ENROLLMENT.
581. PAYMENTS.
582. DUTY AND LIABILITY OF THE STATE.
583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS.
584. AUDIT AND REPORTS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11645-03-5
S. 6045--A 2
585. PENALTIES.
586. DELAYED IMPLEMENTATION.
587. FEDERAL CONSIDERATIONS.
S 570. DEFINITIONS. ALL TERMS SHALL HAVE THE SAME MEANING AS WHEN USED
IN A COMPARABLE CONTEXT IN THE INTERNAL REVENUE CODE. AS USED IN THIS
ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "BOARD" SHALL MEAN THE NEW YORK SECURE CHOICE SAVINGS BOARD ESTAB-
LISHED UNDER THIS ARTICLE.
2. "SUPERINTENDENT" SHALL MEAN THE SUPERINTENDENT OF THE DEPARTMENT OF
FINANCIAL SERVICES.
2-A. "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF FINANCIAL SERVICES.
3. "EMPLOYEE" SHALL MEAN ANY INDIVIDUAL WHO IS EIGHTEEN YEARS OF AGE
OR OLDER, WHO IS EMPLOYED BY AN EMPLOYER, AND WHO HAS WAGES THAT ARE
ALLOCABLE TO NEW YORK STATE DURING A CALENDAR YEAR.
4. "EMPLOYER" SHALL MEAN A PERSON OR ENTITY ENGAGED IN A BUSINESS,
INDUSTRY, PROFESSION, TRADE, OR OTHER ENTERPRISE IN NEW YORK STATE,
WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT (I) HAS AT NO TIME DURING THE
PREVIOUS CALENDAR YEAR EMPLOYED FEWER THAN TWENTY-FIVE EMPLOYEES IN THE
STATE, (II) HAS BEEN IN BUSINESS AT LEAST TWO YEARS, AND (III) HAS NOT
OFFERED A QUALIFIED RETIREMENT PLAN, INCLUDING, BUT NOT LIMITED TO, A
PLAN QUALIFIED UNDER SECTIONS 401(A), 401(K), 403(A), 403(B), 408(K),
408(P) OR 457(B) OF THE INTERNAL REVENUE CODE OF 1986 IN THE PRECEDING
TWO YEARS.
5. "ENROLLEE" SHALL MEAN ANY EMPLOYER WHO IS ENROLLED IN THE PROGRAM.
6. "FUND" SHALL MEAN THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
FUND.
7. "INTERNAL REVENUE CODE" SHALL MEAN THE INTERNAL REVENUE CODE OF
1986, OR ANY SUCCESSOR LAW, IN EFFECT FOR THE CALENDAR YEAR.
8. "IRA" SHALL MEAN A ROTH IRA (INDIVIDUAL RETIREMENT ACCOUNT).
9. "PARTICIPATING EMPLOYER" SHALL MEAN AN EMPLOYER OR SMALL EMPLOYER
THAT PROVIDES A PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT AS
PROVIDED FOR BY THIS ARTICLE FOR ITS EMPLOYEES WHO ARE ENROLLEES IN THE
PROGRAM.
10. "PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT" SHALL MEAN AN
ARRANGEMENT BY WHICH A PARTICIPATING EMPLOYER ALLOWS ENROLLEES TO REMIT
PAYROLL DEDUCTION CONTRIBUTIONS TO THE PROGRAM.
11. "PROGRAM" SHALL MEAN THE NEW YORK STATE SECURE CHOICE SAVINGS
PROGRAM.
12. "SMALL EMPLOYER" SHALL MEAN A PERSON OR ENTITY ENGAGED IN A BUSI-
NESS, INDUSTRY, PROFESSION, TRADE, OR OTHER ENTERPRISE IN NEW YORK
STATE, WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT (I) EMPLOYED LESS THAN
TWENTY-FIVE EMPLOYEES AT ANY ONE TIME IN THE STATE THROUGHOUT THE PREVI-
OUS CALENDAR YEAR, OR (II) HAS BEEN IN BUSINESS LESS THAN TWO YEARS, OR
BOTH ITEMS (I) AND (II), BUT THAT NOTIFIES THE DEPARTMENT THAT IT IS
INTERESTED IN BEING A PARTICIPATING EMPLOYER.
13. "WAGES" MEANS ANY COMPENSATION WITHIN THE MEANING OF SECTION
219(F)(1) OF THE INTERNAL REVENUE CODE THAT IS RECEIVED BY AN ENROLLEE
FROM A PARTICIPATING EMPLOYER DURING THE CALENDAR YEAR.
S 571. PROGRAM ESTABLISHED. A RETIREMENT SAVINGS PROGRAM IN THE FORM
OF AN AUTOMATIC ENROLLMENT PAYROLL DEDUCTION IRA, KNOWN AS THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM, IS HEREBY ESTABLISHED AND SHALL BE
ADMINISTERED BY THE BOARD FOR THE PURPOSE OF PROMOTING GREATER RETIRE-
MENT SAVINGS FOR PRIVATE-SECTOR EMPLOYEES IN A CONVENIENT, LOW-COST, AND
PORTABLE MANNER.
S 572. COMPOSITION OF THE BOARD. THERE IS HEREBY CREATED THE NEW YORK
STATE SECURE CHOICE SAVINGS BOARD.
S. 6045--A 3
1. THE BOARD SHALL CONSIST OF THE FOLLOWING SIX MEMBERS:
(A) THE SUPERINTENDENT, OR HIS OR HER DESIGNEE, WHO SHALL SERVE AS
CHAIR;
(B) THE STATE COMPTROLLER, OR HIS OR HER DESIGNEE;
(C) TWO PUBLIC REPRESENTATIVES WITH EXPERTISE IN RETIREMENT SAVINGS
PLAN ADMINISTRATION OR INVESTMENT, OR BOTH, APPOINTED BY THE GOVERNOR;
(D) A REPRESENTATIVE OF PARTICIPATING EMPLOYERS, APPOINTED BY THE
GOVERNOR; AND
(E) A REPRESENTATIVE OF ENROLLEES, APPOINTED BY THE GOVERNOR.
2. MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION BUT MAY BE
REIMBURSED FOR NECESSARY TRAVEL EXPENSES INCURRED IN CONNECTION WITH
THEIR BOARD DUTIES FROM FUNDS APPROPRIATED FOR THE PURPOSE.
3. THE INITIAL APPOINTMENTS FOR THE GOVERNOR'S APPOINTEES SHALL BE AS
FOLLOWS: ONE PUBLIC REPRESENTATIVE FOR FOUR YEARS; ONE PUBLIC REPRESEN-
TATIVE FOR TWO YEARS; THE REPRESENTATIVE OF PARTICIPATING EMPLOYERS FOR
THREE YEARS; AND THE REPRESENTATIVE OF ENROLLEES FOR ONE YEAR. THEREAFT-
ER, ALL THE GOVERNOR'S APPOINTEES SHALL BE FOR TERMS OF FOUR YEARS.
4. A VACANCY IN THE TERM OF AN APPOINTED BOARD MEMBER SHALL BE FILLED
FOR THE BALANCE OF THE UNEXPIRED TERM IN THE SAME MANNER AS THE ORIGINAL
APPOINTMENT.
5. EACH APPOINTMENT BY THE GOVERNOR SHALL BE SUBJECT TO APPROVAL BY
THE SUPERINTENDENT, WHO, UPON APPROVAL, SHALL CERTIFY HIS OR HER
APPROVAL TO THE SECRETARY OF STATE.
S 573. FIDUCIARY DUTY. THE BOARD, THE INDIVIDUAL MEMBERS OF THE BOARD,
THE TRUSTEES, ANY OTHER AGENTS APPOINTED OR ENGAGED BY THE BOARD, AND
ALL PERSONS SERVING AS PROGRAM STAFF SHALL DISCHARGE THEIR DUTIES WITH
RESPECT TO THE PROGRAM SOLELY IN THE INTEREST OF THE PROGRAM'S ENROLLEES
AND BENEFICIARIES AS FOLLOWS:
1. FOR THE EXCLUSIVE PURPOSES OF PROVIDING BENEFITS TO ENROLLEES AND
BENEFICIARIES AND DEFRAYING REASONABLE EXPENSES OF ADMINISTERING THE
PROGRAM;
2. BY INVESTING WITH THE CARE, SKILL, PRUDENCE, AND DILIGENCE UNDER
THE PREVAILING CIRCUMSTANCES THAT A PRUDENT PERSON ACTING IN A LIKE
CAPACITY AND FAMILIAR WITH THOSE MATTERS WOULD USE IN THE CONDUCT OF AN
ENTERPRISE OF A LIKE CHARACTER AND WITH LIKE AIMS; AND
3. BY USING ANY CONTRIBUTIONS PAID BY EMPLOYEES AND EMPLOYERS INTO THE
TRUST EXCLUSIVELY FOR THE PURPOSE OF PAYING BENEFITS TO THE ENROLLEES OF
THE PROGRAM, FOR THE COST OF ADMINISTRATION OF THE PROGRAM, AND FOR
INVESTMENTS MADE FOR THE BENEFIT OF THE PROGRAM.
S 574. DUTIES OF THE BOARD. IN ADDITION TO THE OTHER DUTIES AND
RESPONSIBILITIES STATED IN THIS ARTICLE, THE BOARD SHALL:
1. CAUSE THE PROGRAM TO BE DESIGNED, ESTABLISHED AND OPERATED IN A
MANNER THAT:
(A) ACCORDS WITH BEST PRACTICES FOR RETIREMENT SAVINGS VEHICLES;
(B) MAXIMIZES PARTICIPATION, SAVINGS, AND SOUND INVESTMENT PRACTICES;
(C) MAXIMIZES SIMPLICITY, INCLUDING EASE OF ADMINISTRATION FOR PARTIC-
IPATING EMPLOYERS AND ENROLLEES;
(D) PROVIDES AN EFFICIENT PRODUCT TO ENROLLEES BY POOLING INVESTMENT
FUNDS;
(E) ENSURES THE PORTABILITY OF BENEFITS; AND
(F) PROVIDES FOR THE DEACCUMULATION OF ENROLLEE ASSETS IN A MANNER
THAT MAXIMIZES FINANCIAL SECURITY IN RETIREMENT.
2. APPOINT A TRUSTEE TO THE IRA FUND IN COMPLIANCE WITH SECTION 408 OF
THE INTERNAL REVENUE CODE.
3. EXPLORE AND ESTABLISH INVESTMENT OPTIONS, SUBJECT TO THIS ARTICLE,
THAT OFFER EMPLOYEES RETURNS ON CONTRIBUTIONS AND THE CONVERSION OF
S. 6045--A 4
INDIVIDUAL RETIREMENT SAVINGS ACCOUNT BALANCES TO SECURE RETIREMENT
INCOME WITHOUT INCURRING DEBT OR LIABILITIES TO THE STATE.
4. ESTABLISH THE PROCESS BY WHICH INTEREST, INVESTMENT EARNINGS, AND
INVESTMENT LOSSES ARE ALLOCATED TO INDIVIDUAL PROGRAM ACCOUNTS ON A PRO
RATA BASIS AND ARE COMPUTED AT THE INTEREST RATE ON THE BALANCE OF AN
INDIVIDUAL'S ACCOUNT.
5. MAKE AND ENTER INTO CONTRACTS NECESSARY FOR THE ADMINISTRATION OF
THE PROGRAM AND FUND, INCLUDING, BUT NOT LIMITED TO, RETAINING AND
CONTRACTING WITH INVESTMENT MANAGERS, PRIVATE FINANCIAL INSTITUTIONS,
OTHER FINANCIAL AND SERVICE PROVIDERS, CONSULTANTS, ACTUARIES, COUNSEL,
AUDITORS, THIRD-PARTY ADMINISTRATORS, AND OTHER PROFESSIONALS AS NECES-
SARY.
6. CONDUCT A REVIEW OF THE PERFORMANCE OF ANY INVESTMENT VENDORS EVERY
FOUR YEARS, INCLUDING, BUT NOT LIMITED TO, A REVIEW OF RETURNS, FEES,
AND CUSTOMER SERVICE. A COPY OF REVIEWS SHALL BE POSTED TO THE BOARD'S
INTERNET WEBSITE.
7. DETERMINE THE NUMBER AND DUTIES OF STAFF MEMBERS NEEDED TO ADMINIS-
TER THE PROGRAM AND ASSEMBLE SUCH A STAFF, INCLUDING, AS NEEDED, EMPLOY-
ING STAFF, APPOINTING A PROGRAM ADMINISTRATOR, AND ENTERING INTO
CONTRACTS WITH THE SUPERINTENDENT TO MAKE EMPLOYEES OF THE DEPARTMENT
AVAILABLE TO ADMINISTER THE PROGRAM.
8. CAUSE MONEYS IN THE FUND TO BE HELD AND INVESTED AS POOLED INVEST-
MENTS DESCRIBED IN THIS ARTICLE, WITH A VIEW TO ACHIEVING COST SAVINGS
THROUGH EFFICIENCIES AND ECONOMIES OF SCALE.
9. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN ENROLLEE IS ABLE TO
CONTRIBUTE A PORTION OF HIS OR HER WAGES TO THE PROGRAM FOR AUTOMATIC
DEPOSIT OF THOSE CONTRIBUTIONS AND THE PROCESS BY WHICH THE PARTICIPAT-
ING EMPLOYER PROVIDES A PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT
TO FORWARD THOSE CONTRIBUTIONS AND RELATED INFORMATION TO THE PROGRAM,
INCLUDING, BUT NOT LIMITED TO, CONTRACTING WITH FINANCIAL SERVICE COMPA-
NIES AND THIRD-PARTY ADMINISTRATORS WITH THE CAPABILITY TO RECEIVE AND
PROCESS EMPLOYEE INFORMATION AND CONTRIBUTIONS FOR PAYROLL DEPOSIT
RETIREMENT SAVINGS ARRANGEMENTS OR SIMILAR ARRANGEMENTS.
10. DESIGN AND ESTABLISH THE PROCESS FOR ENROLLMENT INCLUDING THE
PROCESS BY WHICH AN EMPLOYEE CAN OPT NOT TO PARTICIPATE IN THE PROGRAM,
SELECT A CONTRIBUTION LEVEL, SELECT AN INVESTMENT OPTION, AND TERMINATE
PARTICIPATION IN THE PROGRAM.
11. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN INDIVIDUAL MAY
VOLUNTARILY ENROLL IN AND MAKE CONTRIBUTIONS TO THE PROGRAM.
12. ACCEPT ANY GRANTS, APPROPRIATIONS, OR OTHER MONEYS FROM THE STATE,
ANY UNIT OF FEDERAL, STATE, OR LOCAL GOVERNMENT, OR ANY OTHER PERSON,
FIRM, PARTNERSHIP, OR CORPORATION SOLELY FOR DEPOSIT INTO THE FUND,
WHETHER FOR INVESTMENT OR ADMINISTRATIVE PURPOSES.
13. EVALUATE THE NEED FOR, AND PROCURE AS NEEDED, INSURANCE AGAINST
ANY AND ALL LOSS IN CONNECTION WITH THE PROPERTY, ASSETS, OR ACTIVITIES
OF THE PROGRAM, AND INDEMNIFY AS NEEDED EACH MEMBER OF THE BOARD FROM
PERSONAL LOSS OR LIABILITY RESULTING FROM A MEMBER'S ACTION OR INACTION
AS A MEMBER OF THE BOARD.
14. MAKE PROVISIONS FOR THE PAYMENT OF ADMINISTRATIVE COSTS AND
EXPENSES FOR THE CREATION, MANAGEMENT, AND OPERATION OF THE PROGRAM.
SUBJECT TO APPROPRIATION, THE STATE MAY PAY ADMINISTRATIVE COSTS ASSOCI-
ATED WITH THE CREATION AND MANAGEMENT OF THE PROGRAM UNTIL SUFFICIENT
ASSETS ARE AVAILABLE IN THE FUND FOR THAT PURPOSE. THEREAFTER, ALL
ADMINISTRATIVE COSTS OF THE FUND, INCLUDING REPAYMENT OF ANY START-UP
FUNDS PROVIDED BY THE STATE, SHALL BE PAID ONLY OUT OF MONEYS ON DEPOSIT
THEREIN. HOWEVER, PRIVATE FUNDS OR FEDERAL FUNDING RECEIVED IN ORDER TO
S. 6045--A 5
IMPLEMENT THE PROGRAM UNTIL THE FUND IS SELF-SUSTAINING SHALL NOT BE
REPAID UNLESS THOSE FUNDS WERE OFFERED CONTINGENT UPON THE PROMISE OF
SUCH REPAYMENT. THE BOARD SHALL KEEP ANNUAL ADMINISTRATIVE EXPENSES AS
LOW AS POSSIBLE, BUT IN NO EVENT SHALL THEY EXCEED 0.75% OF THE TOTAL
TRUST BALANCE.
15. ALLOCATE ADMINISTRATIVE FEES TO INDIVIDUAL RETIREMENT ACCOUNTS IN
THE PROGRAM ON A PRO RATA BASIS.
16. SET MINIMUM AND MAXIMUM CONTRIBUTION LEVELS IN ACCORDANCE WITH
LIMITS ESTABLISHED FOR IRAS BY THE INTERNAL REVENUE CODE.
17. FACILITATE EDUCATION AND OUTREACH TO EMPLOYERS AND EMPLOYEES.
18. FACILITATE COMPLIANCE BY THE PROGRAM WITH ALL APPLICABLE REQUIRE-
MENTS FOR THE PROGRAM UNDER THE INTERNAL REVENUE CODE, INCLUDING TAX
QUALIFICATION REQUIREMENTS OR ANY OTHER APPLICABLE LAW AND ACCOUNTING
REQUIREMENTS.
19. CARRY OUT THE DUTIES AND OBLIGATIONS OF THE PROGRAM IN AN EFFEC-
TIVE, EFFICIENT, AND LOW-COST MANNER.
20. EXERCISE ANY AND ALL OTHER POWERS REASONABLY NECESSARY FOR THE
EFFECTUATION OF THE PURPOSES, OBJECTIVES, AND PROVISIONS OF THIS ARTICLE
PERTAINING TO THE PROGRAM.
21. DEPOSIT INTO THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND
ALL GRANTS, GIFTS, DONATIONS, FEES, AND EARNINGS FROM INVESTMENTS FROM
THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND THAT ARE USED TO
RECOVER ADMINISTRATIVE COSTS. ALL EXPENSES OF THE BOARD SHALL BE PAID
FROM THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND.
S 575. RISK MANAGEMENT. THE BOARD SHALL ANNUALLY PREPARE AND ADOPT A
WRITTEN STATEMENT OF INVESTMENT POLICY THAT INCLUDES A RISK MANAGEMENT
AND OVERSIGHT PROGRAM. THIS INVESTMENT POLICY SHALL PROHIBIT THE BOARD,
PROGRAM, AND FUND FROM BORROWING FOR INVESTMENT PURPOSES. THE RISK
MANAGEMENT AND OVERSIGHT PROGRAM SHALL BE DESIGNED TO ENSURE THAT AN
EFFECTIVE RISK MANAGEMENT SYSTEM IS IN PLACE TO MONITOR THE RISK LEVELS
OF THE PROGRAM AND FUND PORTFOLIO, TO ENSURE THAT THE RISKS TAKEN ARE
PRUDENT AND PROPERLY MANAGED, TO PROVIDE AN INTEGRATED PROCESS FOR OVER-
ALL RISK MANAGEMENT, AND TO ASSESS INVESTMENT RETURNS AS WELL AS RISK TO
DETERMINE IF THE RISKS TAKEN ARE ADEQUATELY COMPENSATED COMPARED TO
APPLICABLE PERFORMANCE BENCHMARKS AND STANDARDS. THE BOARD SHALL CONSID-
ER THE STATEMENT OF INVESTMENT POLICY AND ANY CHANGES IN THE INVESTMENT
POLICY AT A PUBLIC HEARING.
S 576. INVESTMENT FIRMS. 1. THE BOARD SHALL ENGAGE, AFTER AN OPEN BID
PROCESS, AN INVESTMENT MANAGER OR MANAGERS TO INVEST THE FUND AND ANY
OTHER ASSETS OF THE PROGRAM. MONEYS IN THE FUND MAY BE INVESTED OR REIN-
VESTED BY THE SUPERINTENDENT OR MAY BE INVESTED IN WHOLE OR IN PART. IN
SELECTING THE INVESTMENT MANAGER OR MANAGERS, THE BOARD SHALL TAKE INTO
CONSIDERATION AND GIVE WEIGHT TO THE INVESTMENT MANAGER'S FEES AND
CHARGES IN ORDER TO REDUCE THE PROGRAM'S ADMINISTRATIVE EXPENSES.
2. THE INVESTMENT MANAGER OR MANAGERS SHALL COMPLY WITH ANY AND ALL
APPLICABLE FEDERAL AND STATE LAWS, RULES, AND REGULATIONS, AS WELL AS
ANY AND ALL RULES, POLICIES, AND GUIDELINES PROMULGATED BY THE BOARD
WITH RESPECT TO THE PROGRAM AND THE INVESTMENT OF THE FUND, INCLUDING,
BUT NOT LIMITED TO, THE INVESTMENT POLICY.
3. THE INVESTMENT MANAGER OR MANAGERS SHALL PROVIDE SUCH REPORTS AS
THE BOARD DEEMS NECESSARY FOR THE BOARD TO OVERSEE EACH INVESTMENT
MANAGER'S PERFORMANCE AND THE PERFORMANCE OF THE FUND.
S 577. INVESTMENT OPTIONS. 1. THE BOARD SHALL ESTABLISH AS AN INVEST-
MENT OPTION A LIFE-CYCLE FUND WITH A TARGET DATE BASED UPON THE AGE OF
THE ENROLLEE. THIS SHALL BE THE DEFAULT INVESTMENT OPTION FOR ENROLLEES
S. 6045--A 6
WHO FAIL TO ELECT AN INVESTMENT OPTION UNLESS AND UNTIL THE BOARD DESIG-
NATES BY RULE A NEW INVESTMENT OPTION AS THE DEFAULT.
2. THE BOARD MAY ALSO ESTABLISH ANY OR ALL OF THE FOLLOWING ADDITIONAL
INVESTMENT OPTIONS:
(A) A CONSERVATIVE PRINCIPAL PROTECTION FUND;
(B) A GROWTH FUND;
(C) A SECURE RETURN FUND WHOSE PRIMARY OBJECTIVE IS THE PRESERVATION
OF THE SAFETY OF PRINCIPAL AND THE PROVISION OF A STABLE AND LOW-RISK
RATE OF RETURN; IF THE BOARD ELECTS TO ESTABLISH A SECURE RETURN FUND,
THE BOARD MAY PROCURE ANY INSURANCE, ANNUITY, OR OTHER PRODUCT TO INSURE
THE VALUE OF INDIVIDUALS' ACCOUNTS AND GUARANTEE A RATE OF RETURN; THE
COST OF SUCH FUNDING MECHANISM SHALL BE PAID OUT OF THE FUND; UNDER NO
CIRCUMSTANCES SHALL THE BOARD, PROGRAM, FUND, THE STATE, OR ANY PARTIC-
IPATING EMPLOYER ASSUME ANY LIABILITY FOR INVESTMENT OR ACTUARIAL RISK;
THE BOARD SHALL DETERMINE WHETHER TO ESTABLISH SUCH INVESTMENT OPTIONS
BASED UPON AN ANALYSIS OF THEIR COST, RISK PROFILE, BENEFIT LEVEL,
FEASIBILITY, AND EASE OF IMPLEMENTATION; OR
(D) AN ANNUITY FUND.
3. IF THE BOARD ELECTS TO ESTABLISH A SECURE RETURN FUND, THE BOARD
SHALL THEN DETERMINE WHETHER SUCH OPTION SHALL REPLACE THE TARGET DATE
OR LIFE-CYCLE FUND AS THE DEFAULT INVESTMENT OPTION FOR ENROLLEES WHO DO
NOT ELECT AN INVESTMENT OPTION. IN MAKING SUCH DETERMINATION, THE BOARD
SHALL CONSIDER THE COST, RISK PROFILE, BENEFIT LEVEL, AND EASE OF
ENROLLMENT IN THE SECURE RETURN FUND. THE BOARD MAY AT ANY TIME THERE-
AFTER REVISIT THIS QUESTION AND, BASED UPON AN ANALYSIS OF THESE CRITE-
RIA, ESTABLISH EITHER THE SECURE RETURN FUND OR THE LIFE-CYCLE FUND AS
THE DEFAULT FOR ENROLLEES WHO DO NOT ELECT AN INVESTMENT OPTION.
S 578. BENEFITS. INTEREST, INVESTMENT EARNINGS, AND INVESTMENT LOSSES
SHALL BE ALLOCATED TO INDIVIDUAL PROGRAM ACCOUNTS AS ESTABLISHED BY THE
BOARD PURSUANT TO THIS ARTICLE. AN INDIVIDUAL'S RETIREMENT SAVINGS BENE-
FIT UNDER THE PROGRAM SHALL BE AN AMOUNT EQUAL TO THE BALANCE IN THE
INDIVIDUAL'S PROGRAM ACCOUNT ON THE DATE THE RETIREMENT SAVINGS BENEFIT
BECOMES PAYABLE. THE STATE SHALL HAVE NO LIABILITY FOR THE PAYMENT OF
ANY BENEFIT TO ANY PARTICIPANT IN THE PROGRAM.
S 579. EMPLOYER AND EMPLOYEE INFORMATION PACKETS AND DISCLOSURE FORMS.
1. PRIOR TO THE OPENING OF THE PROGRAM FOR ENROLLMENT, THE BOARD SHALL
DESIGN AND DISSEMINATE TO ALL EMPLOYERS AN EMPLOYER INFORMATION PACKET
AND AN EMPLOYEE INFORMATION PACKET, WHICH SHALL INCLUDE BACKGROUND
INFORMATION ON THE PROGRAM, APPROPRIATE DISCLOSURES FOR EMPLOYEES, AND
INFORMATION REGARDING THE VENDOR INTERNET WEBSITE DESCRIBED.
2. THE BOARD SHALL PROVIDE FOR THE CONTENTS OF BOTH THE EMPLOYEE
INFORMATION PACKET AND THE EMPLOYER INFORMATION PACKET.
3. THE EMPLOYEE INFORMATION PACKET SHALL INCLUDE A DISCLOSURE FORM.
THE DISCLOSURE FORM SHALL EXPLAIN, BUT NOT BE LIMITED TO, ALL OF THE
FOLLOWING:
(A) THE BENEFITS AND RISKS ASSOCIATED WITH MAKING CONTRIBUTIONS TO THE
PROGRAM;
(B) THE MECHANICS OF HOW TO MAKE CONTRIBUTIONS TO THE PROGRAM;
(C) HOW TO OPT OUT OF THE PROGRAM;
(D) HOW TO PARTICIPATE IN THE PROGRAM WITH A LEVEL OF EMPLOYEE
CONTRIBUTIONS OTHER THAN THREE PERCENT;
(E) THE PROCESS FOR WITHDRAWAL OF RETIREMENT SAVINGS;
(F) HOW TO OBTAIN ADDITIONAL INFORMATION ABOUT THE PROGRAM;
(G) THAT EMPLOYEES SEEKING FINANCIAL ADVICE SHOULD CONTACT FINANCIAL
ADVISORS, THAT PARTICIPATING EMPLOYERS ARE NOT IN A POSITION TO PROVIDE
S. 6045--A 7
FINANCIAL ADVICE, AND THAT PARTICIPATING EMPLOYERS ARE NOT LIABLE FOR
DECISIONS EMPLOYEES MAKE PURSUANT TO THIS ARTICLE;
(H) THAT THE PROGRAM IS NOT AN EMPLOYER-SPONSORED RETIREMENT PLAN; AND
(I) THAT THE PROGRAM FUND IS NOT GUARANTEED BY THE STATE.
4. THE EMPLOYEE INFORMATION PACKET SHALL ALSO INCLUDE A FORM FOR AN
EMPLOYEE TO NOTE HIS OR HER DECISION TO OPT OUT OF PARTICIPATION IN THE
PROGRAM OR ELECT TO PARTICIPATE WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS
OTHER THAN THREE PERCENT.
5. PARTICIPATING EMPLOYERS SHALL SUPPLY THE EMPLOYEE INFORMATION PACK-
ET TO EMPLOYEES UPON LAUNCH OF THE PROGRAM. PARTICIPATING EMPLOYERS
SHALL SUPPLY THE EMPLOYEE INFORMATION PACKET TO NEW EMPLOYEES AT THE
TIME OF HIRING, AND NEW EMPLOYEES MAY OPT OUT OF PARTICIPATION IN THE
PROGRAM OR ELECT TO PARTICIPATE WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS
OTHER THAN THREE PERCENT AT THAT TIME.
S 580. PROGRAM IMPLEMENTATION AND ENROLLMENT. EXCEPT AS OTHERWISE
PROVIDED IN THIS ARTICLE, THE PROGRAM SHALL BE IMPLEMENTED, AND ENROLL-
MENT OF EMPLOYEES SHALL BEGIN, WITHIN TWENTY-FOUR MONTHS AFTER THE
EFFECTIVE DATE OF THIS ARTICLE. THE PROVISIONS OF THIS SECTION SHALL BE
IN FORCE AFTER THE BOARD OPENS THE PROGRAM FOR ENROLLMENT.
1. EACH EMPLOYER SHALL ESTABLISH A PAYROLL DEPOSIT RETIREMENT SAVINGS
ARRANGEMENT TO ALLOW EACH EMPLOYEE TO PARTICIPATE IN THE PROGRAM AT MOST
NINE MONTHS AFTER THE BOARD OPENS THE PROGRAM FOR ENROLLMENT.
2. EMPLOYERS SHALL AUTOMATICALLY ENROLL IN THE PROGRAM EACH OF THEIR
EMPLOYEES WHO HAS NOT OPTED OUT OF PARTICIPATION IN THE PROGRAM USING
THE FORM DESCRIBED IN THIS ARTICLE AND SHALL PROVIDE PAYROLL DEDUCTION
RETIREMENT SAVINGS ARRANGEMENTS FOR SUCH EMPLOYEES AND DEPOSIT, ON
BEHALF OF SUCH EMPLOYEES, THESE FUNDS INTO THE PROGRAM. SMALL EMPLOYERS
MAY, BUT ARE NOT REQUIRED TO, PROVIDE PAYROLL DEDUCTION RETIREMENT
SAVINGS ARRANGEMENTS FOR EACH EMPLOYEE WHO ELECTS TO PARTICIPATE IN THE
PROGRAM.
3. ENROLLEES SHALL HAVE THE ABILITY TO SELECT A CONTRIBUTION LEVEL
INTO THE FUND. THIS LEVEL MAY BE EXPRESSED AS A PERCENTAGE OF WAGES OR
AS A DOLLAR AMOUNT UP TO THE DEDUCTIBLE AMOUNT FOR THE ENROLLEE'S TAXA-
BLE YEAR UNDER SECTION 219(B)(1)(A) OF THE INTERNAL REVENUE CODE. ENROL-
LEES MAY CHANGE THEIR CONTRIBUTION LEVEL AT ANY TIME, SUBJECT TO RULES
PROMULGATED BY THE BOARD. IF AN ENROLLEE FAILS TO SELECT A CONTRIBUTION
LEVEL USING THE FORM DESCRIBED IN THIS ARTICLE, THEN HE OR SHE SHALL
CONTRIBUTE THREE PERCENT OF HIS OR HER WAGES TO THE PROGRAM, PROVIDED
THAT SUCH CONTRIBUTIONS SHALL NOT CAUSE THE ENROLLEE'S TOTAL CONTRIB-
UTIONS TO IRAS FOR THE YEAR TO EXCEED THE DEDUCTIBLE AMOUNT FOR THE
ENROLLEE'S TAXABLE YEAR UNDER SECTION 219(B)(1)(A) OF THE INTERNAL
REVENUE CODE.
4. ENROLLEES MAY SELECT AN INVESTMENT OPTION FROM THE PERMITTED
INVESTMENT OPTIONS LISTED IN THIS ARTICLE. ENROLLEES MAY CHANGE THEIR
INVESTMENT OPTION AT ANY TIME, SUBJECT TO RULES PROMULGATED BY THE
BOARD. IN THE EVENT THAT AN ENROLLEE FAILS TO SELECT AN INVESTMENT
OPTION, THAT ENROLLEE SHALL BE PLACED IN THE INVESTMENT OPTION SELECTED
BY THE BOARD AS THE DEFAULT UNDER THIS ARTICLE. IF THE BOARD HAS NOT
SELECTED A DEFAULT INVESTMENT OPTION UNDER THIS ARTICLE, THEN AN ENROL-
LEE WHO FAILS TO SELECT AN INVESTMENT OPTION SHALL BE PLACED IN THE
LIFE-CYCLE FUND INVESTMENT OPTION.
5. FOLLOWING INITIAL IMPLEMENTATION OF THE PROGRAM PURSUANT TO THIS
SECTION, AT LEAST ONCE EVERY YEAR, PARTICIPATING EMPLOYERS SHALL DESIG-
NATE AN OPEN ENROLLMENT PERIOD DURING WHICH EMPLOYEES WHO PREVIOUSLY
OPTED OUT OF THE PROGRAM MAY ENROLL IN THE PROGRAM.
S. 6045--A 8
6. AN EMPLOYEE WHO OPTS OUT OF THE PROGRAM WHO SUBSEQUENTLY WANTS TO
PARTICIPATE THROUGH THE PARTICIPATING EMPLOYER'S PAYROLL DEPOSIT RETIRE-
MENT SAVINGS ARRANGEMENT MAY ONLY ENROLL DURING THE PARTICIPATING
EMPLOYER'S DESIGNATED OPEN ENROLLMENT PERIOD OR IF PERMITTED BY THE
PARTICIPATING EMPLOYER AT AN EARLIER TIME.
7. EMPLOYERS SHALL RETAIN THE OPTION AT ALL TIMES TO SET UP ANY TYPE
OF EMPLOYER-SPONSORED RETIREMENT PLAN OR TO OFFER AN AUTOMATIC ENROLL-
MENT PAYROLL DEDUCTION IRA, INSTEAD OF HAVING A PAYROLL DEPOSIT RETIRE-
MENT SAVINGS ARRANGEMENT TO ALLOW EMPLOYEE PARTICIPATION IN THE PROGRAM.
8. AN EMPLOYEE MAY TERMINATE HIS OR HER PARTICIPATION IN THE PROGRAM
AT ANY TIME IN A MANNER PRESCRIBED BY THE BOARD.
9. THE BOARD SHALL ESTABLISH AND MAINTAIN AN INTERNET WEBSITE DESIGNED
TO ASSIST EMPLOYERS IN IDENTIFYING PRIVATE SECTOR PROVIDERS OF RETIRE-
MENT ARRANGEMENTS THAT CAN BE SET UP BY THE EMPLOYER RATHER THAN ALLOW-
ING EMPLOYEE PARTICIPATION IN THE PROGRAM UNDER THIS ARTICLE; HOWEVER,
THE BOARD SHALL ONLY ESTABLISH AND MAINTAIN AN INTERNET WEBSITE UNDER
THIS SUBDIVISION IF THERE IS SUFFICIENT INTEREST IN SUCH AN INTERNET
WEBSITE BY PRIVATE SECTOR PROVIDERS AND IF THE PRIVATE SECTOR PROVIDERS
FURNISH THE FUNDING NECESSARY TO ESTABLISH AND MAINTAIN THE INTERNET
WEBSITE. THE BOARD MUST PROVIDE PUBLIC NOTICE OF THE AVAILABILITY OF AND
THE PROCESS FOR INCLUSION ON THE INTERNET WEBSITE BEFORE IT BECOMES
PUBLICLY AVAILABLE. THIS INTERNET WEBSITE MUST BE AVAILABLE TO THE
PUBLIC BEFORE THE BOARD OPENS THE PROGRAM FOR ENROLLMENT, AND THE INTER-
NET WEBSITE ADDRESS MUST BE INCLUDED ON ANY INTERNET WEBSITE POSTING OR
OTHER MATERIALS REGARDING THE PROGRAM OFFERED TO THE PUBLIC BY THE
BOARD.
S 581. PAYMENTS. EMPLOYEE CONTRIBUTIONS DEDUCTED BY THE PARTICIPATING
EMPLOYER THROUGH PAYROLL DEDUCTION SHALL BE PAID BY THE PARTICIPATING
EMPLOYER TO THE FUND USING ONE OR MORE PAYROLL DEPOSIT RETIREMENT
SAVINGS ARRANGEMENTS ESTABLISHED BY THE BOARD UNDER THIS ARTICLE,
EITHER:
1. ON OR BEFORE THE LAST DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH
THE COMPENSATION OTHERWISE WOULD HAVE BEEN PAYABLE TO THE EMPLOYEE IN
CASH; OR
2. BEFORE SUCH LATER DEADLINE PRESCRIBED BY THE BOARD FOR MAKING SUCH
PAYMENTS, BUT NOT LATER THAN THE DUE DATE FOR THE DEPOSIT OF TAX
REQUIRED TO BE DEDUCTED AND WITHHELD RELATING TO COLLECTION OF INCOME
TAX AT SOURCE ON WAGES OR FOR THE DEPOSIT OF TAX REQUIRED TO BE PAID
UNDER THE UNEMPLOYMENT INSURANCE SYSTEM FOR THE PAYROLL PERIOD TO WHICH
SUCH PAYMENTS RELATE.
S 582. DUTY AND LIABILITY OF THE STATE. 1. THE STATE SHALL HAVE NO
DUTY OR LIABILITY TO ANY PARTY FOR THE PAYMENT OF ANY RETIREMENT SAVINGS
BENEFITS ACCRUED BY ANY INDIVIDUAL UNDER THE PROGRAM. ANY FINANCIAL
LIABILITY FOR THE PAYMENT OF RETIREMENT SAVINGS BENEFITS IN EXCESS OF
FUNDS AVAILABLE UNDER THE PROGRAM SHALL BE BORNE SOLELY BY THE ENTITIES
WITH WHOM THE BOARD CONTRACTS TO PROVIDE INSURANCE TO PROTECT THE VALUE
OF THE PROGRAM.
2. NO STATE BOARD, COMMISSION, OR AGENCY, OR ANY OFFICER, EMPLOYEE, OR
MEMBER THEREOF IS LIABLE FOR ANY LOSS OR DEFICIENCY RESULTING FROM
PARTICULAR INVESTMENTS SELECTED UNDER THIS ARTICLE, EXCEPT FOR ANY
LIABILITY THAT ARISES OUT OF A BREACH OF FIDUCIARY DUTY.
S 583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS. 1. PARTICIPAT-
ING EMPLOYERS SHALL NOT HAVE ANY LIABILITY FOR AN EMPLOYEE'S DECISION TO
PARTICIPATE IN, OR OPT OUT OF, THE PROGRAM OR FOR THE INVESTMENT DECI-
SIONS OF THE BOARD OR OF ANY ENROLLEE.
S. 6045--A 9
2. A PARTICIPATING EMPLOYER SHALL NOT BE A FIDUCIARY, OR CONSIDERED TO
BE A FIDUCIARY, OVER THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT
BEAR RESPONSIBILITY FOR THE ADMINISTRATION, INVESTMENT, OR INVESTMENT
PERFORMANCE OF THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT BE LIABLE
WITH REGARD TO INVESTMENT RETURNS, PROGRAM DESIGN, AND BENEFITS PAID TO
PROGRAM PARTICIPANTS.
S 584. AUDIT AND REPORTS. 1. THE BOARD SHALL ANNUALLY SUBMIT:
(A) AN AUDITED FINANCIAL REPORT, PREPARED IN ACCORDANCE WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES, ON THE OPERATIONS OF THE PROGRAM DURING
EACH CALENDAR YEAR BY JULY FIRST OF THE FOLLOWING YEAR TO THE GOVERNOR,
THE COMPTROLLER, THE SUPERINTENDENT AND THE SENATE AND ASSEMBLY; AND
(B) A REPORT PREPARED BY THE BOARD, WHICH SHALL INCLUDE, BUT IS NOT
LIMITED TO, A SUMMARY OF THE BENEFITS PROVIDED BY THE PROGRAM, INCLUDING
THE NUMBER OF ENROLLEES IN THE PROGRAM, THE PERCENTAGE AND AMOUNTS OF
INVESTMENT OPTIONS AND RATES OF RETURN, AND SUCH OTHER INFORMATION THAT
IS RELEVANT TO MAKE A FULL, FAIR, AND EFFECTIVE DISCLOSURE OF THE OPER-
ATIONS OF THE PROGRAM AND THE FUND. THE ANNUAL AUDIT SHALL BE MADE BY AN
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT AND SHALL INCLUDE, BUT IS NOT
LIMITED TO, DIRECT AND INDIRECT COSTS ATTRIBUTABLE TO THE USE OF OUTSIDE
CONSULTANTS, INDEPENDENT CONTRACTORS, AND ANY OTHER PERSONS WHO ARE NOT
STATE EMPLOYEES FOR THE ADMINISTRATION OF THE PROGRAM.
2. IN ADDITION TO ANY OTHER STATEMENTS OR REPORTS REQUIRED BY LAW, THE
BOARD SHALL PROVIDE PERIODIC REPORTS AT LEAST ANNUALLY TO PARTICIPATING
EMPLOYERS, REPORTING THE NAMES OF EACH ENROLLEE EMPLOYED BY THE PARTIC-
IPATING EMPLOYER AND THE AMOUNTS OF CONTRIBUTIONS MADE BY THE PARTIC-
IPATING EMPLOYER ON BEHALF OF EACH EMPLOYEE DURING THE REPORTING PERIOD,
AS WELL AS TO ENROLLEES, REPORTING CONTRIBUTIONS AND INVESTMENT INCOME
ALLOCATED TO, WITHDRAWALS FROM, AND BALANCES IN THEIR PROGRAM ACCOUNTS
FOR THE REPORTING PERIOD. SUCH REPORTS MAY INCLUDE ANY OTHER INFORMATION
REGARDING THE PROGRAM AS THE BOARD MAY DETERMINE.
S 585. PENALTIES. 1. AN EMPLOYER WHO FAILS WITHOUT REASONABLE CAUSE TO
ENROLL AN EMPLOYEE IN THE PROGRAM WITHIN THE TIME PRESCRIBED UNDER THIS
ARTICLE SHALL BE SUBJECT TO A PENALTY EQUAL TO:
(A) TWO HUNDRED FIFTY DOLLARS FOR EACH EMPLOYEE FOR EACH CALENDAR YEAR
OR PORTION OF A CALENDAR YEAR DURING WHICH THE EMPLOYEE NEITHER WAS
ENROLLED IN THE PROGRAM NOR HAD ELECTED OUT OF PARTICIPATION IN THE
PROGRAM; OR
(B) FOR EACH CALENDAR YEAR BEGINNING AFTER THE DATE A PENALTY HAS BEEN
ASSESSED WITH RESPECT TO AN EMPLOYEE, FIVE HUNDRED DOLLARS FOR ANY
PORTION OF THAT CALENDAR YEAR DURING WHICH SUCH EMPLOYEE CONTINUES TO BE
UNENROLLED WITHOUT ELECTING OUT OF PARTICIPATION IN THE PROGRAM.
2. AFTER DETERMINING THAT AN EMPLOYER IS SUBJECT TO PENALTY UNDER THIS
SECTION FOR A CALENDAR YEAR, THE DEPARTMENT SHALL ISSUE A NOTICE OF
PROPOSED ASSESSMENT TO SUCH EMPLOYER, STATING THE NUMBER OF EMPLOYEES
FOR WHICH THE PENALTY IS PROPOSED UNDER THIS SECTION AND THE NUMBER OF
EMPLOYEES FOR WHICH THE PENALTY IS PROPOSED UNDER THIS SECTION FOR SUCH
CALENDAR YEAR, AND THE TOTAL AMOUNT OF PENALTIES PROPOSED. UPON THE
EXPIRATION OF NINETY DAYS AFTER THE DATE ON WHICH A NOTICE OF PROPOSED
ASSESSMENT WAS ISSUED, THE PENALTIES SPECIFIED THEREIN SHALL BE DEEMED
ASSESSED, UNLESS THE EMPLOYER HAD FILED A PROTEST WITH THE DEPARTMENT
UNDER THIS SECTION. IF, WITHIN NINETY DAYS AFTER THE DATE ON WHICH IT
WAS ISSUED, A PROTEST OF A NOTICE OF PROPOSED ASSESSMENT IS FILED UNDER
THIS SECTION, THE PENALTIES SPECIFIED THEREIN SHALL BE DEEMED ASSESSED
UPON THE DATE WHEN THE DECISION OF THE DEPARTMENT WITH RESPECT TO THE
PROTEST BECOMES FINAL.
S. 6045--A 10
3. A WRITTEN PROTEST AGAINST THE PROPOSED ASSESSMENT SHALL BE FILED
WITH THE DEPARTMENT IN SUCH FORM AS THE DEPARTMENT MAY BY RULE
PRESCRIBE, SETTING FORTH THE GROUNDS ON WHICH SUCH PROTEST IS BASED. IF
SUCH A PROTEST IS FILED WITHIN NINETY DAYS AFTER THE DATE THE NOTICE OF
PROPOSED ASSESSMENT IS ISSUED, THE DEPARTMENT SHALL RECONSIDER THE
PROPOSED ASSESSMENT AND SHALL GRANT THE EMPLOYER A HEARING. AS SOON AS
PRACTICABLE AFTER SUCH RECONSIDERATION AND HEARING, THE DEPARTMENT SHALL
ISSUE A NOTICE OF DECISION TO THE EMPLOYER, SETTING FORTH THE DEPART-
MENT'S FINDINGS OF FACT AND THE BASIS OF DECISION. THE DECISION OF THE
DEPARTMENT SHALL BECOME FINAL:
(A) IF NO ACTION FOR REVIEW OF THE DECISION IS COMMENCED, ON THE DATE
ON WHICH THE TIME FOR COMMENCEMENT OF SUCH REVIEW HAS EXPIRED; OR
(B) IF A TIMELY ACTION FOR REVIEW OF THE DECISION IS COMMENCED, ON THE
DATE ALL PROCEEDINGS IN COURT FOR THE REVIEW OF SUCH ASSESSMENT HAVE
TERMINATED OR THE TIME FOR THE TAKING THEREOF HAS EXPIRED WITHOUT SUCH
PROCEEDINGS BEING INSTITUTED.
4. AS SOON AS PRACTICABLE AFTER THE PENALTIES SPECIFIED IN A NOTICE OF
PROPOSED ASSESSMENT ARE DEEMED ASSESSED, THE DEPARTMENT SHALL GIVE
NOTICE TO THE EMPLOYER LIABLE FOR ANY UNPAID PORTION OF SUCH ASSESSMENT,
STATING THE AMOUNT DUE AND DEMANDING PAYMENT. IF AN EMPLOYER NEGLECTS OR
REFUSES TO PAY THE ENTIRE LIABILITY SHOWN ON THE NOTICE AND DEMAND WITH-
IN TEN DAYS AFTER THE NOTICE AND DEMAND IS ISSUED, THE UNPAID AMOUNT OF
THE LIABILITY SHALL BE A LIEN IN FAVOR OF THE STATE UPON ALL PROPERTY
AND RIGHTS TO PROPERTY, WHETHER REAL OR PERSONAL, BELONGING TO THE
EMPLOYER.
5. AN EMPLOYER WHO HAS OVERPAID A PENALTY ASSESSED UNDER THIS SECTION
MAY FILE A CLAIM FOR REFUND WITH THE DEPARTMENT. A CLAIM SHALL BE IN
WRITING IN SUCH FORM AS THE DEPARTMENT MAY BY RULE PRESCRIBE AND SHALL
STATE THE SPECIFIC GROUNDS UPON WHICH IT IS FOUNDED. AS SOON AS PRACTI-
CABLE AFTER A CLAIM FOR REFUND IS FILED, THE DEPARTMENT SHALL EXAMINE IT
AND EITHER ISSUE A REFUND OR ISSUE A NOTICE OF DENIAL. IF SUCH A PROTEST
IS FILED, THE DEPARTMENT SHALL RECONSIDER THE DENIAL AND GRANT THE
EMPLOYER A HEARING. AS SOON AS PRACTICABLE AFTER SUCH RECONSIDERATION
AND HEARING, THE DEPARTMENT SHALL ISSUE A NOTICE OF DECISION TO THE
EMPLOYER. THE NOTICE SHALL SET FORTH BRIEFLY THE DEPARTMENT'S FINDINGS
OF FACT AND THE BASIS OF DECISION IN EACH CASE DECIDED IN WHOLE OR IN
PART ADVERSELY TO THE EMPLOYER. A DENIAL OF A CLAIM FOR REFUND BECOMES
FINAL NINETY DAYS AFTER THE DATE OF ISSUANCE OF THE NOTICE OF THE DENIAL
EXCEPT FOR SUCH AMOUNTS DENIED AS TO WHICH THE EMPLOYER HAS FILED A
PROTEST WITH THE DEPARTMENT. IF A PROTEST HAS BEEN TIMELY FILED, THE
DECISION OF THE DEPARTMENT SHALL BECOME FINAL:
(A) IF NO ACTION FOR REVIEW OF THE DECISION IS COMMENCED ON THE DATE
ON WHICH THE TIME FOR COMMENCEMENT OF SUCH REVIEW HAS EXPIRED; OR
(B) IF A TIMELY ACTION FOR REVIEW OF THE DECISION IS COMMENCED ON THE
DATE ALL PROCEEDINGS IN COURT FOR THE REVIEW OF SUCH ASSESSMENT HAVE
TERMINATED OR THE TIME FOR THE TAKING THEREOF HAS EXPIRED WITHOUT SUCH
PROCEEDINGS BEING INSTITUTED.
6. NO NOTICE OF PROPOSED ASSESSMENT MAY BE ISSUED WITH RESPECT TO A
CALENDAR YEAR AFTER JUNE THIRTIETH OF THE FOURTH SUBSEQUENT CALENDAR
YEAR. NO CLAIM FOR REFUND MAY BE FILED MORE THAN ONE YEAR AFTER THE DATE
OF PAYMENT OF THE AMOUNT TO BE REFUNDED.
7. WHENEVER NOTICE IS REQUIRED BY THIS SECTION, IT MAY BE GIVEN OR
ISSUED BY MAILING IT BY FIRST-CLASS MAIL ADDRESSED TO THE PERSON
CONCERNED AT HIS OR HER LAST KNOWN ADDRESS.
8. ALL BOOKS AND RECORDS AND OTHER PAPERS AND DOCUMENTS RELEVANT TO
THE DETERMINATION OF ANY PENALTY DUE UNDER THIS SECTION SHALL, AT ALL
S. 6045--A 11
TIMES DURING BUSINESS HOURS OF THE DAY, BE SUBJECT TO INSPECTION BY THE
DEPARTMENT OR ITS DULY AUTHORIZED AGENTS AND EMPLOYEES.
9. THE DEPARTMENT MAY REQUIRE EMPLOYERS TO REPORT INFORMATION RELEVANT
TO THEIR COMPLIANCE WITH THIS ARTICLE ON TAX RETURNS AND FAILURE TO
PROVIDE THE REQUESTED INFORMATION ON A RETURN SHALL CAUSE SUCH RETURN TO
BE TREATED AS UNPROCESSABLE.
10. FOR PURPOSES OF ANY PROVISION OF STATE LAW ALLOWING THE DEPARTMENT
OR ANY OTHER AGENCY OF THIS STATE TO OFFSET AN AMOUNT OWED TO A TAXPAYER
AGAINST A TAX LIABILITY OF THAT TAXPAYER OR ALLOWING THE DEPARTMENT TO
OFFSET AN OVERPAYMENT OF TAX AGAINST ANY LIABILITY OWED TO THE STATE, A
PENALTY ASSESSED UNDER THIS SECTION SHALL BE DEEMED TO BE A TAX LIABIL-
ITY OF THE EMPLOYER AND ANY REFUND DUE TO AN EMPLOYER SHALL BE DEEMED TO
BE AN OVERPAYMENT OF TAX OF THE EMPLOYER.
11. EXCEPT AS PROVIDED IN THIS SUBDIVISION, ALL INFORMATION RECEIVED
BY THE DEPARTMENT FROM RETURNS FILED BY AN EMPLOYER OR FROM ANY INVESTI-
GATION CONDUCTED UNDER THE PROVISIONS OF THIS ARTICLE SHALL BE CONFIDEN-
TIAL, EXCEPT FOR OFFICIAL PURPOSES WITHIN THE DEPARTMENT OR PURSUANT TO
OFFICIAL PROCEDURES FOR COLLECTION OF PENALTIES ASSESSED UNDER THIS
ARTICLE. NOTHING CONTAINED IN THIS SUBDIVISION SHALL PREVENT THE DIREC-
TOR FROM PUBLISHING OR MAKING AVAILABLE TO THE PUBLIC REASONABLE STATIS-
TICS CONCERNING THE OPERATION OF THIS ARTICLE WHEREIN THE CONTENTS OF
RETURNS ARE GROUPED INTO AGGREGATES IN SUCH A WAY THAT THE SPECIFIC
INFORMATION OF ANY EMPLOYER SHALL NOT BE DISCLOSED. NOTHING CONTAINED IN
THIS SUBDIVISION SHALL PREVENT THE DIRECTOR FROM DIVULGING INFORMATION
TO AN AUTHORIZED REPRESENTATIVE OF THE EMPLOYER OR TO ANY PERSON PURSU-
ANT TO A REQUEST OR AUTHORIZATION MADE BY THE EMPLOYER OR BY AN AUTHOR-
IZED REPRESENTATIVE OF THE EMPLOYER.
12. CIVIL PENALTIES AND FEES COLLECTED UNDER THIS ARTICLE SHALL BE
DEPOSITED WITH THE DEPARTMENT FOR PURPOSES DEDICATED TO THE ADMINIS-
TRATION OF THE PROGRAM.
13. THE DEPARTMENT MAY CHARGE THE BOARD A REASONABLE FEE FOR ITS COSTS
IN PERFORMING ITS DUTIES UNDER THIS SECTION TO THE EXTENT THAT SUCH
COSTS HAVE NOT BEEN RECOVERED FROM PENALTIES IMPOSED UNDER THIS SECTION.
14. THIS SECTION SHALL BECOME OPERATIVE NINE MONTHS AFTER THE BOARD
NOTIFIES THE DIRECTOR THAT THE PROGRAM HAS BEEN IMPLEMENTED. UPON
RECEIPT OF SUCH NOTIFICATION FROM THE BOARD, THE DEPARTMENT SHALL IMME-
DIATELY POST ON ITS INTERNET WEBSITE A NOTICE STATING THAT THIS SECTION
IS OPERATIVE AND THE DATE THAT IT IS FIRST OPERATIVE. THIS NOTICE SHALL
INCLUDE A STATEMENT THAT RATHER THAN ENROLLING EMPLOYEES IN THE PROGRAM
UNDER THIS ARTICLE, EMPLOYERS MAY SPONSOR AN ALTERNATIVE ARRANGEMENT.
S 586. DELAYED IMPLEMENTATION. IF THE BOARD DOES NOT OBTAIN ADEQUATE
FUNDS TO IMPLEMENT THE PROGRAM WITHIN THE TIME FRAME SET FORTH UNDER
THIS ARTICLE, THE BOARD MAY DELAY THE IMPLEMENTATION OF THE PROGRAM.
S 587. FEDERAL CONSIDERATIONS. THE BOARD SHALL REQUEST IN WRITING AN
OPINION OR RULING FROM THE APPROPRIATE ENTITY WITH JURISDICTION OVER THE
FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT REGARDING THE APPLICA-
BILITY OF THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT TO THE
PROGRAM. THE BOARD MAY NOT IMPLEMENT THE PROGRAM IF THE IRA ARRANGEMENTS
OFFERED UNDER THE PROGRAM FAIL TO QUALIFY FOR THE FAVORABLE FEDERAL
INCOME TAX TREATMENT ORDINARILY ACCORDED TO IRAS UNDER THE INTERNAL
REVENUE CODE OR IF IT IS DETERMINED THAT THE PROGRAM IS AN EMPLOYEE
BENEFIT PLAN AND STATE OR EMPLOYER LIABILITY IS ESTABLISHED UNDER THE
FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT.
S 3. The state finance law is amended by adding two new sections 99-x
and 99-y to read as follows:
S. 6045--A 12
S 99-X. NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND. 1. THERE
IS HEREBY ESTABLISHED WITHIN THE CUSTODY OF THE STATE COMPTROLLER, OR
HIS OR HER DESIGNEE, IN CONSULTATION WITH THE NEW YORK STATE SECURE
CHOICE SAVINGS PROGRAM BOARD, A NEW FUND TO BE KNOWN AS THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM FUND.
2. THE FUND SHALL INCLUDE THE INDIVIDUAL RETIREMENT ACCOUNTS OF ENROL-
LEES, WHICH SHALL BE ACCOUNTED FOR AS INDIVIDUAL ACCOUNTS.
3. MONEYS IN THE FUND SHALL CONSIST OF MONEYS RECEIVED FROM ENROLLEES
AND PARTICIPATING EMPLOYERS PURSUANT TO AUTOMATIC PAYROLL DEDUCTIONS AND
CONTRIBUTIONS TO SAVINGS MADE UNDER THE NEW YORK STATE SECURE CHOICE
SAVINGS PROGRAM PURSUANT TO ARTICLE 14-C OF THE RETIREMENT AND SOCIAL
SECURITY LAW.
4. THE FUND SHALL BE OPERATED IN A MANNER DETERMINED BY THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM BOARD, PROVIDED THAT THE FUND IS
OPERATED SO THAT THE ACCOUNTS OF ENROLLEES ESTABLISHED UNDER THE PROGRAM
MEET THE REQUIREMENTS FOR IRAS UNDER THE INTERNAL REVENUE CODE.
5. THE AMOUNTS DEPOSITED IN THE FUND SHALL NOT CONSTITUTE PROPERTY OF
THE STATE AND THE FUND SHALL NOT BE CONSTRUED TO BE A DEPARTMENT, INSTI-
TUTION, OR AGENCY OF THE STATE. AMOUNTS ON DEPOSIT IN THE FUND SHALL NOT
BE COMMINGLED WITH STATE FUNDS AND THE STATE SHALL HAVE NO CLAIM TO OR
AGAINST, OR INTEREST IN, SUCH FUNDS.
S 99-Y. NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND. 1. THERE IS
HEREBY ESTABLISHED WITHIN THE CUSTODY OF THE STATE COMPTROLLER, OR HIS
OR HER DESIGNEE, IN CONSULTATION WITH THE NEW YORK STATE SECURE CHOICE
SAVINGS PROGRAM BOARD, A NEW FUND TO BE KNOWN AS THE NEW YORK STATE
SECURE CHOICE ADMINISTRATIVE FUND.
2. THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD SHALL USE
MONEYS IN THE ADMINISTRATIVE FUND TO PAY FOR ADMINISTRATIVE EXPENSES IT
INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER THE NEW YORK STATE SECURE
CHOICE SAVINGS PROGRAM PURSUANT TO ARTICLE 14-C OF THE RETIREMENT AND
SOCIAL SECURITY LAW.
3. THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD SHALL USE
MONEYS IN THE ADMINISTRATIVE FUND TO COVER START-UP ADMINISTRATIVE
EXPENSES IT INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER ARTICLE 14-C
OF THE RETIREMENT AND SOCIAL SECURITY LAW.
4. THE ADMINISTRATIVE FUND MAY RECEIVE ANY GRANTS OR OTHER MONEYS
DESIGNATED FOR ADMINISTRATIVE PURPOSES FROM THE STATE, OR ANY UNIT OF
FEDERAL OR LOCAL GOVERNMENT, OR ANY OTHER PERSON, FIRM, PARTNERSHIP, OR
CORPORATION. ANY INTEREST EARNINGS THAT ARE ATTRIBUTABLE TO MONEYS IN
THE ADMINISTRATIVE FUND MUST BE DEPOSITED INTO THE ADMINISTRATIVE FUND.
S 4. This act shall take effect immediately.
co-Sponsors
(D) 15th Senate District
(D) Senate District
(D) Senate District
(D) 14th Senate District
(D) Senate District
(D, WF) 47th Senate District
(D) Senate District
(D, WF) 21st Senate District
(D, WF) Senate District
(D) 10th Senate District
2015-S6045B - Details
- Current Committee:
- Senate Finance
- Law Section:
- Retirement and Social Security Law
- Laws Affected:
- Add Art 14-C §§570 - 587, R & SS L; add §§99-aa & 99-bb, St Fin L
- Versions Introduced in 2017-2018 Legislative Session:
-
S4344
2015-S6045B - Summary
Creates a self-sufficient retirement savings program in the form of an automatic enrollment payroll deduction IRA, and establishes an administrative board responsible for promoting greater retirement savings for private sector employees in a convenient, low-cost, and transferable manner.
2015-S6045B - Sponsor Memo
BILL NUMBER: S6045B
TITLE OF BILL : An act to amend the retirement and social security
law and the state finance law, in relation to enacting the New York
state secure choice savings program act
PURPOSE OR GENERAL IDEA OF BILL :
The purpose of this is bill to create a self-sufficient retirement
savings program in the form of an automatic enrollment payroll
deduction IRA, and establish an administrative board responsible for
promoting greater retirement savings for private sector employees in a
convenient, low-cost, and transferable manner.
SUMMARY OF SPECIFIC PROVISIONS :
Section 1 titles the Act the "New York State Secure Choice Savings
Program Act".
Section 2 amends the retirement and social security law to add a new
article, 14-C.
Section 570 defines terms: program established, composition of the
board, fiduciary duty, duties of the board, risk management,
investment firms, investment options, benefits, employer and employee
information packets and disclosure forms, program implementation and
enrollment, payments, duty and liability of the state, duty and liability of participating employers, audit and reports, penalties, delayed implementation, and federal considerations. Section 571 establishes the New York State Secure Choice Savings Program, in the form of an automatic enrollment payroll deduction IRA, to administered by the New York Secure Choice Savings Board. Section 572 Establishes the New York state secure choice savings board, composed of five appointed members. Section 573 Outlines the fiduciary responsibilities and duties of the savings board. Section 574 Outlines the responsibilities and other duties of the savings board. Section 575 Requires the board to annually prepare and adopt a written statement outlining the provisions associated with risk management. Section 579 Provides for the creation and distribution of employer and employee information packets and disclosure forms. Section 580 Implements the New York state secure savings program within twenty four months after the effective date of this article. Section 582 Maintains that the state of New York shall have no duty or liability to any party for the payment of any retirement savings benefits accrued by any individual under the program. Section 584 Requires the board to submit annual financial reports and audits. Section 585 Enacts penalties for enrollment failure. Section 99-x Amends the state finance law to create the New York state secure choice savings program fund and the New York state secure choice administrative fund. JUSTIFICATION : According to a survey by the Bureau of Labor Statistics, 97% of privately owned establishments, employing 500 workers or more, offer retirement and health benefits. That percentage is halved when compared to establishments with less than 49 workers. Moreover, in 2014 President Barrack Obama suggested that states need to do more to provide workers with options to fund retirement plans due to congressional inaction. This legislation would provide employees of smaller establishment's access to retirement saving options. PRIOR LEGISLATIVE HISTORY : none FISCAL IMPLICATIONS : To Be Determined EFFECTIVE DATE : Immediately
2015-S6045B - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
6045--B
2015-2016 Regular Sessions
I N S E N A T E
September 11, 2015
___________
Introduced by Sens. SAVINO, ADDABBO, AVELLA, PANEPINTO, PERALTA -- read
twice and ordered printed, and when printed to be committed to the
Committee on Rules -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- recommitted
to the Committee on Civil Service and Pensions in accordance with
Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the retirement and social security law and the state
finance law, in relation to enacting the New York state secure choice
savings program act
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "New York state secure choice savings program act".
S 2. The retirement and social security law is amended by adding a new
article 14-C to read as follows:
ARTICLE 14-C
NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
SECTION 570. DEFINITIONS.
571. PROGRAM ESTABLISHED.
572. COMPOSITION OF THE BOARD.
573. FIDUCIARY DUTY.
574. DUTIES OF THE BOARD.
575. RISK MANAGEMENT.
576. INVESTMENT FIRMS.
577. INVESTMENT OPTIONS.
578. BENEFITS.
579. EMPLOYER AND EMPLOYEE INFORMATION PACKETS AND DISCLOSURE
FORMS.
580. PROGRAM IMPLEMENTATION AND ENROLLMENT.
581. PAYMENTS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11645-05-6
S. 6045--B 2
582. DUTY AND LIABILITY OF THE STATE.
583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS.
584. AUDIT AND REPORTS.
585. PENALTIES.
586. DELAYED IMPLEMENTATION.
587. FEDERAL CONSIDERATIONS.
S 570. DEFINITIONS. ALL TERMS SHALL HAVE THE SAME MEANING AS WHEN USED
IN A COMPARABLE CONTEXT IN THE INTERNAL REVENUE CODE. AS USED IN THIS
ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "BOARD" SHALL MEAN THE NEW YORK SECURE CHOICE SAVINGS BOARD ESTAB-
LISHED UNDER THIS ARTICLE.
2. "SUPERINTENDENT" SHALL MEAN THE SUPERINTENDENT OF THE DEPARTMENT OF
FINANCIAL SERVICES.
2-A. "DEPARTMENT" SHALL MEAN THE DEPARTMENT OF FINANCIAL SERVICES.
3. "EMPLOYEE" SHALL MEAN ANY INDIVIDUAL WHO IS EIGHTEEN YEARS OF AGE
OR OLDER, WHO IS EMPLOYED BY AN EMPLOYER, AND WHO HAS WAGES THAT ARE
ALLOCABLE TO NEW YORK STATE DURING A CALENDAR YEAR.
4. "EMPLOYER" SHALL MEAN A PERSON OR ENTITY ENGAGED IN A BUSINESS,
INDUSTRY, PROFESSION, TRADE, OR OTHER ENTERPRISE IN NEW YORK STATE,
WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT (I) HAS AT NO TIME DURING THE
PREVIOUS CALENDAR YEAR EMPLOYED FEWER THAN TWENTY-FIVE EMPLOYEES IN THE
STATE, (II) HAS BEEN IN BUSINESS AT LEAST TWO YEARS, AND (III) HAS NOT
OFFERED A QUALIFIED RETIREMENT PLAN, INCLUDING, BUT NOT LIMITED TO, A
PLAN QUALIFIED UNDER SECTIONS 401(A), 401(K), 403(A), 403(B), 408(K),
408(P) OR 457(B) OF THE INTERNAL REVENUE CODE OF 1986 IN THE PRECEDING
TWO YEARS.
5. "ENROLLEE" SHALL MEAN ANY EMPLOYER WHO IS ENROLLED IN THE PROGRAM.
6. "FUND" SHALL MEAN THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
FUND.
7. "INTERNAL REVENUE CODE" SHALL MEAN THE INTERNAL REVENUE CODE OF
1986, OR ANY SUCCESSOR LAW, IN EFFECT FOR THE CALENDAR YEAR.
8. "IRA" SHALL MEAN A ROTH IRA (INDIVIDUAL RETIREMENT ACCOUNT).
9. "PARTICIPATING EMPLOYER" SHALL MEAN AN EMPLOYER OR SMALL EMPLOYER
THAT PROVIDES A PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT AS
PROVIDED FOR BY THIS ARTICLE FOR ITS EMPLOYEES WHO ARE ENROLLEES IN THE
PROGRAM.
10. "PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT" SHALL MEAN AN
ARRANGEMENT BY WHICH A PARTICIPATING EMPLOYER ALLOWS ENROLLEES TO REMIT
PAYROLL DEDUCTION CONTRIBUTIONS TO THE PROGRAM.
11. "PROGRAM" SHALL MEAN THE NEW YORK STATE SECURE CHOICE SAVINGS
PROGRAM.
12. "SMALL EMPLOYER" SHALL MEAN A PERSON OR ENTITY ENGAGED IN A BUSI-
NESS, INDUSTRY, PROFESSION, TRADE, OR OTHER ENTERPRISE IN NEW YORK
STATE, WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT (I) EMPLOYED LESS THAN
TWENTY-FIVE EMPLOYEES AT ANY ONE TIME IN THE STATE THROUGHOUT THE PREVI-
OUS CALENDAR YEAR, OR (II) HAS BEEN IN BUSINESS LESS THAN TWO YEARS, OR
BOTH ITEMS (I) AND (II), BUT THAT NOTIFIES THE DEPARTMENT THAT IT IS
INTERESTED IN BEING A PARTICIPATING EMPLOYER.
13. "WAGES" MEANS ANY COMPENSATION WITHIN THE MEANING OF SECTION
219(F)(1) OF THE INTERNAL REVENUE CODE THAT IS RECEIVED BY AN ENROLLEE
FROM A PARTICIPATING EMPLOYER DURING THE CALENDAR YEAR.
S 571. PROGRAM ESTABLISHED. A RETIREMENT SAVINGS PROGRAM IN THE FORM
OF AN AUTOMATIC ENROLLMENT PAYROLL DEDUCTION IRA, KNOWN AS THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM, IS HEREBY ESTABLISHED AND SHALL BE
ADMINISTERED BY THE BOARD FOR THE PURPOSE OF PROMOTING GREATER RETIRE-
S. 6045--B 3
MENT SAVINGS FOR PRIVATE-SECTOR EMPLOYEES IN A CONVENIENT, LOW-COST, AND
PORTABLE MANNER.
S 572. COMPOSITION OF THE BOARD. THERE IS HEREBY CREATED THE NEW YORK
STATE SECURE CHOICE SAVINGS BOARD.
1. THE BOARD SHALL CONSIST OF THE FOLLOWING EIGHT MEMBERS:
(A) THE SUPERINTENDENT, OR HIS OR HER DESIGNEE, WHO SHALL SERVE AS
CHAIR;
(B) THE STATE COMPTROLLER, OR HIS OR HER DESIGNEE;
(C) TWO PUBLIC REPRESENTATIVES WITH EXPERTISE IN RETIREMENT SAVINGS
PLAN ADMINISTRATION OR INVESTMENT, OR BOTH, APPOINTED BY THE GOVERNOR;
(D) A REPRESENTATIVE OF PARTICIPATING EMPLOYERS, APPOINTED BY THE
GOVERNOR;
(E) A REPRESENTATIVE OF ENROLLEES, APPOINTED BY THE GOVERNOR;
(F) THE CHAIR OF THE ASSEMBLY GOVERNMENTAL EMPLOYEES COMMITTEE; AND
(G) THE CHAIR OF THE SENATE CIVIL SERVICE AND PENSION COMMITTEE.
2. MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION BUT MAY BE
REIMBURSED FOR NECESSARY TRAVEL EXPENSES INCURRED IN CONNECTION WITH
THEIR BOARD DUTIES FROM FUNDS APPROPRIATED FOR THE PURPOSE.
3. THE INITIAL APPOINTMENTS FOR THE GOVERNOR'S APPOINTEES SHALL BE AS
FOLLOWS: ONE PUBLIC REPRESENTATIVE FOR FOUR YEARS; ONE PUBLIC REPRESEN-
TATIVE FOR TWO YEARS; THE REPRESENTATIVE OF PARTICIPATING EMPLOYERS FOR
THREE YEARS; AND THE REPRESENTATIVE OF ENROLLEES FOR ONE YEAR. THEREAFT-
ER, ALL THE GOVERNOR'S APPOINTEES SHALL BE FOR TERMS OF FOUR YEARS.
4. A VACANCY IN THE TERM OF AN APPOINTED BOARD MEMBER SHALL BE FILLED
FOR THE BALANCE OF THE UNEXPIRED TERM IN THE SAME MANNER AS THE ORIGINAL
APPOINTMENT.
5. EACH APPOINTMENT BY THE GOVERNOR SHALL BE SUBJECT TO APPROVAL BY
THE SUPERINTENDENT, WHO, UPON APPROVAL, SHALL CERTIFY HIS OR HER
APPROVAL TO THE SECRETARY OF STATE.
S 573. FIDUCIARY DUTY. THE BOARD, THE INDIVIDUAL MEMBERS OF THE BOARD,
THE TRUSTEES, ANY OTHER AGENTS APPOINTED OR ENGAGED BY THE BOARD, AND
ALL PERSONS SERVING AS PROGRAM STAFF SHALL DISCHARGE THEIR DUTIES WITH
RESPECT TO THE PROGRAM SOLELY IN THE INTEREST OF THE PROGRAM'S ENROLLEES
AND BENEFICIARIES AS FOLLOWS:
1. FOR THE EXCLUSIVE PURPOSES OF PROVIDING BENEFITS TO ENROLLEES AND
BENEFICIARIES AND DEFRAYING REASONABLE EXPENSES OF ADMINISTERING THE
PROGRAM;
2. BY INVESTING WITH THE CARE, SKILL, PRUDENCE, AND DILIGENCE UNDER
THE PREVAILING CIRCUMSTANCES THAT A PRUDENT PERSON ACTING IN A LIKE
CAPACITY AND FAMILIAR WITH THOSE MATTERS WOULD USE IN THE CONDUCT OF AN
ENTERPRISE OF A LIKE CHARACTER AND WITH LIKE AIMS; AND
3. BY USING ANY CONTRIBUTIONS PAID BY EMPLOYEES AND EMPLOYERS INTO THE
TRUST EXCLUSIVELY FOR THE PURPOSE OF PAYING BENEFITS TO THE ENROLLEES OF
THE PROGRAM, FOR THE COST OF ADMINISTRATION OF THE PROGRAM, AND FOR
INVESTMENTS MADE FOR THE BENEFIT OF THE PROGRAM.
S 574. DUTIES OF THE BOARD. IN ADDITION TO THE OTHER DUTIES AND
RESPONSIBILITIES STATED IN THIS ARTICLE, THE BOARD SHALL:
1. CAUSE THE PROGRAM TO BE DESIGNED, ESTABLISHED AND OPERATED IN A
MANNER THAT:
(A) ACCORDS WITH BEST PRACTICES FOR RETIREMENT SAVINGS VEHICLES;
(B) MAXIMIZES PARTICIPATION, SAVINGS, AND SOUND INVESTMENT PRACTICES;
(C) MAXIMIZES SIMPLICITY, INCLUDING EASE OF ADMINISTRATION FOR PARTIC-
IPATING EMPLOYERS AND ENROLLEES;
(D) PROVIDES AN EFFICIENT PRODUCT TO ENROLLEES BY POOLING INVESTMENT
FUNDS;
(E) ENSURES THE PORTABILITY OF BENEFITS; AND
S. 6045--B 4
(F) PROVIDES FOR THE DEACCUMULATION OF ENROLLEE ASSETS IN A MANNER
THAT MAXIMIZES FINANCIAL SECURITY IN RETIREMENT.
2. APPOINT A TRUSTEE TO THE IRA FUND IN COMPLIANCE WITH SECTION 408 OF
THE INTERNAL REVENUE CODE.
3. EXPLORE AND ESTABLISH INVESTMENT OPTIONS, SUBJECT TO THIS ARTICLE,
THAT OFFER EMPLOYEES RETURNS ON CONTRIBUTIONS AND THE CONVERSION OF
INDIVIDUAL RETIREMENT SAVINGS ACCOUNT BALANCES TO SECURE RETIREMENT
INCOME WITHOUT INCURRING DEBT OR LIABILITIES TO THE STATE.
4. ESTABLISH THE PROCESS BY WHICH INTEREST, INVESTMENT EARNINGS, AND
INVESTMENT LOSSES ARE ALLOCATED TO INDIVIDUAL PROGRAM ACCOUNTS ON A PRO
RATA BASIS AND ARE COMPUTED AT THE INTEREST RATE ON THE BALANCE OF AN
INDIVIDUAL'S ACCOUNT.
5. MAKE AND ENTER INTO CONTRACTS NECESSARY FOR THE ADMINISTRATION OF
THE PROGRAM AND FUND, INCLUDING, BUT NOT LIMITED TO, RETAINING AND
CONTRACTING WITH INVESTMENT MANAGERS, PRIVATE FINANCIAL INSTITUTIONS,
OTHER FINANCIAL AND SERVICE PROVIDERS, CONSULTANTS, ACTUARIES, COUNSEL,
AUDITORS, THIRD-PARTY ADMINISTRATORS, AND OTHER PROFESSIONALS AS NECES-
SARY.
6. CONDUCT A REVIEW OF THE PERFORMANCE OF ANY INVESTMENT VENDORS EVERY
FOUR YEARS, INCLUDING, BUT NOT LIMITED TO, A REVIEW OF RETURNS, FEES,
AND CUSTOMER SERVICE. A COPY OF REVIEWS SHALL BE POSTED TO THE BOARD'S
INTERNET WEBSITE.
7. DETERMINE THE NUMBER AND DUTIES OF STAFF MEMBERS NEEDED TO ADMINIS-
TER THE PROGRAM AND ASSEMBLE SUCH A STAFF, INCLUDING, AS NEEDED, EMPLOY-
ING STAFF, APPOINTING A PROGRAM ADMINISTRATOR, AND ENTERING INTO
CONTRACTS WITH THE SUPERINTENDENT TO MAKE EMPLOYEES OF THE DEPARTMENT
AVAILABLE TO ADMINISTER THE PROGRAM.
8. CAUSE MONEYS IN THE FUND TO BE HELD AND INVESTED AS POOLED INVEST-
MENTS DESCRIBED IN THIS ARTICLE, WITH A VIEW TO ACHIEVING COST SAVINGS
THROUGH EFFICIENCIES AND ECONOMIES OF SCALE.
9. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN ENROLLEE IS ABLE TO
CONTRIBUTE A PORTION OF HIS OR HER WAGES TO THE PROGRAM FOR AUTOMATIC
DEPOSIT OF THOSE CONTRIBUTIONS AND THE PROCESS BY WHICH THE PARTICIPAT-
ING EMPLOYER PROVIDES A PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT
TO FORWARD THOSE CONTRIBUTIONS AND RELATED INFORMATION TO THE PROGRAM,
INCLUDING, BUT NOT LIMITED TO, CONTRACTING WITH FINANCIAL SERVICE COMPA-
NIES AND THIRD-PARTY ADMINISTRATORS WITH THE CAPABILITY TO RECEIVE AND
PROCESS EMPLOYEE INFORMATION AND CONTRIBUTIONS FOR PAYROLL DEPOSIT
RETIREMENT SAVINGS ARRANGEMENTS OR SIMILAR ARRANGEMENTS.
10. DESIGN AND ESTABLISH THE PROCESS FOR ENROLLMENT INCLUDING THE
PROCESS BY WHICH AN EMPLOYEE CAN OPT NOT TO PARTICIPATE IN THE PROGRAM,
SELECT A CONTRIBUTION LEVEL, SELECT AN INVESTMENT OPTION, AND TERMINATE
PARTICIPATION IN THE PROGRAM.
11. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN INDIVIDUAL MAY
VOLUNTARILY ENROLL IN AND MAKE CONTRIBUTIONS TO THE PROGRAM.
12. ACCEPT ANY GRANTS, APPROPRIATIONS, OR OTHER MONEYS FROM THE STATE,
ANY UNIT OF FEDERAL, STATE, OR LOCAL GOVERNMENT, OR ANY OTHER PERSON,
FIRM, PARTNERSHIP, OR CORPORATION SOLELY FOR DEPOSIT INTO THE FUND,
WHETHER FOR INVESTMENT OR ADMINISTRATIVE PURPOSES.
13. EVALUATE THE NEED FOR, AND PROCURE AS NEEDED, INSURANCE AGAINST
ANY AND ALL LOSS IN CONNECTION WITH THE PROPERTY, ASSETS, OR ACTIVITIES
OF THE PROGRAM, AND INDEMNIFY AS NEEDED EACH MEMBER OF THE BOARD FROM
PERSONAL LOSS OR LIABILITY RESULTING FROM A MEMBER'S ACTION OR INACTION
AS A MEMBER OF THE BOARD.
14. MAKE PROVISIONS FOR THE PAYMENT OF ADMINISTRATIVE COSTS AND
EXPENSES FOR THE CREATION, MANAGEMENT, AND OPERATION OF THE PROGRAM.
S. 6045--B 5
SUBJECT TO APPROPRIATION, THE STATE MAY PAY ADMINISTRATIVE COSTS ASSOCI-
ATED WITH THE CREATION AND MANAGEMENT OF THE PROGRAM UNTIL SUFFICIENT
ASSETS ARE AVAILABLE IN THE FUND FOR THAT PURPOSE. THEREAFTER, ALL
ADMINISTRATIVE COSTS OF THE FUND, INCLUDING REPAYMENT OF ANY START-UP
FUNDS PROVIDED BY THE STATE, SHALL BE PAID ONLY OUT OF MONEYS ON DEPOSIT
THEREIN. HOWEVER, PRIVATE FUNDS OR FEDERAL FUNDING RECEIVED IN ORDER TO
IMPLEMENT THE PROGRAM UNTIL THE FUND IS SELF-SUSTAINING SHALL NOT BE
REPAID UNLESS THOSE FUNDS WERE OFFERED CONTINGENT UPON THE PROMISE OF
SUCH REPAYMENT. THE BOARD SHALL KEEP ANNUAL ADMINISTRATIVE EXPENSES AS
LOW AS POSSIBLE, BUT IN NO EVENT SHALL THEY EXCEED 0.75% OF THE TOTAL
TRUST BALANCE.
15. ALLOCATE ADMINISTRATIVE FEES TO INDIVIDUAL RETIREMENT ACCOUNTS IN
THE PROGRAM ON A PRO RATA BASIS.
16. SET MINIMUM AND MAXIMUM CONTRIBUTION LEVELS IN ACCORDANCE WITH
LIMITS ESTABLISHED FOR IRAS BY THE INTERNAL REVENUE CODE.
17. FACILITATE EDUCATION AND OUTREACH TO EMPLOYERS AND EMPLOYEES.
18. FACILITATE COMPLIANCE BY THE PROGRAM WITH ALL APPLICABLE REQUIRE-
MENTS FOR THE PROGRAM UNDER THE INTERNAL REVENUE CODE, INCLUDING TAX
QUALIFICATION REQUIREMENTS OR ANY OTHER APPLICABLE LAW AND ACCOUNTING
REQUIREMENTS.
19. CARRY OUT THE DUTIES AND OBLIGATIONS OF THE PROGRAM IN AN EFFEC-
TIVE, EFFICIENT, AND LOW-COST MANNER.
20. EXERCISE ANY AND ALL OTHER POWERS REASONABLY NECESSARY FOR THE
EFFECTUATION OF THE PURPOSES, OBJECTIVES, AND PROVISIONS OF THIS ARTICLE
PERTAINING TO THE PROGRAM.
21. DEPOSIT INTO THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND
ALL GRANTS, GIFTS, DONATIONS, FEES, AND EARNINGS FROM INVESTMENTS FROM
THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND THAT ARE USED TO
RECOVER ADMINISTRATIVE COSTS. ALL EXPENSES OF THE BOARD SHALL BE PAID
FROM THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND.
S 575. RISK MANAGEMENT. THE BOARD SHALL ANNUALLY PREPARE AND ADOPT A
WRITTEN STATEMENT OF INVESTMENT POLICY THAT INCLUDES A RISK MANAGEMENT
AND OVERSIGHT PROGRAM. THIS INVESTMENT POLICY SHALL PROHIBIT THE BOARD,
PROGRAM, AND FUND FROM BORROWING FOR INVESTMENT PURPOSES. THE RISK
MANAGEMENT AND OVERSIGHT PROGRAM SHALL BE DESIGNED TO ENSURE THAT AN
EFFECTIVE RISK MANAGEMENT SYSTEM IS IN PLACE TO MONITOR THE RISK LEVELS
OF THE PROGRAM AND FUND PORTFOLIO, TO ENSURE THAT THE RISKS TAKEN ARE
PRUDENT AND PROPERLY MANAGED, TO PROVIDE AN INTEGRATED PROCESS FOR OVER-
ALL RISK MANAGEMENT, AND TO ASSESS INVESTMENT RETURNS AS WELL AS RISK TO
DETERMINE IF THE RISKS TAKEN ARE ADEQUATELY COMPENSATED COMPARED TO
APPLICABLE PERFORMANCE BENCHMARKS AND STANDARDS. THE BOARD SHALL CONSID-
ER THE STATEMENT OF INVESTMENT POLICY AND ANY CHANGES IN THE INVESTMENT
POLICY AT A PUBLIC HEARING.
S 576. INVESTMENT FIRMS. 1. THE BOARD SHALL ENGAGE, AFTER AN OPEN BID
PROCESS, AN INVESTMENT MANAGER OR MANAGERS TO INVEST THE FUND AND ANY
OTHER ASSETS OF THE PROGRAM. MONEYS IN THE FUND MAY BE INVESTED OR REIN-
VESTED BY THE SUPERINTENDENT OR MAY BE INVESTED IN WHOLE OR IN PART. IN
SELECTING THE INVESTMENT MANAGER OR MANAGERS, THE BOARD SHALL TAKE INTO
CONSIDERATION AND GIVE WEIGHT TO THE INVESTMENT MANAGER'S FEES AND
CHARGES IN ORDER TO REDUCE THE PROGRAM'S ADMINISTRATIVE EXPENSES.
2. THE INVESTMENT MANAGER OR MANAGERS SHALL COMPLY WITH ANY AND ALL
APPLICABLE FEDERAL AND STATE LAWS, RULES, AND REGULATIONS, AS WELL AS
ANY AND ALL RULES, POLICIES, AND GUIDELINES PROMULGATED BY THE BOARD
WITH RESPECT TO THE PROGRAM AND THE INVESTMENT OF THE FUND, INCLUDING,
BUT NOT LIMITED TO, THE INVESTMENT POLICY.
S. 6045--B 6
3. THE INVESTMENT MANAGER OR MANAGERS SHALL PROVIDE SUCH REPORTS AS
THE BOARD DEEMS NECESSARY FOR THE BOARD TO OVERSEE EACH INVESTMENT
MANAGER'S PERFORMANCE AND THE PERFORMANCE OF THE FUND.
S 577. INVESTMENT OPTIONS. 1. THE BOARD SHALL ESTABLISH AS AN INVEST-
MENT OPTION A LIFE-CYCLE FUND WITH A TARGET DATE BASED UPON THE AGE OF
THE ENROLLEE. THIS SHALL BE THE DEFAULT INVESTMENT OPTION FOR ENROLLEES
WHO FAIL TO ELECT AN INVESTMENT OPTION UNLESS AND UNTIL THE BOARD DESIG-
NATES BY RULE A NEW INVESTMENT OPTION AS THE DEFAULT.
2. THE BOARD MAY ALSO ESTABLISH ANY OR ALL OF THE FOLLOWING ADDITIONAL
INVESTMENT OPTIONS:
(A) A CONSERVATIVE PRINCIPAL PROTECTION FUND;
(B) A GROWTH FUND;
(C) A SECURE RETURN FUND WHOSE PRIMARY OBJECTIVE IS THE PRESERVATION
OF THE SAFETY OF PRINCIPAL AND THE PROVISION OF A STABLE AND LOW-RISK
RATE OF RETURN; IF THE BOARD ELECTS TO ESTABLISH A SECURE RETURN FUND,
THE BOARD MAY PROCURE ANY INSURANCE, ANNUITY, OR OTHER PRODUCT TO INSURE
THE VALUE OF INDIVIDUALS' ACCOUNTS AND GUARANTEE A RATE OF RETURN; THE
COST OF SUCH FUNDING MECHANISM SHALL BE PAID OUT OF THE FUND; UNDER NO
CIRCUMSTANCES SHALL THE BOARD, PROGRAM, FUND, THE STATE, OR ANY PARTIC-
IPATING EMPLOYER ASSUME ANY LIABILITY FOR INVESTMENT OR ACTUARIAL RISK;
THE BOARD SHALL DETERMINE WHETHER TO ESTABLISH SUCH INVESTMENT OPTIONS
BASED UPON AN ANALYSIS OF THEIR COST, RISK PROFILE, BENEFIT LEVEL,
FEASIBILITY, AND EASE OF IMPLEMENTATION; OR
(D) AN ANNUITY FUND.
3. IF THE BOARD ELECTS TO ESTABLISH A SECURE RETURN FUND, THE BOARD
SHALL THEN DETERMINE WHETHER SUCH OPTION SHALL REPLACE THE TARGET DATE
OR LIFE-CYCLE FUND AS THE DEFAULT INVESTMENT OPTION FOR ENROLLEES WHO DO
NOT ELECT AN INVESTMENT OPTION. IN MAKING SUCH DETERMINATION, THE BOARD
SHALL CONSIDER THE COST, RISK PROFILE, BENEFIT LEVEL, AND EASE OF
ENROLLMENT IN THE SECURE RETURN FUND. THE BOARD MAY AT ANY TIME THERE-
AFTER REVISIT THIS QUESTION AND, BASED UPON AN ANALYSIS OF THESE CRITE-
RIA, ESTABLISH EITHER THE SECURE RETURN FUND OR THE LIFE-CYCLE FUND AS
THE DEFAULT FOR ENROLLEES WHO DO NOT ELECT AN INVESTMENT OPTION.
S 578. BENEFITS. INTEREST, INVESTMENT EARNINGS, AND INVESTMENT LOSSES
SHALL BE ALLOCATED TO INDIVIDUAL PROGRAM ACCOUNTS AS ESTABLISHED BY THE
BOARD PURSUANT TO THIS ARTICLE. AN INDIVIDUAL'S RETIREMENT SAVINGS BENE-
FIT UNDER THE PROGRAM SHALL BE AN AMOUNT EQUAL TO THE BALANCE IN THE
INDIVIDUAL'S PROGRAM ACCOUNT ON THE DATE THE RETIREMENT SAVINGS BENEFIT
BECOMES PAYABLE. THE STATE SHALL HAVE NO LIABILITY FOR THE PAYMENT OF
ANY BENEFIT TO ANY PARTICIPANT IN THE PROGRAM.
S 579. EMPLOYER AND EMPLOYEE INFORMATION PACKETS AND DISCLOSURE FORMS.
1. PRIOR TO THE OPENING OF THE PROGRAM FOR ENROLLMENT, THE BOARD SHALL
DESIGN AND DISSEMINATE TO ALL EMPLOYERS AN EMPLOYER INFORMATION PACKET
AND AN EMPLOYEE INFORMATION PACKET, WHICH SHALL INCLUDE BACKGROUND
INFORMATION ON THE PROGRAM, APPROPRIATE DISCLOSURES FOR EMPLOYEES, AND
INFORMATION REGARDING THE VENDOR INTERNET WEBSITE DESCRIBED.
2. THE BOARD SHALL PROVIDE FOR THE CONTENTS OF BOTH THE EMPLOYEE
INFORMATION PACKET AND THE EMPLOYER INFORMATION PACKET.
3. THE EMPLOYEE INFORMATION PACKET SHALL INCLUDE A DISCLOSURE FORM.
THE DISCLOSURE FORM SHALL EXPLAIN, BUT NOT BE LIMITED TO, ALL OF THE
FOLLOWING:
(A) THE BENEFITS AND RISKS ASSOCIATED WITH MAKING CONTRIBUTIONS TO THE
PROGRAM;
(B) THE MECHANICS OF HOW TO MAKE CONTRIBUTIONS TO THE PROGRAM;
(C) HOW TO OPT OUT OF THE PROGRAM;
S. 6045--B 7
(D) HOW TO PARTICIPATE IN THE PROGRAM WITH A LEVEL OF EMPLOYEE
CONTRIBUTIONS OTHER THAN THREE PERCENT;
(E) THE PROCESS FOR WITHDRAWAL OF RETIREMENT SAVINGS;
(F) HOW TO OBTAIN ADDITIONAL INFORMATION ABOUT THE PROGRAM;
(G) THAT EMPLOYEES SEEKING FINANCIAL ADVICE SHOULD CONTACT FINANCIAL
ADVISORS, THAT PARTICIPATING EMPLOYERS ARE NOT IN A POSITION TO PROVIDE
FINANCIAL ADVICE, AND THAT PARTICIPATING EMPLOYERS ARE NOT LIABLE FOR
DECISIONS EMPLOYEES MAKE PURSUANT TO THIS ARTICLE;
(H) THAT THE PROGRAM IS NOT AN EMPLOYER-SPONSORED RETIREMENT PLAN; AND
(I) THAT THE PROGRAM FUND IS NOT GUARANTEED BY THE STATE.
4. THE EMPLOYEE INFORMATION PACKET SHALL ALSO INCLUDE A FORM FOR AN
EMPLOYEE TO NOTE HIS OR HER DECISION TO OPT OUT OF PARTICIPATION IN THE
PROGRAM OR ELECT TO PARTICIPATE WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS
OTHER THAN THREE PERCENT.
5. PARTICIPATING EMPLOYERS SHALL SUPPLY THE EMPLOYEE INFORMATION PACK-
ET TO EMPLOYEES UPON LAUNCH OF THE PROGRAM. PARTICIPATING EMPLOYERS
SHALL SUPPLY THE EMPLOYEE INFORMATION PACKET TO NEW EMPLOYEES AT THE
TIME OF HIRING, AND NEW EMPLOYEES MAY OPT OUT OF PARTICIPATION IN THE
PROGRAM OR ELECT TO PARTICIPATE WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS
OTHER THAN THREE PERCENT AT THAT TIME.
S 580. PROGRAM IMPLEMENTATION AND ENROLLMENT. EXCEPT AS OTHERWISE
PROVIDED IN THIS ARTICLE, THE PROGRAM SHALL BE IMPLEMENTED, AND ENROLL-
MENT OF EMPLOYEES SHALL BEGIN, WITHIN TWENTY-FOUR MONTHS AFTER THE
EFFECTIVE DATE OF THIS ARTICLE. THE PROVISIONS OF THIS SECTION SHALL BE
IN FORCE AFTER THE BOARD OPENS THE PROGRAM FOR ENROLLMENT.
1. EACH EMPLOYER SHALL ESTABLISH A PAYROLL DEPOSIT RETIREMENT SAVINGS
ARRANGEMENT TO ALLOW EACH EMPLOYEE TO PARTICIPATE IN THE PROGRAM AT MOST
NINE MONTHS AFTER THE BOARD OPENS THE PROGRAM FOR ENROLLMENT.
2. EMPLOYERS SHALL AUTOMATICALLY ENROLL IN THE PROGRAM EACH OF THEIR
EMPLOYEES WHO HAS NOT OPTED OUT OF PARTICIPATION IN THE PROGRAM USING
THE FORM DESCRIBED IN THIS ARTICLE AND SHALL PROVIDE PAYROLL DEDUCTION
RETIREMENT SAVINGS ARRANGEMENTS FOR SUCH EMPLOYEES AND DEPOSIT, ON
BEHALF OF SUCH EMPLOYEES, THESE FUNDS INTO THE PROGRAM. SMALL EMPLOYERS
MAY, BUT ARE NOT REQUIRED TO, PROVIDE PAYROLL DEDUCTION RETIREMENT
SAVINGS ARRANGEMENTS FOR EACH EMPLOYEE WHO ELECTS TO PARTICIPATE IN THE
PROGRAM.
3. ENROLLEES SHALL HAVE THE ABILITY TO SELECT A CONTRIBUTION LEVEL
INTO THE FUND. THIS LEVEL MAY BE EXPRESSED AS A PERCENTAGE OF WAGES OR
AS A DOLLAR AMOUNT UP TO THE DEDUCTIBLE AMOUNT FOR THE ENROLLEE'S TAXA-
BLE YEAR UNDER SECTION 219(B)(1)(A) OF THE INTERNAL REVENUE CODE. ENROL-
LEES MAY CHANGE THEIR CONTRIBUTION LEVEL AT ANY TIME, SUBJECT TO RULES
PROMULGATED BY THE BOARD. IF AN ENROLLEE FAILS TO SELECT A CONTRIBUTION
LEVEL USING THE FORM DESCRIBED IN THIS ARTICLE, THEN HE OR SHE SHALL
CONTRIBUTE THREE PERCENT OF HIS OR HER WAGES TO THE PROGRAM, PROVIDED
THAT SUCH CONTRIBUTIONS SHALL NOT CAUSE THE ENROLLEE'S TOTAL CONTRIB-
UTIONS TO IRAS FOR THE YEAR TO EXCEED THE DEDUCTIBLE AMOUNT FOR THE
ENROLLEE'S TAXABLE YEAR UNDER SECTION 219(B)(1)(A) OF THE INTERNAL
REVENUE CODE.
4. ENROLLEES MAY SELECT AN INVESTMENT OPTION FROM THE PERMITTED
INVESTMENT OPTIONS LISTED IN THIS ARTICLE. ENROLLEES MAY CHANGE THEIR
INVESTMENT OPTION AT ANY TIME, SUBJECT TO RULES PROMULGATED BY THE
BOARD. IN THE EVENT THAT AN ENROLLEE FAILS TO SELECT AN INVESTMENT
OPTION, THAT ENROLLEE SHALL BE PLACED IN THE INVESTMENT OPTION SELECTED
BY THE BOARD AS THE DEFAULT UNDER THIS ARTICLE. IF THE BOARD HAS NOT
SELECTED A DEFAULT INVESTMENT OPTION UNDER THIS ARTICLE, THEN AN ENROL-
S. 6045--B 8
LEE WHO FAILS TO SELECT AN INVESTMENT OPTION SHALL BE PLACED IN THE
LIFE-CYCLE FUND INVESTMENT OPTION.
5. FOLLOWING INITIAL IMPLEMENTATION OF THE PROGRAM PURSUANT TO THIS
SECTION, AT LEAST ONCE EVERY YEAR, PARTICIPATING EMPLOYERS SHALL DESIG-
NATE AN OPEN ENROLLMENT PERIOD DURING WHICH EMPLOYEES WHO PREVIOUSLY
OPTED OUT OF THE PROGRAM MAY ENROLL IN THE PROGRAM.
6. AN EMPLOYEE WHO OPTS OUT OF THE PROGRAM WHO SUBSEQUENTLY WANTS TO
PARTICIPATE THROUGH THE PARTICIPATING EMPLOYER'S PAYROLL DEPOSIT RETIRE-
MENT SAVINGS ARRANGEMENT MAY ONLY ENROLL DURING THE PARTICIPATING
EMPLOYER'S DESIGNATED OPEN ENROLLMENT PERIOD OR IF PERMITTED BY THE
PARTICIPATING EMPLOYER AT AN EARLIER TIME.
7. EMPLOYERS SHALL RETAIN THE OPTION AT ALL TIMES TO SET UP ANY TYPE
OF EMPLOYER-SPONSORED RETIREMENT PLAN OR TO OFFER AN AUTOMATIC ENROLL-
MENT PAYROLL DEDUCTION IRA, INSTEAD OF HAVING A PAYROLL DEPOSIT RETIRE-
MENT SAVINGS ARRANGEMENT TO ALLOW EMPLOYEE PARTICIPATION IN THE PROGRAM.
8. AN EMPLOYEE MAY TERMINATE HIS OR HER PARTICIPATION IN THE PROGRAM
AT ANY TIME IN A MANNER PRESCRIBED BY THE BOARD.
9. THE BOARD SHALL ESTABLISH AND MAINTAIN AN INTERNET WEBSITE DESIGNED
TO ASSIST EMPLOYERS IN IDENTIFYING PRIVATE SECTOR PROVIDERS OF RETIRE-
MENT ARRANGEMENTS THAT CAN BE SET UP BY THE EMPLOYER RATHER THAN ALLOW-
ING EMPLOYEE PARTICIPATION IN THE PROGRAM UNDER THIS ARTICLE; HOWEVER,
THE BOARD SHALL ONLY ESTABLISH AND MAINTAIN AN INTERNET WEBSITE UNDER
THIS SUBDIVISION IF THERE IS SUFFICIENT INTEREST IN SUCH AN INTERNET
WEBSITE BY PRIVATE SECTOR PROVIDERS AND IF THE PRIVATE SECTOR PROVIDERS
FURNISH THE FUNDING NECESSARY TO ESTABLISH AND MAINTAIN THE INTERNET
WEBSITE. THE BOARD MUST PROVIDE PUBLIC NOTICE OF THE AVAILABILITY OF AND
THE PROCESS FOR INCLUSION ON THE INTERNET WEBSITE BEFORE IT BECOMES
PUBLICLY AVAILABLE. THIS INTERNET WEBSITE MUST BE AVAILABLE TO THE
PUBLIC BEFORE THE BOARD OPENS THE PROGRAM FOR ENROLLMENT, AND THE INTER-
NET WEBSITE ADDRESS MUST BE INCLUDED ON ANY INTERNET WEBSITE POSTING OR
OTHER MATERIALS REGARDING THE PROGRAM OFFERED TO THE PUBLIC BY THE
BOARD.
S 581. PAYMENTS. EMPLOYEE CONTRIBUTIONS DEDUCTED BY THE PARTICIPATING
EMPLOYER THROUGH PAYROLL DEDUCTION SHALL BE PAID BY THE PARTICIPATING
EMPLOYER TO THE FUND USING ONE OR MORE PAYROLL DEPOSIT RETIREMENT
SAVINGS ARRANGEMENTS ESTABLISHED BY THE BOARD UNDER THIS ARTICLE,
EITHER:
1. ON OR BEFORE THE LAST DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH
THE COMPENSATION OTHERWISE WOULD HAVE BEEN PAYABLE TO THE EMPLOYEE IN
CASH; OR
2. BEFORE SUCH LATER DEADLINE PRESCRIBED BY THE BOARD FOR MAKING SUCH
PAYMENTS, BUT NOT LATER THAN THE DUE DATE FOR THE DEPOSIT OF TAX
REQUIRED TO BE DEDUCTED AND WITHHELD RELATING TO COLLECTION OF INCOME
TAX AT SOURCE ON WAGES OR FOR THE DEPOSIT OF TAX REQUIRED TO BE PAID
UNDER THE UNEMPLOYMENT INSURANCE SYSTEM FOR THE PAYROLL PERIOD TO WHICH
SUCH PAYMENTS RELATE.
S 582. DUTY AND LIABILITY OF THE STATE. 1. THE STATE SHALL HAVE NO
DUTY OR LIABILITY TO ANY PARTY FOR THE PAYMENT OF ANY RETIREMENT SAVINGS
BENEFITS ACCRUED BY ANY INDIVIDUAL UNDER THE PROGRAM. ANY FINANCIAL
LIABILITY FOR THE PAYMENT OF RETIREMENT SAVINGS BENEFITS IN EXCESS OF
FUNDS AVAILABLE UNDER THE PROGRAM SHALL BE BORNE SOLELY BY THE ENTITIES
WITH WHOM THE BOARD CONTRACTS TO PROVIDE INSURANCE TO PROTECT THE VALUE
OF THE PROGRAM.
2. NO STATE BOARD, COMMISSION, OR AGENCY, OR ANY OFFICER, EMPLOYEE, OR
MEMBER THEREOF IS LIABLE FOR ANY LOSS OR DEFICIENCY RESULTING FROM
S. 6045--B 9
PARTICULAR INVESTMENTS SELECTED UNDER THIS ARTICLE, EXCEPT FOR ANY
LIABILITY THAT ARISES OUT OF A BREACH OF FIDUCIARY DUTY.
S 583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS. 1. PARTICIPAT-
ING EMPLOYERS SHALL NOT HAVE ANY LIABILITY FOR AN EMPLOYEE'S DECISION TO
PARTICIPATE IN, OR OPT OUT OF, THE PROGRAM OR FOR THE INVESTMENT DECI-
SIONS OF THE BOARD OR OF ANY ENROLLEE.
2. A PARTICIPATING EMPLOYER SHALL NOT BE A FIDUCIARY, OR CONSIDERED TO
BE A FIDUCIARY, OVER THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT
BEAR RESPONSIBILITY FOR THE ADMINISTRATION, INVESTMENT, OR INVESTMENT
PERFORMANCE OF THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT BE LIABLE
WITH REGARD TO INVESTMENT RETURNS, PROGRAM DESIGN, AND BENEFITS PAID TO
PROGRAM PARTICIPANTS.
S 584. AUDIT AND REPORTS. 1. THE BOARD SHALL ANNUALLY SUBMIT:
(A) AN AUDITED FINANCIAL REPORT, PREPARED IN ACCORDANCE WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES, ON THE OPERATIONS OF THE PROGRAM DURING
EACH CALENDAR YEAR BY JULY FIRST OF THE FOLLOWING YEAR TO THE GOVERNOR,
THE COMPTROLLER, THE SUPERINTENDENT AND THE SENATE AND ASSEMBLY; AND
(B) A REPORT PREPARED BY THE BOARD, WHICH SHALL INCLUDE, BUT IS NOT
LIMITED TO, A SUMMARY OF THE BENEFITS PROVIDED BY THE PROGRAM, INCLUDING
THE NUMBER OF ENROLLEES IN THE PROGRAM, THE PERCENTAGE AND AMOUNTS OF
INVESTMENT OPTIONS AND RATES OF RETURN, AND SUCH OTHER INFORMATION THAT
IS RELEVANT TO MAKE A FULL, FAIR, AND EFFECTIVE DISCLOSURE OF THE OPER-
ATIONS OF THE PROGRAM AND THE FUND. THE ANNUAL AUDIT SHALL BE MADE BY AN
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT AND SHALL INCLUDE, BUT IS NOT
LIMITED TO, DIRECT AND INDIRECT COSTS ATTRIBUTABLE TO THE USE OF OUTSIDE
CONSULTANTS, INDEPENDENT CONTRACTORS, AND ANY OTHER PERSONS WHO ARE NOT
STATE EMPLOYEES FOR THE ADMINISTRATION OF THE PROGRAM.
2. IN ADDITION TO ANY OTHER STATEMENTS OR REPORTS REQUIRED BY LAW, THE
BOARD SHALL PROVIDE PERIODIC REPORTS AT LEAST ANNUALLY TO PARTICIPATING
EMPLOYERS, REPORTING THE NAMES OF EACH ENROLLEE EMPLOYED BY THE PARTIC-
IPATING EMPLOYER AND THE AMOUNTS OF CONTRIBUTIONS MADE BY THE PARTIC-
IPATING EMPLOYER ON BEHALF OF EACH EMPLOYEE DURING THE REPORTING PERIOD,
AS WELL AS TO ENROLLEES, REPORTING CONTRIBUTIONS AND INVESTMENT INCOME
ALLOCATED TO, WITHDRAWALS FROM, AND BALANCES IN THEIR PROGRAM ACCOUNTS
FOR THE REPORTING PERIOD. SUCH REPORTS MAY INCLUDE ANY OTHER INFORMATION
REGARDING THE PROGRAM AS THE BOARD MAY DETERMINE.
S 585. PENALTIES. 1. AN EMPLOYER WHO FAILS WITHOUT REASONABLE CAUSE TO
ENROLL AN EMPLOYEE IN THE PROGRAM WITHIN THE TIME PRESCRIBED UNDER THIS
ARTICLE SHALL BE SUBJECT TO A PENALTY EQUAL TO:
(A) TWO HUNDRED FIFTY DOLLARS FOR EACH EMPLOYEE FOR EACH CALENDAR YEAR
OR PORTION OF A CALENDAR YEAR DURING WHICH THE EMPLOYEE NEITHER WAS
ENROLLED IN THE PROGRAM NOR HAD ELECTED OUT OF PARTICIPATION IN THE
PROGRAM; OR
(B) FOR EACH CALENDAR YEAR BEGINNING AFTER THE DATE A PENALTY HAS BEEN
ASSESSED WITH RESPECT TO AN EMPLOYEE, FIVE HUNDRED DOLLARS FOR ANY
PORTION OF THAT CALENDAR YEAR DURING WHICH SUCH EMPLOYEE CONTINUES TO BE
UNENROLLED WITHOUT ELECTING OUT OF PARTICIPATION IN THE PROGRAM.
2. AFTER DETERMINING THAT AN EMPLOYER IS SUBJECT TO PENALTY UNDER THIS
SECTION FOR A CALENDAR YEAR, THE DEPARTMENT SHALL ISSUE A NOTICE OF
PROPOSED ASSESSMENT TO SUCH EMPLOYER, STATING THE NUMBER OF EMPLOYEES
FOR WHICH THE PENALTY IS PROPOSED UNDER THIS SECTION AND THE NUMBER OF
EMPLOYEES FOR WHICH THE PENALTY IS PROPOSED UNDER THIS SECTION FOR SUCH
CALENDAR YEAR, AND THE TOTAL AMOUNT OF PENALTIES PROPOSED. UPON THE
EXPIRATION OF NINETY DAYS AFTER THE DATE ON WHICH A NOTICE OF PROPOSED
ASSESSMENT WAS ISSUED, THE PENALTIES SPECIFIED THEREIN SHALL BE DEEMED
ASSESSED, UNLESS THE EMPLOYER HAD FILED A PROTEST WITH THE DEPARTMENT
S. 6045--B 10
UNDER THIS SECTION. IF, WITHIN NINETY DAYS AFTER THE DATE ON WHICH IT
WAS ISSUED, A PROTEST OF A NOTICE OF PROPOSED ASSESSMENT IS FILED UNDER
THIS SECTION, THE PENALTIES SPECIFIED THEREIN SHALL BE DEEMED ASSESSED
UPON THE DATE WHEN THE DECISION OF THE DEPARTMENT WITH RESPECT TO THE
PROTEST BECOMES FINAL.
3. A WRITTEN PROTEST AGAINST THE PROPOSED ASSESSMENT SHALL BE FILED
WITH THE DEPARTMENT IN SUCH FORM AS THE DEPARTMENT MAY BY RULE
PRESCRIBE, SETTING FORTH THE GROUNDS ON WHICH SUCH PROTEST IS BASED. IF
SUCH A PROTEST IS FILED WITHIN NINETY DAYS AFTER THE DATE THE NOTICE OF
PROPOSED ASSESSMENT IS ISSUED, THE DEPARTMENT SHALL RECONSIDER THE
PROPOSED ASSESSMENT AND SHALL GRANT THE EMPLOYER A HEARING. AS SOON AS
PRACTICABLE AFTER SUCH RECONSIDERATION AND HEARING, THE DEPARTMENT SHALL
ISSUE A NOTICE OF DECISION TO THE EMPLOYER, SETTING FORTH THE DEPART-
MENT'S FINDINGS OF FACT AND THE BASIS OF DECISION. THE DECISION OF THE
DEPARTMENT SHALL BECOME FINAL:
(A) IF NO ACTION FOR REVIEW OF THE DECISION IS COMMENCED, ON THE DATE
ON WHICH THE TIME FOR COMMENCEMENT OF SUCH REVIEW HAS EXPIRED; OR
(B) IF A TIMELY ACTION FOR REVIEW OF THE DECISION IS COMMENCED, ON THE
DATE ALL PROCEEDINGS IN COURT FOR THE REVIEW OF SUCH ASSESSMENT HAVE
TERMINATED OR THE TIME FOR THE TAKING THEREOF HAS EXPIRED WITHOUT SUCH
PROCEEDINGS BEING INSTITUTED.
4. AS SOON AS PRACTICABLE AFTER THE PENALTIES SPECIFIED IN A NOTICE OF
PROPOSED ASSESSMENT ARE DEEMED ASSESSED, THE DEPARTMENT SHALL GIVE
NOTICE TO THE EMPLOYER LIABLE FOR ANY UNPAID PORTION OF SUCH ASSESSMENT,
STATING THE AMOUNT DUE AND DEMANDING PAYMENT. IF AN EMPLOYER NEGLECTS OR
REFUSES TO PAY THE ENTIRE LIABILITY SHOWN ON THE NOTICE AND DEMAND WITH-
IN TEN DAYS AFTER THE NOTICE AND DEMAND IS ISSUED, THE UNPAID AMOUNT OF
THE LIABILITY SHALL BE A LIEN IN FAVOR OF THE STATE UPON ALL PROPERTY
AND RIGHTS TO PROPERTY, WHETHER REAL OR PERSONAL, BELONGING TO THE
EMPLOYER.
5. AN EMPLOYER WHO HAS OVERPAID A PENALTY ASSESSED UNDER THIS SECTION
MAY FILE A CLAIM FOR REFUND WITH THE DEPARTMENT. A CLAIM SHALL BE IN
WRITING IN SUCH FORM AS THE DEPARTMENT MAY BY RULE PRESCRIBE AND SHALL
STATE THE SPECIFIC GROUNDS UPON WHICH IT IS FOUNDED. AS SOON AS PRACTI-
CABLE AFTER A CLAIM FOR REFUND IS FILED, THE DEPARTMENT SHALL EXAMINE IT
AND EITHER ISSUE A REFUND OR ISSUE A NOTICE OF DENIAL. IF SUCH A PROTEST
IS FILED, THE DEPARTMENT SHALL RECONSIDER THE DENIAL AND GRANT THE
EMPLOYER A HEARING. AS SOON AS PRACTICABLE AFTER SUCH RECONSIDERATION
AND HEARING, THE DEPARTMENT SHALL ISSUE A NOTICE OF DECISION TO THE
EMPLOYER. THE NOTICE SHALL SET FORTH BRIEFLY THE DEPARTMENT'S FINDINGS
OF FACT AND THE BASIS OF DECISION IN EACH CASE DECIDED IN WHOLE OR IN
PART ADVERSELY TO THE EMPLOYER. A DENIAL OF A CLAIM FOR REFUND BECOMES
FINAL NINETY DAYS AFTER THE DATE OF ISSUANCE OF THE NOTICE OF THE DENIAL
EXCEPT FOR SUCH AMOUNTS DENIED AS TO WHICH THE EMPLOYER HAS FILED A
PROTEST WITH THE DEPARTMENT. IF A PROTEST HAS BEEN TIMELY FILED, THE
DECISION OF THE DEPARTMENT SHALL BECOME FINAL:
(A) IF NO ACTION FOR REVIEW OF THE DECISION IS COMMENCED ON THE DATE
ON WHICH THE TIME FOR COMMENCEMENT OF SUCH REVIEW HAS EXPIRED; OR
(B) IF A TIMELY ACTION FOR REVIEW OF THE DECISION IS COMMENCED ON THE
DATE ALL PROCEEDINGS IN COURT FOR THE REVIEW OF SUCH ASSESSMENT HAVE
TERMINATED OR THE TIME FOR THE TAKING THEREOF HAS EXPIRED WITHOUT SUCH
PROCEEDINGS BEING INSTITUTED.
6. NO NOTICE OF PROPOSED ASSESSMENT MAY BE ISSUED WITH RESPECT TO A
CALENDAR YEAR AFTER JUNE THIRTIETH OF THE FOURTH SUBSEQUENT CALENDAR
YEAR. NO CLAIM FOR REFUND MAY BE FILED MORE THAN ONE YEAR AFTER THE DATE
OF PAYMENT OF THE AMOUNT TO BE REFUNDED.
S. 6045--B 11
7. WHENEVER NOTICE IS REQUIRED BY THIS SECTION, IT MAY BE GIVEN OR
ISSUED BY MAILING IT BY FIRST-CLASS MAIL ADDRESSED TO THE PERSON
CONCERNED AT HIS OR HER LAST KNOWN ADDRESS.
8. ALL BOOKS AND RECORDS AND OTHER PAPERS AND DOCUMENTS RELEVANT TO
THE DETERMINATION OF ANY PENALTY DUE UNDER THIS SECTION SHALL, AT ALL
TIMES DURING BUSINESS HOURS OF THE DAY, BE SUBJECT TO INSPECTION BY THE
DEPARTMENT OR ITS DULY AUTHORIZED AGENTS AND EMPLOYEES.
9. THE DEPARTMENT MAY REQUIRE EMPLOYERS TO REPORT INFORMATION RELEVANT
TO THEIR COMPLIANCE WITH THIS ARTICLE ON TAX RETURNS AND FAILURE TO
PROVIDE THE REQUESTED INFORMATION ON A RETURN SHALL CAUSE SUCH RETURN TO
BE TREATED AS UNPROCESSABLE.
10. FOR PURPOSES OF ANY PROVISION OF STATE LAW ALLOWING THE DEPARTMENT
OR ANY OTHER AGENCY OF THIS STATE TO OFFSET AN AMOUNT OWED TO A TAXPAYER
AGAINST A TAX LIABILITY OF THAT TAXPAYER OR ALLOWING THE DEPARTMENT TO
OFFSET AN OVERPAYMENT OF TAX AGAINST ANY LIABILITY OWED TO THE STATE, A
PENALTY ASSESSED UNDER THIS SECTION SHALL BE DEEMED TO BE A TAX LIABIL-
ITY OF THE EMPLOYER AND ANY REFUND DUE TO AN EMPLOYER SHALL BE DEEMED TO
BE AN OVERPAYMENT OF TAX OF THE EMPLOYER.
11. EXCEPT AS PROVIDED IN THIS SUBDIVISION, ALL INFORMATION RECEIVED
BY THE DEPARTMENT FROM RETURNS FILED BY AN EMPLOYER OR FROM ANY INVESTI-
GATION CONDUCTED UNDER THE PROVISIONS OF THIS ARTICLE SHALL BE CONFIDEN-
TIAL, EXCEPT FOR OFFICIAL PURPOSES WITHIN THE DEPARTMENT OR PURSUANT TO
OFFICIAL PROCEDURES FOR COLLECTION OF PENALTIES ASSESSED UNDER THIS
ARTICLE. NOTHING CONTAINED IN THIS SUBDIVISION SHALL PREVENT THE DIREC-
TOR FROM PUBLISHING OR MAKING AVAILABLE TO THE PUBLIC REASONABLE STATIS-
TICS CONCERNING THE OPERATION OF THIS ARTICLE WHEREIN THE CONTENTS OF
RETURNS ARE GROUPED INTO AGGREGATES IN SUCH A WAY THAT THE SPECIFIC
INFORMATION OF ANY EMPLOYER SHALL NOT BE DISCLOSED. NOTHING CONTAINED IN
THIS SUBDIVISION SHALL PREVENT THE DIRECTOR FROM DIVULGING INFORMATION
TO AN AUTHORIZED REPRESENTATIVE OF THE EMPLOYER OR TO ANY PERSON PURSU-
ANT TO A REQUEST OR AUTHORIZATION MADE BY THE EMPLOYER OR BY AN AUTHOR-
IZED REPRESENTATIVE OF THE EMPLOYER.
12. CIVIL PENALTIES AND FEES COLLECTED UNDER THIS ARTICLE SHALL BE
DEPOSITED WITH THE DEPARTMENT FOR PURPOSES DEDICATED TO THE ADMINIS-
TRATION OF THE PROGRAM.
13. THE DEPARTMENT MAY CHARGE THE BOARD A REASONABLE FEE FOR ITS COSTS
IN PERFORMING ITS DUTIES UNDER THIS SECTION TO THE EXTENT THAT SUCH
COSTS HAVE NOT BEEN RECOVERED FROM PENALTIES IMPOSED UNDER THIS SECTION.
14. THIS SECTION SHALL BECOME OPERATIVE NINE MONTHS AFTER THE BOARD
NOTIFIES THE DIRECTOR THAT THE PROGRAM HAS BEEN IMPLEMENTED. UPON
RECEIPT OF SUCH NOTIFICATION FROM THE BOARD, THE DEPARTMENT SHALL IMME-
DIATELY POST ON ITS INTERNET WEBSITE A NOTICE STATING THAT THIS SECTION
IS OPERATIVE AND THE DATE THAT IT IS FIRST OPERATIVE. THIS NOTICE SHALL
INCLUDE A STATEMENT THAT RATHER THAN ENROLLING EMPLOYEES IN THE PROGRAM
UNDER THIS ARTICLE, EMPLOYERS MAY SPONSOR AN ALTERNATIVE ARRANGEMENT.
S 586. DELAYED IMPLEMENTATION. IF THE BOARD DOES NOT OBTAIN ADEQUATE
FUNDS TO IMPLEMENT THE PROGRAM WITHIN THE TIME FRAME SET FORTH UNDER
THIS ARTICLE, THE BOARD MAY DELAY THE IMPLEMENTATION OF THE PROGRAM.
S 587. FEDERAL CONSIDERATIONS. THE BOARD SHALL REQUEST IN WRITING AN
OPINION OR RULING FROM THE APPROPRIATE ENTITY WITH JURISDICTION OVER THE
FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT REGARDING THE APPLICA-
BILITY OF THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT TO THE
PROGRAM. THE BOARD MAY NOT IMPLEMENT THE PROGRAM IF THE IRA ARRANGEMENTS
OFFERED UNDER THE PROGRAM FAIL TO QUALIFY FOR THE FAVORABLE FEDERAL
INCOME TAX TREATMENT ORDINARILY ACCORDED TO IRAS UNDER THE INTERNAL
REVENUE CODE OR IF IT IS DETERMINED THAT THE PROGRAM IS AN EMPLOYEE
S. 6045--B 12
BENEFIT PLAN AND STATE OR EMPLOYER LIABILITY IS ESTABLISHED UNDER THE
FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT.
S 3. The state finance law is amended by adding two new sections 99-aa
and 99-bb to read as follows:
S 99-AA. NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND. 1. THERE
IS HEREBY ESTABLISHED WITHIN THE CUSTODY OF THE STATE COMPTROLLER, OR
HIS OR HER DESIGNEE, IN CONSULTATION WITH THE NEW YORK STATE SECURE
CHOICE SAVINGS PROGRAM BOARD, A NEW FUND TO BE KNOWN AS THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM FUND.
2. THE FUND SHALL INCLUDE THE INDIVIDUAL RETIREMENT ACCOUNTS OF ENROL-
LEES, WHICH SHALL BE ACCOUNTED FOR AS INDIVIDUAL ACCOUNTS.
3. MONEYS IN THE FUND SHALL CONSIST OF MONEYS RECEIVED FROM ENROLLEES
AND PARTICIPATING EMPLOYERS PURSUANT TO AUTOMATIC PAYROLL DEDUCTIONS AND
CONTRIBUTIONS TO SAVINGS MADE UNDER THE NEW YORK STATE SECURE CHOICE
SAVINGS PROGRAM PURSUANT TO ARTICLE 14-C OF THE RETIREMENT AND SOCIAL
SECURITY LAW.
4. THE FUND SHALL BE OPERATED IN A MANNER DETERMINED BY THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM BOARD, PROVIDED THAT THE FUND IS
OPERATED SO THAT THE ACCOUNTS OF ENROLLEES ESTABLISHED UNDER THE PROGRAM
MEET THE REQUIREMENTS FOR IRAS UNDER THE INTERNAL REVENUE CODE.
5. THE AMOUNTS DEPOSITED IN THE FUND SHALL NOT CONSTITUTE PROPERTY OF
THE STATE AND THE FUND SHALL NOT BE CONSTRUED TO BE A DEPARTMENT, INSTI-
TUTION, OR AGENCY OF THE STATE. AMOUNTS ON DEPOSIT IN THE FUND SHALL NOT
BE COMMINGLED WITH STATE FUNDS AND THE STATE SHALL HAVE NO CLAIM TO OR
AGAINST, OR INTEREST IN, SUCH FUNDS.
S 99-BB. NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND. 1. THERE
IS HEREBY ESTABLISHED WITHIN THE CUSTODY OF THE STATE COMPTROLLER, OR
HIS OR HER DESIGNEE, IN CONSULTATION WITH THE NEW YORK STATE SECURE
CHOICE SAVINGS PROGRAM BOARD, A NEW FUND TO BE KNOWN AS THE NEW YORK
STATE SECURE CHOICE ADMINISTRATIVE FUND.
2. THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD SHALL USE
MONEYS IN THE ADMINISTRATIVE FUND TO PAY FOR ADMINISTRATIVE EXPENSES IT
INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER THE NEW YORK STATE SECURE
CHOICE SAVINGS PROGRAM PURSUANT TO ARTICLE 14-C OF THE RETIREMENT AND
SOCIAL SECURITY LAW.
3. THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD SHALL USE
MONEYS IN THE ADMINISTRATIVE FUND TO COVER START-UP ADMINISTRATIVE
EXPENSES IT INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER ARTICLE 14-C
OF THE RETIREMENT AND SOCIAL SECURITY LAW.
4. THE ADMINISTRATIVE FUND MAY RECEIVE ANY GRANTS OR OTHER MONEYS
DESIGNATED FOR ADMINISTRATIVE PURPOSES FROM THE STATE, OR ANY UNIT OF
FEDERAL OR LOCAL GOVERNMENT, OR ANY OTHER PERSON, FIRM, PARTNERSHIP, OR
CORPORATION. ANY INTEREST EARNINGS THAT ARE ATTRIBUTABLE TO MONEYS IN
THE ADMINISTRATIVE FUND MUST BE DEPOSITED INTO THE ADMINISTRATIVE FUND.
S 4. This act shall take effect immediately.
co-Sponsors
(D) 15th Senate District
(D) Senate District
(D) Senate District
(D) 14th Senate District
(D) Senate District
(D, WF) 47th Senate District
(D) Senate District
(D, WF) 21st Senate District
(D, WF) Senate District
(D) 10th Senate District
2015-S6045C - Details
- Current Committee:
- Senate Finance
- Law Section:
- Retirement and Social Security Law
- Laws Affected:
- Add Art 14-C §§570 - 587, R & SS L; add §§99-aa & 99-bb, St Fin L
- Versions Introduced in 2017-2018 Legislative Session:
-
S4344
2015-S6045C - Summary
Creates a self-sufficient retirement savings program in the form of an automatic enrollment payroll deduction IRA, and establishes an administrative board responsible for promoting greater retirement savings for private sector employees in a convenient, low-cost, and transferable manner.
2015-S6045C - Sponsor Memo
BILL NUMBER: S6045C
TITLE OF BILL :
An act to amend the retirement and social security law and the state
finance law, in relation to enacting the New York state secure choice
savings program act
PURPOSE OR GENERAL IDEA OF BILL :
The purpose of this is bill to create a self-sufficient retirement
savings program in the form of an automatic enrollment payroll
deduction IRA, and establish an administrative board responsible for
promoting greater retirement savings for private sector employees in a
convenient, low-cost, and transferable manner.
SUMMARY OF SPECIFIC PROVISIONS :
Section 1 titles the Act the "New York State Secure Choice Savings
Program Act".
Section 2 amends the retirement and social security law to add a new
article, 14-C.
Section 570 defines terms: program established, composition of the
board, fiduciary duty, duties of the board, risk management,
investment firms, investment options, benefits, employer and employee information packets and disclosure forms, program implementation and enrollment, payments, duty and liability of the state, duty and liability of participating employers, audit and reports, penalties, delayed implementation, and federal considerations. Section 571 establishes the New York State Secure Choice Savings Program, in the form of an automatic enrollment payroll deduction IRA, to administered by the New York Secure Choice Savings Board. Section 572 Establishes the New York state secure choice savings board, composed of eight appointed members. Section 573 Outlines the fiduciary responsibilities and duties of the savings board. Section 574 Outlines the responsibilities and other duties of the savings board. Section 575 Requires the board to annually prepare and adopt a written statement outlining the provisions associated with risk management. Section 576 permits the board to, by competitive bid, engage investment manager(s) Section 577 outlines investment options Section 578 provides that interest lost or gained shall be allocated in to individuals accounts Section 579 Provides for the creation and distribution of employer and employee information packets and disclosure forms. Section 580 Implements the New York state secure savings program within twenty four months after the effective date of this article. Section 581 - provides that mechanism to pay into fund employee contributions through payroll deductions Section 582 Maintains that the state of New York shall have no duty or liability to any party for the payment of any retirement savings benefits accrued by any individual under the program. Section 583 - provides employers with relief from employees investment decisions Section 584 Requires the board to submit annual financial reports and audits. Section 585 Enacts penalties for enrollment failure. Section 586 provides for delay of implementation if sufficient funds are not available Section 587 requires Board to request a ruling or opinion from Federal Government on applicability of ERISA laws on program. Section 3 - amends state finance law by adding two new sections Section 99-aa - creates the New York state secure choice savings program fund Section 99-bb - creates the New York state secure choice administrative fund. JUSTIFICATION : According to a survey by the Bureau of Labor Statistics, 97% of privately owned establishments, employing 500 workers or more, offer retirement and health benefits. That percentage is halved when compared to establishments with less than 49 workers. Moreover, in 2014 President Barrack Obama suggested that states need to do more to provide workers with options to fund retirement plans due to congressional inaction. This legislation would provide employees of smaller establishment's access to retirement saving options. PRIOR LEGISLATIVE HISTORY : none FISCAL IMPLICATIONS : To Be Determined EFFECTIVE DATE : Immediately
2015-S6045C - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
6045--C
2015-2016 Regular Sessions
I N S E N A T E
September 11, 2015
___________
Introduced by Sens. SAVINO, ADDABBO, AVELLA, CARLUCCI, COMRIE, HAMILTON,
HOYLMAN, PANEPINTO, PARKER, PERALTA, SANDERS -- read twice and ordered
printed, and when printed to be committed to the Committee on Rules --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- recommitted to the Committee on Civil
Service and Pensions in accordance with Senate Rule 6, sec. 8 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- reported favorably from said commit-
tee and committed to the Committee on Finance -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee
AN ACT to amend the retirement and social security law and the state
finance law, in relation to enacting the New York state secure choice
savings program act
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "New York state secure choice savings program act".
S 2. The retirement and social security law is amended by adding a new
article 14-C to read as follows:
ARTICLE 14-C
NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
SECTION 570. DEFINITIONS.
571. PROGRAM ESTABLISHED.
572. COMPOSITION OF THE BOARD.
573. FIDUCIARY DUTY.
574. DUTIES OF THE BOARD.
575. RISK MANAGEMENT.
576. INVESTMENT FIRMS.
577. INVESTMENT OPTIONS.
578. BENEFITS.
579. EMPLOYER AND EMPLOYEE INFORMATION PACKETS AND DISCLOSURE
FORMS.
580. PROGRAM IMPLEMENTATION AND ENROLLMENT.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11645-16-6
S. 6045--C 2
581. PAYMENTS.
582. DUTY AND LIABILITY OF THE STATE.
583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS.
584. AUDIT AND REPORTS.
585. PENALTIES.
586. DELAYED IMPLEMENTATION.
587. FEDERAL CONSIDERATIONS.
S 570. DEFINITIONS. ALL TERMS SHALL HAVE THE SAME MEANING AS WHEN USED
IN A COMPARABLE CONTEXT IN THE INTERNAL REVENUE CODE. AS USED IN THIS
ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "BOARD" SHALL MEAN THE NEW YORK SECURE CHOICE SAVINGS BOARD ESTAB-
LISHED UNDER THIS ARTICLE.
2. "SUPERINTENDENT" SHALL MEAN THE SUPERINTENDENT OF THE DEPARTMENT OF
FINANCIAL SERVICES.
2-A. "COMPTROLLER" SHALL MEAN THE COMPTROLLER OF THE STATE.
3. "EMPLOYEE" SHALL MEAN ANY INDIVIDUAL WHO IS EIGHTEEN YEARS OF AGE
OR OLDER, WHO IS EMPLOYED BY AN EMPLOYER, AND WHO EARNED WAGES WORKING
FOR AN EMPLOYER IN NEW YORK STATE DURING A CALENDAR YEAR.
4. "EMPLOYER" SHALL MEAN A PERSON OR ENTITY ENGAGED IN A BUSINESS,
INDUSTRY, PROFESSION, TRADE, OR OTHER ENTERPRISE IN NEW YORK STATE,
WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT (I) HAS AT ALL TIMES DURING
THE PREVIOUS CALENDAR YEAR EMPLOYED AT LEAST TWENTY-FIVE EMPLOYEES IN
THE STATE, (II) HAS BEEN IN BUSINESS AT LEAST TWO YEARS, AND (III) HAS
NOT OFFERED A QUALIFIED RETIREMENT PLAN, INCLUDING, BUT NOT LIMITED TO,
A PLAN QUALIFIED UNDER SECTIONS 401(A), 401(K), 403(A), 403(B), 408(K),
408(P) OR 457(B) OF THE INTERNAL REVENUE CODE OF 1986 IN THE PRECEDING
TWO YEARS.
5. "ENROLLEE" SHALL MEAN ANY EMPLOYEE WHO IS ENROLLED IN THE PROGRAM.
6. "FUND" SHALL MEAN THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
FUND.
7. "INTERNAL REVENUE CODE" SHALL MEAN THE INTERNAL REVENUE CODE OF
1986, OR ANY SUCCESSOR LAW, IN EFFECT FOR THE CALENDAR YEAR.
8. "IRA" SHALL MEAN A ROTH IRA (INDIVIDUAL RETIREMENT ACCOUNT).
9. "PARTICIPATING EMPLOYER" SHALL MEAN AN EMPLOYER OR SMALL EMPLOYER
THAT PROVIDES A PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT AS
PROVIDED FOR BY THIS ARTICLE FOR ITS EMPLOYEES WHO ARE ENROLLEES IN THE
PROGRAM.
10. "PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT" SHALL MEAN AN
ARRANGEMENT BY WHICH A PARTICIPATING EMPLOYER ALLOWS ENROLLEES TO REMIT
PAYROLL DEDUCTION CONTRIBUTIONS TO THE PROGRAM.
11. "PROGRAM" SHALL MEAN THE NEW YORK STATE SECURE CHOICE SAVINGS
PROGRAM.
12. "SMALL EMPLOYER" SHALL MEAN A PERSON OR ENTITY ENGAGED IN A BUSI-
NESS, INDUSTRY, PROFESSION, TRADE, OR OTHER ENTERPRISE IN NEW YORK
STATE, WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT (I) EMPLOYED LESS THAN
TWENTY-FIVE EMPLOYEES AT ANY ONE TIME IN THE STATE THROUGHOUT THE PREVI-
OUS CALENDAR YEAR, OR (II) HAS BEEN IN BUSINESS LESS THAN TWO YEARS, OR
BOTH ITEMS (I) AND (II), BUT THAT NOTIFIES THE COMPTROLLER THAT IT IS
INTERESTED IN BEING A PARTICIPATING EMPLOYER.
13. "WAGES" MEANS ANY COMPENSATION WITHIN THE MEANING OF SECTION
219(F)(1) OF THE INTERNAL REVENUE CODE THAT IS RECEIVED BY AN ENROLLEE
FROM A PARTICIPATING EMPLOYER DURING THE CALENDAR YEAR.
S 571. PROGRAM ESTABLISHED. A RETIREMENT SAVINGS PROGRAM IN THE FORM
OF AN AUTOMATIC ENROLLMENT PAYROLL DEDUCTION IRA, KNOWN AS THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM, IS HEREBY ESTABLISHED AND SHALL BE
ADMINISTERED BY THE BOARD FOR THE PURPOSE OF PROMOTING GREATER RETIRE-
S. 6045--C 3
MENT SAVINGS FOR PRIVATE-SECTOR EMPLOYEES IN A CONVENIENT, LOW-COST, AND
PORTABLE MANNER.
S 572. COMPOSITION OF THE BOARD. THERE IS HEREBY CREATED THE NEW YORK
STATE SECURE CHOICE SAVINGS BOARD.
1. THE BOARD SHALL CONSIST OF THE FOLLOWING EIGHT MEMBERS:
(A) THE STATE COMPTROLLER, OR HIS OR HER DESIGNEE, WHO SHALL SERVE AS
CHAIR;
(B) THE SUPERINTENDENT, OR HIS OR HER DESIGNEE;
(C) TWO PUBLIC REPRESENTATIVES WITH EXPERTISE IN RETIREMENT SAVINGS
PLAN ADMINISTRATION OR INVESTMENT, OR BOTH, ONE OF WHOM SHALL BE
APPOINTED BY THE SPEAKER OF THE ASSEMBLY AND ONE OF WHOM SHALL BE
APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE;
(D) A REPRESENTATIVE OF PARTICIPATING EMPLOYERS, APPOINTED BY THE
GOVERNOR;
(E) A REPRESENTATIVE OF ENROLLEES, APPOINTED BY THE GOVERNOR;
(F) THE CHAIR OF THE ASSEMBLY GOVERNMENTAL EMPLOYEES COMMITTEE; AND
(G) THE CHAIR OF THE SENATE CIVIL SERVICE AND PENSION COMMITTEE.
2. MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION BUT MAY BE
REIMBURSED FOR NECESSARY TRAVEL EXPENSES INCURRED IN CONNECTION WITH
THEIR BOARD DUTIES FROM FUNDS APPROPRIATED FOR THE PURPOSE.
3. THE INITIAL APPOINTMENTS SHALL BE AS FOLLOWS: ONE PUBLIC REPRESEN-
TATIVE FOR FOUR YEARS; THE REPRESENTATIVE OF PARTICIPATING EMPLOYERS FOR
THREE YEARS; AND THE REPRESENTATIVE OF ENROLLEES FOR THREE YEARS. THER-
EAFTER, ALL THE GOVERNOR'S APPOINTEES SHALL BE FOR TERMS OF FOUR YEARS.
4. A VACANCY IN THE TERM OF AN APPOINTED BOARD MEMBER SHALL BE FILLED
FOR THE BALANCE OF THE UNEXPIRED TERM IN THE SAME MANNER AS THE ORIGINAL
APPOINTMENT.
5. EACH APPOINTMENT BY THE GOVERNOR SHALL BE SUBJECT TO APPROVAL BY
THE COMPTROLLER, WHO, UPON APPROVAL, SHALL CERTIFY HIS OR HER APPROVAL
TO THE SECRETARY OF STATE.
S 573. FIDUCIARY DUTY. THE BOARD, THE INDIVIDUAL MEMBERS OF THE BOARD,
THE TRUSTEES, ANY OTHER AGENTS APPOINTED OR ENGAGED BY THE BOARD, AND
ALL PERSONS SERVING AS PROGRAM STAFF SHALL DISCHARGE THEIR DUTIES WITH
RESPECT TO THE PROGRAM SOLELY IN THE INTEREST OF THE PROGRAM'S ENROLLEES
AND BENEFICIARIES AS FOLLOWS:
1. FOR THE EXCLUSIVE PURPOSES OF PROVIDING BENEFITS TO ENROLLEES AND
BENEFICIARIES AND DEFRAYING REASONABLE EXPENSES OF ADMINISTERING THE
PROGRAM;
2. BY INVESTING WITH THE CARE, SKILL, PRUDENCE, AND DILIGENCE UNDER
THE PREVAILING CIRCUMSTANCES THAT A PRUDENT PERSON ACTING IN A LIKE
CAPACITY AND FAMILIAR WITH THOSE MATTERS WOULD USE IN THE CONDUCT OF AN
ENTERPRISE OF A LIKE CHARACTER AND WITH LIKE AIMS; AND
3. BY USING ANY CONTRIBUTIONS PAID BY EMPLOYEES AND EMPLOYERS INTO THE
TRUST EXCLUSIVELY FOR THE PURPOSE OF PAYING BENEFITS TO THE ENROLLEES OF
THE PROGRAM, FOR THE COST OF ADMINISTRATION OF THE PROGRAM, AND FOR
INVESTMENTS MADE FOR THE BENEFIT OF THE PROGRAM.
S 574. DUTIES OF THE BOARD. IN ADDITION TO THE OTHER DUTIES AND
RESPONSIBILITIES STATED IN THIS ARTICLE, THE BOARD SHALL:
1. CAUSE THE PROGRAM TO BE DESIGNED, ESTABLISHED AND OPERATED IN A
MANNER THAT:
(A) ACCORDS WITH BEST PRACTICES FOR RETIREMENT SAVINGS VEHICLES;
(B) MAXIMIZES PARTICIPATION, SAVINGS, AND SOUND INVESTMENT PRACTICES;
(C) MAXIMIZES SIMPLICITY, INCLUDING EASE OF ADMINISTRATION FOR PARTIC-
IPATING EMPLOYERS AND ENROLLEES;
(D) PROVIDES AN EFFICIENT PRODUCT TO ENROLLEES BY POOLING INVESTMENT
FUNDS;
S. 6045--C 4
(E) ENSURES THE PORTABILITY OF BENEFITS; AND
(F) PROVIDES FOR THE DEACCUMULATION OF ENROLLEE ASSETS IN A MANNER
THAT MAXIMIZES FINANCIAL SECURITY IN RETIREMENT.
2. APPOINT A TRUSTEE TO THE IRA FUND IN COMPLIANCE WITH SECTION 408 OF
THE INTERNAL REVENUE CODE.
3. EXPLORE AND ESTABLISH INVESTMENT OPTIONS, SUBJECT TO THIS ARTICLE,
THAT OFFER ENROLLEES RETURNS ON CONTRIBUTIONS AND THE CONVERSION OF
INDIVIDUAL RETIREMENT SAVINGS ACCOUNT BALANCES TO SECURE RETIREMENT
INCOME WITHOUT INCURRING DEBT OR LIABILITIES TO THE STATE.
4. ESTABLISH THE PROCESS BY WHICH INTEREST, INVESTMENT EARNINGS, AND
INVESTMENT LOSSES ARE ALLOCATED TO INDIVIDUAL PROGRAM ACCOUNTS ON A PRO
RATA BASIS AND ARE COMPUTED AT THE INTEREST RATE ON THE BALANCE OF AN
INDIVIDUAL'S ACCOUNT.
5. MAKE AND ENTER INTO CONTRACTS NECESSARY FOR THE ADMINISTRATION OF
THE PROGRAM AND FUND, INCLUDING, BUT NOT LIMITED TO, RETAINING AND
CONTRACTING WITH INVESTMENT MANAGERS, PRIVATE FINANCIAL INSTITUTIONS,
OTHER FINANCIAL AND SERVICE PROVIDERS, CONSULTANTS, ACTUARIES, COUNSEL,
AUDITORS, THIRD-PARTY ADMINISTRATORS, AND OTHER PROFESSIONALS AS NECES-
SARY.
6. CONDUCT A REVIEW OF THE PERFORMANCE OF ANY INVESTMENT VENDORS EVERY
FOUR YEARS, INCLUDING, BUT NOT LIMITED TO, A REVIEW OF RETURNS, FEES,
AND CUSTOMER SERVICE. A COPY OF REVIEWS SHALL BE POSTED TO THE BOARD'S
INTERNET WEBSITE.
7. DETERMINE THE NUMBER AND DUTIES OF STAFF MEMBERS NEEDED TO ADMINIS-
TER THE PROGRAM AND ASSEMBLE SUCH A STAFF, INCLUDING, AS NEEDED, EMPLOY-
ING STAFF, AND APPOINTING A PROGRAM ADMINISTRATOR.
8. CAUSE MONEYS IN THE FUND TO BE HELD AND INVESTED AS POOLED INVEST-
MENTS DESCRIBED IN THIS ARTICLE, WITH A VIEW TO ACHIEVING COST SAVINGS
THROUGH EFFICIENCIES AND ECONOMIES OF SCALE.
9. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN ENROLLEE IS ABLE TO
CONTRIBUTE A PORTION OF HIS OR HER WAGES TO THE PROGRAM FOR AUTOMATIC
DEPOSIT OF THOSE CONTRIBUTIONS AND THE PROCESS BY WHICH THE PARTICIPAT-
ING EMPLOYER PROVIDES A PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT
TO FORWARD THOSE CONTRIBUTIONS AND RELATED INFORMATION TO THE PROGRAM,
INCLUDING, BUT NOT LIMITED TO, CONTRACTING WITH FINANCIAL SERVICE COMPA-
NIES AND THIRD-PARTY ADMINISTRATORS WITH THE CAPABILITY TO RECEIVE AND
PROCESS EMPLOYEE INFORMATION AND CONTRIBUTIONS FOR PAYROLL DEPOSIT
RETIREMENT SAVINGS ARRANGEMENTS OR SIMILAR ARRANGEMENTS.
10. DESIGN AND ESTABLISH THE PROCESS FOR ENROLLMENT INCLUDING THE
PROCESS BY WHICH AN EMPLOYEE CAN OPT NOT TO PARTICIPATE IN THE PROGRAM,
SELECT A CONTRIBUTION LEVEL, SELECT AN INVESTMENT OPTION, AND TERMINATE
PARTICIPATION IN THE PROGRAM.
11. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN EMPLOYEE MAY VOLUN-
TARILY ENROLL IN AND MAKE CONTRIBUTIONS TO THE PROGRAM.
12. ACCEPT ANY GRANTS, APPROPRIATIONS, OR OTHER MONEYS FROM THE STATE,
ANY UNIT OF FEDERAL, STATE, OR LOCAL GOVERNMENT, OR ANY OTHER PERSON,
FIRM, PARTNERSHIP, OR CORPORATION SOLELY FOR DEPOSIT INTO THE FUND,
WHETHER FOR INVESTMENT OR ADMINISTRATIVE PURPOSES.
13. EVALUATE THE NEED FOR, AND PROCURE AS NEEDED, INSURANCE AGAINST
ANY AND ALL LOSS IN CONNECTION WITH THE PROPERTY, ASSETS, OR ACTIVITIES
OF THE PROGRAM, AND INDEMNIFY AS NEEDED EACH MEMBER OF THE BOARD FROM
PERSONAL LOSS OR LIABILITY RESULTING FROM A MEMBER'S ACTION OR INACTION
AS A MEMBER OF THE BOARD.
14. MAKE PROVISIONS FOR THE PAYMENT OF ADMINISTRATIVE COSTS AND
EXPENSES FOR THE CREATION, MANAGEMENT, AND OPERATION OF THE PROGRAM.
SUBJECT TO APPROPRIATION, THE STATE MAY PAY ADMINISTRATIVE COSTS ASSOCI-
S. 6045--C 5
ATED WITH THE CREATION AND MANAGEMENT OF THE PROGRAM UNTIL SUFFICIENT
ASSETS ARE AVAILABLE IN THE FUND FOR THAT PURPOSE. THEREAFTER, ALL
ADMINISTRATIVE COSTS OF THE FUND, INCLUDING REPAYMENT OF ANY START-UP
FUNDS PROVIDED BY THE STATE, SHALL BE PAID ONLY OUT OF MONEYS ON DEPOSIT
THEREIN. HOWEVER, PRIVATE FUNDS OR FEDERAL FUNDING RECEIVED IN ORDER TO
IMPLEMENT THE PROGRAM UNTIL THE FUND IS SELF-SUSTAINING SHALL NOT BE
REPAID UNLESS THOSE FUNDS WERE OFFERED CONTINGENT UPON THE PROMISE OF
SUCH REPAYMENT. THE BOARD SHALL KEEP ANNUAL ADMINISTRATIVE EXPENSES AS
LOW AS POSSIBLE, BUT IN NO EVENT SHALL THEY EXCEED 0.75% OF THE TOTAL
TRUST BALANCE.
15. ALLOCATE ADMINISTRATIVE FEES TO INDIVIDUAL RETIREMENT ACCOUNTS IN
THE PROGRAM ON A PRO RATA BASIS.
16. SET MINIMUM AND MAXIMUM CONTRIBUTION LEVELS IN ACCORDANCE WITH
LIMITS ESTABLISHED FOR IRAS BY THE INTERNAL REVENUE CODE.
17. FACILITATE EDUCATION AND OUTREACH TO EMPLOYERS AND EMPLOYEES.
18. FACILITATE COMPLIANCE BY THE PROGRAM WITH ALL APPLICABLE REQUIRE-
MENTS FOR THE PROGRAM UNDER THE INTERNAL REVENUE CODE, INCLUDING TAX
QUALIFICATION REQUIREMENTS OR ANY OTHER APPLICABLE LAW AND ACCOUNTING
REQUIREMENTS.
19. CARRY OUT THE DUTIES AND OBLIGATIONS OF THE PROGRAM IN AN EFFEC-
TIVE, EFFICIENT, AND LOW-COST MANNER.
20. EXERCISE ANY AND ALL OTHER POWERS REASONABLY NECESSARY FOR THE
EFFECTUATION OF THE PURPOSES, OBJECTIVES, AND PROVISIONS OF THIS ARTICLE
PERTAINING TO THE PROGRAM.
21. DEPOSIT INTO THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND
ALL GRANTS, GIFTS, DONATIONS, FEES, AND EARNINGS FROM INVESTMENTS FROM
THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND THAT ARE USED TO
RECOVER ADMINISTRATIVE COSTS. ALL EXPENSES OF THE BOARD SHALL BE PAID
FROM THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND.
S 575. RISK MANAGEMENT. THE BOARD SHALL ANNUALLY PREPARE AND ADOPT A
WRITTEN STATEMENT OF INVESTMENT POLICY THAT INCLUDES A RISK MANAGEMENT
AND OVERSIGHT PROGRAM. THIS INVESTMENT POLICY SHALL PROHIBIT THE BOARD,
PROGRAM, AND FUND FROM BORROWING FOR INVESTMENT PURPOSES. THE RISK
MANAGEMENT AND OVERSIGHT PROGRAM SHALL BE DESIGNED TO ENSURE THAT AN
EFFECTIVE RISK MANAGEMENT SYSTEM IS IN PLACE TO MONITOR THE RISK LEVELS
OF THE PROGRAM AND FUND PORTFOLIO, TO ENSURE THAT THE RISKS TAKEN ARE
PRUDENT AND PROPERLY MANAGED, TO PROVIDE AN INTEGRATED PROCESS FOR OVER-
ALL RISK MANAGEMENT, AND TO ASSESS INVESTMENT RETURNS AS WELL AS RISK TO
DETERMINE IF THE RISKS TAKEN ARE ADEQUATELY COMPENSATED COMPARED TO
APPLICABLE PERFORMANCE BENCHMARKS AND STANDARDS. THE BOARD SHALL CONSID-
ER THE STATEMENT OF INVESTMENT POLICY AND ANY CHANGES IN THE INVESTMENT
POLICY AT A PUBLIC HEARING.
S 576. INVESTMENT FIRMS. 1. THE BOARD SHALL ENGAGE, AFTER AN OPEN BID
PROCESS, AN INVESTMENT MANAGER OR MANAGERS TO INVEST THE FUND AND ANY
OTHER ASSETS OF THE PROGRAM. MONEYS IN THE FUND MAY BE INVESTED OR REIN-
VESTED BY THE COMPTROLLER OR MAY BE INVESTED IN WHOLE OR IN PART. IN
SELECTING THE INVESTMENT MANAGER OR MANAGERS, THE BOARD SHALL TAKE INTO
CONSIDERATION AND GIVE WEIGHT TO THE INVESTMENT MANAGER'S FEES AND
CHARGES IN ORDER TO REDUCE THE PROGRAM'S ADMINISTRATIVE EXPENSES.
2. THE INVESTMENT MANAGER OR MANAGERS SHALL COMPLY WITH ANY AND ALL
APPLICABLE FEDERAL AND STATE LAWS, RULES, AND REGULATIONS, AS WELL AS
ANY AND ALL RULES, POLICIES, AND GUIDELINES PROMULGATED BY THE BOARD
WITH RESPECT TO THE PROGRAM AND THE INVESTMENT OF THE FUND, INCLUDING,
BUT NOT LIMITED TO, THE INVESTMENT POLICY.
S. 6045--C 6
3. THE INVESTMENT MANAGER OR MANAGERS SHALL PROVIDE SUCH REPORTS AS
THE BOARD DEEMS NECESSARY FOR THE BOARD TO OVERSEE EACH INVESTMENT
MANAGER'S PERFORMANCE AND THE PERFORMANCE OF THE FUND.
S 577. INVESTMENT OPTIONS. 1. THE BOARD SHALL ESTABLISH AS AN INVEST-
MENT OPTION A LIFE-CYCLE FUND WITH A TARGET DATE BASED UPON THE AGE OF
THE ENROLLEE. THIS SHALL BE THE DEFAULT INVESTMENT OPTION FOR ENROLLEES
WHO FAIL TO ELECT AN INVESTMENT OPTION UNLESS AND UNTIL THE BOARD DESIG-
NATES BY RULE A NEW INVESTMENT OPTION AS THE DEFAULT.
2. THE BOARD MAY ALSO ESTABLISH ANY OR ALL OF THE FOLLOWING ADDITIONAL
INVESTMENT OPTIONS:
(A) A CONSERVATIVE PRINCIPAL PROTECTION FUND;
(B) A GROWTH FUND;
(C) A SECURE RETURN FUND WHOSE PRIMARY OBJECTIVE IS THE PRESERVATION
OF THE SAFETY OF PRINCIPAL AND THE PROVISION OF A STABLE AND LOW-RISK
RATE OF RETURN; IF THE BOARD ELECTS TO ESTABLISH A SECURE RETURN FUND,
THE BOARD MAY PROCURE ANY INSURANCE, ANNUITY, OR OTHER PRODUCT TO INSURE
THE VALUE OF ENROLLEES' ACCOUNTS AND GUARANTEE A RATE OF RETURN; THE
COST OF SUCH FUNDING MECHANISM SHALL BE PAID OUT OF THE FUND; UNDER NO
CIRCUMSTANCES SHALL THE BOARD, PROGRAM, FUND, THE STATE, OR ANY PARTIC-
IPATING EMPLOYER ASSUME ANY LIABILITY FOR INVESTMENT OR ACTUARIAL RISK;
THE BOARD SHALL DETERMINE WHETHER TO ESTABLISH SUCH INVESTMENT OPTIONS
BASED UPON AN ANALYSIS OF THEIR COST, RISK PROFILE, BENEFIT LEVEL,
FEASIBILITY, AND EASE OF IMPLEMENTATION; OR
(D) AN ANNUITY FUND.
3. IF THE BOARD ELECTS TO ESTABLISH A SECURE RETURN FUND, THE BOARD
SHALL THEN DETERMINE WHETHER SUCH OPTION SHALL REPLACE THE TARGET DATE
OR LIFE-CYCLE FUND AS THE DEFAULT INVESTMENT OPTION FOR ENROLLEES WHO DO
NOT ELECT AN INVESTMENT OPTION. IN MAKING SUCH DETERMINATION, THE BOARD
SHALL CONSIDER THE COST, RISK PROFILE, BENEFIT LEVEL, AND EASE OF
ENROLLMENT IN THE SECURE RETURN FUND. THE BOARD MAY AT ANY TIME THERE-
AFTER REVISIT THIS QUESTION AND, BASED UPON AN ANALYSIS OF THESE CRITE-
RIA, ESTABLISH EITHER THE SECURE RETURN FUND OR THE LIFE-CYCLE FUND AS
THE DEFAULT FOR ENROLLEES WHO DO NOT ELECT AN INVESTMENT OPTION.
S 578. BENEFITS. INTEREST, INVESTMENT EARNINGS, AND INVESTMENT LOSSES
SHALL BE ALLOCATED TO INDIVIDUAL PROGRAM ACCOUNTS AS ESTABLISHED BY THE
BOARD PURSUANT TO THIS ARTICLE. AN INDIVIDUAL'S RETIREMENT SAVINGS BENE-
FIT UNDER THE PROGRAM SHALL BE AN AMOUNT EQUAL TO THE BALANCE IN THE
INDIVIDUAL'S PROGRAM ACCOUNT ON THE DATE THE RETIREMENT SAVINGS BENEFIT
BECOMES PAYABLE. THE STATE SHALL HAVE NO LIABILITY FOR THE PAYMENT OF
ANY BENEFIT TO ANY ENROLLEE IN THE PROGRAM.
S 579. EMPLOYER AND EMPLOYEE INFORMATION PACKETS AND DISCLOSURE FORMS.
1. PRIOR TO THE OPENING OF THE PROGRAM FOR ENROLLMENT, THE BOARD SHALL
DESIGN AND DISSEMINATE TO ALL EMPLOYERS AN EMPLOYER INFORMATION PACKET
AND AN EMPLOYEE INFORMATION PACKET, WHICH SHALL INCLUDE BACKGROUND
INFORMATION ON THE PROGRAM, APPROPRIATE DISCLOSURES FOR EMPLOYEES, AND
INFORMATION REGARDING THE VENDOR INTERNET WEBSITE DESCRIBED.
2. THE BOARD SHALL PROVIDE FOR THE CONTENTS OF BOTH THE EMPLOYEE
INFORMATION PACKET AND THE EMPLOYER INFORMATION PACKET. THE EMPLOYEE
INFORMATION PACKET SHALL BE MADE AVAILABLE IN ENGLISH, SPANISH, HAITIAN
CREOLE, CHINESE, KOREAN, RUSSIAN, ARABIC, AND ANY OTHER LANGUAGE THE
COMPTROLLER DEEMS NECESSARY.
3. THE EMPLOYEE INFORMATION PACKET SHALL INCLUDE A DISCLOSURE FORM.
THE DISCLOSURE FORM SHALL EXPLAIN, BUT NOT BE LIMITED TO, ALL OF THE
FOLLOWING:
(A) THE BENEFITS AND RISKS ASSOCIATED WITH MAKING CONTRIBUTIONS TO THE
PROGRAM;
S. 6045--C 7
(B) THE MECHANICS OF HOW TO MAKE CONTRIBUTIONS TO THE PROGRAM;
(C) HOW TO OPT OUT OF THE PROGRAM;
(D) HOW TO PARTICIPATE IN THE PROGRAM WITH A LEVEL OF EMPLOYEE
CONTRIBUTIONS OTHER THAN THREE PERCENT;
(E) THAT THEY ARE NOT REQUIRED TO PARTICIPATE OR CONTRIBUTE MORE THAN
THREE PERCENT;
(F) THAT THEY CAN OPT OUT AFTER THEY HAVE ENROLLED;
(G) THE PROCESS FOR WITHDRAWAL OF RETIREMENT SAVINGS;
(H) HOW TO OBTAIN ADDITIONAL INFORMATION ABOUT THE PROGRAM;
(I) THAT EMPLOYEES SEEKING FINANCIAL ADVICE SHOULD CONTACT FINANCIAL
ADVISORS, THAT PARTICIPATING EMPLOYERS ARE NOT IN A POSITION TO PROVIDE
FINANCIAL ADVICE, AND THAT PARTICIPATING EMPLOYERS ARE NOT LIABLE FOR
DECISIONS EMPLOYEES MAKE PURSUANT TO THIS ARTICLE;
(J) INFORMATION ON HOW TO ACCESS ANY FINANCIAL LITERACY PROGRAMS
IMPLEMENTED BY THE COMPTROLLER;
(K) THAT THE PROGRAM IS NOT AN EMPLOYER-SPONSORED RETIREMENT PLAN; AND
(L) THAT THE PROGRAM FUND IS NOT GUARANTEED BY THE STATE.
4. THE EMPLOYEE INFORMATION PACKET SHALL ALSO INCLUDE A FORM FOR AN
EMPLOYEE TO NOTE HIS OR HER DECISION TO OPT OUT OF PARTICIPATION IN THE
PROGRAM OR ELECT TO PARTICIPATE WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS
OTHER THAN THREE PERCENT.
5. PARTICIPATING EMPLOYERS SHALL SUPPLY THE EMPLOYEE INFORMATION PACK-
ET TO EMPLOYEES UPON LAUNCH OF THE PROGRAM. PARTICIPATING EMPLOYERS
SHALL SUPPLY THE EMPLOYEE INFORMATION PACKET TO NEW EMPLOYEES AT THE
TIME OF HIRING, AND NEW EMPLOYEES MAY OPT OUT OF PARTICIPATION IN THE
PROGRAM OR ELECT TO PARTICIPATE WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS
OTHER THAN THREE PERCENT AT THAT TIME.
6. THE STATE COMPTROLLER SHALL ESTABLISH A WEBSITE REGARDING THE
SECURE CHOICE SAVINGS PROGRAM WHICH SHALL BE ACCESSIBLE THROUGH THE
STATE COMPTROLLER'S OWN WEBSITE.
S 580. PROGRAM IMPLEMENTATION AND ENROLLMENT. EXCEPT AS OTHERWISE
PROVIDED IN THIS ARTICLE, THE PROGRAM SHALL BE IMPLEMENTED, AND ENROLL-
MENT OF EMPLOYEES SHALL BEGIN, WITHIN TWENTY-FOUR MONTHS AFTER THE
EFFECTIVE DATE OF THIS ARTICLE. THE PROVISIONS OF THIS SECTION SHALL BE
IN FORCE AFTER THE BOARD OPENS THE PROGRAM FOR ENROLLMENT.
1. EACH PARTICIPATING EMPLOYER SHALL ESTABLISH A PAYROLL DEPOSIT
RETIREMENT SAVINGS ARRANGEMENT TO ALLOW EACH EMPLOYEE TO PARTICIPATE IN
THE PROGRAM AT MOST NINE MONTHS AFTER THE BOARD OPENS THE PROGRAM FOR
ENROLLMENT.
2. PARTICIPATING EMPLOYERS SHALL AUTOMATICALLY ENROLL IN THE PROGRAM
EACH OF THEIR EMPLOYEES WHO HAS NOT OPTED OUT OF PARTICIPATION IN THE
PROGRAM USING THE FORM DESCRIBED IN THIS ARTICLE AND SHALL PROVIDE
PAYROLL DEDUCTION RETIREMENT SAVINGS ARRANGEMENTS FOR SUCH EMPLOYEES AND
DEPOSIT, ON BEHALF OF SUCH EMPLOYEES, THESE FUNDS INTO THE PROGRAM.
SMALL EMPLOYERS MAY, BUT ARE NOT REQUIRED TO, PROVIDE PAYROLL DEDUCTION
RETIREMENT SAVINGS ARRANGEMENTS FOR EACH EMPLOYEE WHO ELECTS TO PARTIC-
IPATE IN THE PROGRAM.
3. ENROLLEES SHALL HAVE THE ABILITY TO SELECT A CONTRIBUTION LEVEL
INTO THE FUND. THIS LEVEL MAY BE EXPRESSED AS A PERCENTAGE OF WAGES OR
AS A DOLLAR AMOUNT UP TO THE DEDUCTIBLE AMOUNT FOR THE ENROLLEE'S TAXA-
BLE YEAR UNDER SECTION 219(B)(1)(A) OF THE INTERNAL REVENUE CODE. ENROL-
LEES MAY CHANGE THEIR CONTRIBUTION LEVEL AT ANY TIME, SUBJECT TO RULES
PROMULGATED BY THE BOARD. IF AN ENROLLEE FAILS TO SELECT A CONTRIBUTION
LEVEL USING THE FORM DESCRIBED IN THIS ARTICLE, THEN HE OR SHE SHALL
CONTRIBUTE THREE PERCENT OF HIS OR HER WAGES TO THE PROGRAM, PROVIDED
THAT SUCH CONTRIBUTIONS SHALL NOT CAUSE THE ENROLLEE'S TOTAL CONTRIB-
S. 6045--C 8
UTIONS TO IRAS FOR THE YEAR TO EXCEED THE DEDUCTIBLE AMOUNT FOR THE
ENROLLEE'S TAXABLE YEAR UNDER SECTION 219(B)(1)(A) OF THE INTERNAL
REVENUE CODE.
4. ENROLLEES MAY SELECT AN INVESTMENT OPTION FROM THE PERMITTED
INVESTMENT OPTIONS LISTED IN THIS ARTICLE. ENROLLEES MAY CHANGE THEIR
INVESTMENT OPTION AT ANY TIME, SUBJECT TO RULES PROMULGATED BY THE
BOARD. IN THE EVENT THAT AN ENROLLEE FAILS TO SELECT AN INVESTMENT
OPTION, THAT ENROLLEE SHALL BE PLACED IN THE INVESTMENT OPTION SELECTED
BY THE BOARD AS THE DEFAULT UNDER THIS ARTICLE. IF THE BOARD HAS NOT
SELECTED A DEFAULT INVESTMENT OPTION UNDER THIS ARTICLE, THEN AN ENROL-
LEE WHO FAILS TO SELECT AN INVESTMENT OPTION SHALL BE PLACED IN THE
LIFE-CYCLE FUND INVESTMENT OPTION.
5. FOLLOWING INITIAL IMPLEMENTATION OF THE PROGRAM PURSUANT TO THIS
SECTION, AT LEAST ONCE EVERY YEAR, PARTICIPATING EMPLOYERS SHALL DESIG-
NATE AN OPEN ENROLLMENT PERIOD DURING WHICH EMPLOYEES WHO PREVIOUSLY
OPTED OUT OF THE PROGRAM MAY ENROLL IN THE PROGRAM.
6. AN EMPLOYEE WHO OPTS OUT OF THE PROGRAM WHO SUBSEQUENTLY WANTS TO
PARTICIPATE THROUGH THE PARTICIPATING EMPLOYER'S PAYROLL DEPOSIT RETIRE-
MENT SAVINGS ARRANGEMENT MAY ONLY ENROLL DURING THE PARTICIPATING
EMPLOYER'S DESIGNATED OPEN ENROLLMENT PERIOD OR IF PERMITTED BY THE
PARTICIPATING EMPLOYER AT AN EARLIER TIME.
7. EMPLOYERS SHALL RETAIN THE OPTION AT ALL TIMES TO SET UP ANY TYPE
OF EMPLOYER-SPONSORED RETIREMENT PLAN OR TO OFFER AN AUTOMATIC ENROLL-
MENT PAYROLL DEDUCTION IRA, INSTEAD OF HAVING A PAYROLL DEPOSIT RETIRE-
MENT SAVINGS ARRANGEMENT TO ALLOW EMPLOYEE PARTICIPATION IN THE PROGRAM.
8. AN ENROLLEE MAY TERMINATE HIS OR HER PARTICIPATION IN THE PROGRAM
AT ANY TIME IN A MANNER PRESCRIBED BY THE BOARD.
9. (A) THE BOARD SHALL ESTABLISH AND MAINTAIN AN INTERNET WEBSITE
DESIGNED TO ASSIST EMPLOYERS IN IDENTIFYING PRIVATE SECTOR PROVIDERS OF
RETIREMENT ARRANGEMENTS THAT CAN BE SET UP BY THE EMPLOYER RATHER THAN
ALLOWING EMPLOYEE PARTICIPATION IN THE PROGRAM UNDER THIS ARTICLE.
(B) THE BOARD SHALL ALSO, IN CONJUNCTION WITH THE OFFICE OF THE STATE
COMPTROLLER, ESTABLISH AND MAINTAIN A SECURE WEBSITE WHEREIN ENROLLEES
MAY LOG IN AND ACQUIRE INFORMATION REGARDING CONTRIBUTIONS AND INVEST-
MENT INCOME ALLOCATED TO, WITHDRAWALS FROM, AND BALANCES IN THEIR
PROGRAM ACCOUNTS FOR THE REPORTING PERIOD. SUCH WEBSITE MUST ALSO
INCLUDE INFORMATION FOR THE ENROLLEES REGARDING OTHER OPTIONS AVAILABLE
TO THE EMPLOYEE AND HOW THEY CAN TRANSFER THEIR ACCOUNTS TO OTHER
PROGRAMS SHOULD THEY WISH TO DO SO. SUCH WEBSITE MAY INCLUDE ANY OTHER
INFORMATION REGARDING THE PROGRAM AS THE BOARD MAY DETERMINE.
S 581. PAYMENTS. EMPLOYEE CONTRIBUTIONS DEDUCTED BY THE PARTICIPATING
EMPLOYER THROUGH PAYROLL DEDUCTION SHALL BE PAID BY THE PARTICIPATING
EMPLOYER TO THE FUND USING ONE OR MORE PAYROLL DEPOSIT RETIREMENT
SAVINGS ARRANGEMENTS ESTABLISHED BY THE BOARD UNDER THIS ARTICLE,
EITHER:
1. ON OR BEFORE THE LAST DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH
THE COMPENSATION OTHERWISE WOULD HAVE BEEN PAYABLE TO THE EMPLOYEE IN
CASH; OR
2. BEFORE SUCH LATER DEADLINE PRESCRIBED BY THE BOARD FOR MAKING SUCH
PAYMENTS, BUT NOT LATER THAN THE DUE DATE FOR THE DEPOSIT OF TAX
REQUIRED TO BE DEDUCTED AND WITHHELD RELATING TO COLLECTION OF INCOME
TAX AT SOURCE ON WAGES OR FOR THE DEPOSIT OF TAX REQUIRED TO BE PAID
UNDER THE UNEMPLOYMENT INSURANCE SYSTEM FOR THE PAYROLL PERIOD TO WHICH
SUCH PAYMENTS RELATE.
S 582. DUTY AND LIABILITY OF THE STATE. 1. THE STATE SHALL HAVE NO
DUTY OR LIABILITY TO ANY PARTY FOR THE PAYMENT OF ANY RETIREMENT SAVINGS
S. 6045--C 9
BENEFITS ACCRUED BY ANY ENROLLEE UNDER THE PROGRAM. ANY FINANCIAL
LIABILITY FOR THE PAYMENT OF RETIREMENT SAVINGS BENEFITS IN EXCESS OF
FUNDS AVAILABLE UNDER THE PROGRAM SHALL BE BORNE SOLELY BY THE ENTITIES
WITH WHOM THE BOARD CONTRACTS TO PROVIDE INSURANCE TO PROTECT THE VALUE
OF THE PROGRAM.
2. NO STATE BOARD, COMMISSION, OR AGENCY, OR ANY OFFICER, EMPLOYEE, OR
MEMBER THEREOF IS LIABLE FOR ANY LOSS OR DEFICIENCY RESULTING FROM
PARTICULAR INVESTMENTS SELECTED UNDER THIS ARTICLE, EXCEPT FOR ANY
LIABILITY THAT ARISES OUT OF A BREACH OF FIDUCIARY DUTY.
S 583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS. 1. PARTICIPAT-
ING EMPLOYERS SHALL NOT HAVE ANY LIABILITY FOR AN EMPLOYEE'S DECISION TO
PARTICIPATE IN, OR OPT OUT OF, THE PROGRAM OR FOR THE INVESTMENT DECI-
SIONS OF THE BOARD OR OF ANY ENROLLEE.
2. A PARTICIPATING EMPLOYER SHALL NOT BE A FIDUCIARY, OR CONSIDERED TO
BE A FIDUCIARY, OVER THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT
BEAR RESPONSIBILITY FOR THE ADMINISTRATION, INVESTMENT, OR INVESTMENT
PERFORMANCE OF THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT BE LIABLE
WITH REGARD TO INVESTMENT RETURNS, PROGRAM DESIGN, AND BENEFITS PAID TO
PROGRAM PARTICIPANTS.
S 584. AUDIT AND REPORTS. 1. THE BOARD SHALL ANNUALLY SUBMIT:
(A) AN AUDITED FINANCIAL REPORT, PREPARED IN ACCORDANCE WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES, ON THE OPERATIONS OF THE PROGRAM DURING
EACH CALENDAR YEAR BY JULY FIRST OF THE FOLLOWING YEAR TO THE GOVERNOR,
THE COMPTROLLER, THE SUPERINTENDENT OF FINANCIAL SERVICES AND THE SENATE
AND ASSEMBLY; AND
(B) A REPORT PREPARED BY THE BOARD, WHICH SHALL INCLUDE, BUT IS NOT
LIMITED TO, A SUMMARY OF THE BENEFITS PROVIDED BY THE PROGRAM, INCLUDING
THE NUMBER OF ENROLLEES IN THE PROGRAM, THE PERCENTAGE AND AMOUNTS OF
INVESTMENT OPTIONS AND RATES OF RETURN, AND SUCH OTHER INFORMATION THAT
IS RELEVANT TO MAKE A FULL, FAIR, AND EFFECTIVE DISCLOSURE OF THE OPER-
ATIONS OF THE PROGRAM AND THE FUND. THE ANNUAL AUDIT SHALL BE MADE BY AN
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT AND SHALL INCLUDE, BUT IS NOT
LIMITED TO, DIRECT AND INDIRECT COSTS ATTRIBUTABLE TO THE USE OF OUTSIDE
CONSULTANTS, INDEPENDENT CONTRACTORS, AND ANY OTHER PERSONS WHO ARE NOT
STATE EMPLOYEES FOR THE ADMINISTRATION OF THE PROGRAM.
2. IN ADDITION TO ANY OTHER STATEMENTS OR REPORTS REQUIRED BY LAW, THE
BOARD SHALL PROVIDE PERIODIC REPORTS AT LEAST ANNUALLY TO ENROLLEES,
REPORTING CONTRIBUTIONS AND INVESTMENT INCOME ALLOCATED TO, WITHDRAWALS
FROM, AND BALANCES IN THEIR PROGRAM ACCOUNTS FOR THE REPORTING PERIOD.
SUCH REPORTS MAY INCLUDE ANY OTHER INFORMATION REGARDING THE PROGRAM AS
THE BOARD MAY DETERMINE.
S 585. PENALTIES. 1. AN EMPLOYER WHO FAILS WITHOUT REASONABLE CAUSE TO
ENROLL AN EMPLOYEE IN THE PROGRAM WITHIN THE TIME PRESCRIBED UNDER THIS
ARTICLE SHALL BE SUBJECT TO A PENALTY EQUAL TO:
(A) TWO HUNDRED FIFTY DOLLARS FOR EACH EMPLOYEE FOR EACH CALENDAR YEAR
OR PORTION OF A CALENDAR YEAR DURING WHICH THE EMPLOYEE NEITHER WAS
ENROLLED IN THE PROGRAM NOR HAD ELECTED OUT OF PARTICIPATION IN THE
PROGRAM; OR
(B) FOR EACH CALENDAR YEAR BEGINNING AFTER THE DATE A PENALTY HAS BEEN
ASSESSED WITH RESPECT TO AN EMPLOYEE, FIVE HUNDRED DOLLARS FOR ANY
PORTION OF THAT CALENDAR YEAR DURING WHICH SUCH EMPLOYEE CONTINUES TO BE
UNENROLLED WITHOUT ELECTING OUT OF PARTICIPATION IN THE PROGRAM.
2. AFTER DETERMINING THAT AN EMPLOYER IS SUBJECT TO PENALTY UNDER THIS
SECTION FOR A CALENDAR YEAR, THE COMPTROLLER SHALL ISSUE A NOTICE OF
PROPOSED ASSESSMENT TO SUCH EMPLOYER, STATING THE NUMBER OF EMPLOYEES
FOR WHICH THE PENALTY IS PROPOSED UNDER THIS SECTION AND THE NUMBER OF
S. 6045--C 10
EMPLOYEES FOR WHICH THE PENALTY IS PROPOSED UNDER THIS SECTION FOR SUCH
CALENDAR YEAR, AND THE TOTAL AMOUNT OF PENALTIES PROPOSED. UPON THE
EXPIRATION OF NINETY DAYS AFTER THE DATE ON WHICH A NOTICE OF PROPOSED
ASSESSMENT WAS ISSUED, THE PENALTIES SPECIFIED THEREIN SHALL BE DEEMED
ASSESSED, UNLESS THE EMPLOYER HAD FILED A PROTEST WITH THE COMPTROLLER
UNDER THIS SECTION. IF, WITHIN NINETY DAYS AFTER THE DATE ON WHICH IT
WAS ISSUED, A PROTEST OF A NOTICE OF PROPOSED ASSESSMENT IS FILED UNDER
THIS SECTION, THE PENALTIES SPECIFIED THEREIN SHALL BE DEEMED ASSESSED
UPON THE DATE WHEN THE DECISION OF THE COMPTROLLER WITH RESPECT TO THE
PROTEST BECOMES FINAL.
3. A WRITTEN PROTEST AGAINST THE PROPOSED ASSESSMENT SHALL BE FILED
WITH THE COMPTROLLER IN SUCH FORM AS THE COMPTROLLER MAY BY RULE
PRESCRIBE, SETTING FORTH THE GROUNDS ON WHICH SUCH PROTEST IS BASED. IF
SUCH A PROTEST IS FILED WITHIN NINETY DAYS AFTER THE DATE THE NOTICE OF
PROPOSED ASSESSMENT IS ISSUED, THE COMPTROLLER SHALL RECONSIDER THE
PROPOSED ASSESSMENT AND SHALL GRANT THE EMPLOYER A HEARING. AS SOON AS
PRACTICABLE AFTER SUCH RECONSIDERATION AND HEARING, THE COMPTROLLER
SHALL ISSUE A NOTICE OF DECISION TO THE EMPLOYER, SETTING FORTH THE
COMPTROLLER'S FINDINGS OF FACT AND THE BASIS OF DECISION. THE DECISION
OF THE COMPTROLLER SHALL BECOME FINAL:
(A) IF NO ACTION FOR REVIEW OF THE DECISION IS COMMENCED, ON THE DATE
ON WHICH THE TIME FOR COMMENCEMENT OF SUCH REVIEW HAS EXPIRED; OR
(B) IF A TIMELY ACTION FOR REVIEW OF THE DECISION IS COMMENCED, ON THE
DATE ALL PROCEEDINGS IN COURT FOR THE REVIEW OF SUCH ASSESSMENT HAVE
TERMINATED OR THE TIME FOR THE TAKING THEREOF HAS EXPIRED WITHOUT SUCH
PROCEEDINGS BEING INSTITUTED.
4. AS SOON AS PRACTICABLE AFTER THE PENALTIES SPECIFIED IN A NOTICE OF
PROPOSED ASSESSMENT ARE DEEMED ASSESSED, THE COMPTROLLER SHALL GIVE
NOTICE TO THE EMPLOYER LIABLE FOR ANY UNPAID PORTION OF SUCH ASSESSMENT,
STATING THE AMOUNT DUE AND DEMANDING PAYMENT. IF AN EMPLOYER NEGLECTS OR
REFUSES TO PAY THE ENTIRE LIABILITY SHOWN ON THE NOTICE AND DEMAND WITH-
IN TEN DAYS AFTER THE NOTICE AND DEMAND IS ISSUED, THE UNPAID AMOUNT OF
THE LIABILITY SHALL BE A LIEN IN FAVOR OF THE STATE UPON ALL PROPERTY
AND RIGHTS TO PROPERTY, WHETHER REAL OR PERSONAL, BELONGING TO THE
EMPLOYER.
5. AN EMPLOYER WHO HAS OVERPAID A PENALTY ASSESSED UNDER THIS SECTION
MAY FILE A CLAIM FOR REFUND WITH THE COMPTROLLER. A CLAIM SHALL BE IN
WRITING IN SUCH FORM AS THE COMPTROLLER MAY BY RULE PRESCRIBE AND SHALL
STATE THE SPECIFIC GROUNDS UPON WHICH IT IS FOUNDED. AS SOON AS PRACTI-
CABLE AFTER A CLAIM FOR REFUND IS FILED, THE COMPTROLLER SHALL EXAMINE
IT AND EITHER ISSUE A REFUND OR ISSUE A NOTICE OF DENIAL. IF SUCH A
PROTEST IS FILED, THE COMPTROLLER SHALL RECONSIDER THE DENIAL AND GRANT
THE EMPLOYER A HEARING. AS SOON AS PRACTICABLE AFTER SUCH RECONSIDER-
ATION AND HEARING, THE COMPTROLLER SHALL ISSUE A NOTICE OF DECISION TO
THE EMPLOYER. THE NOTICE SHALL SET FORTH BRIEFLY THE COMPTROLLER'S FIND-
INGS OF FACT AND THE BASIS OF DECISION IN EACH CASE DECIDED IN WHOLE OR
IN PART ADVERSELY TO THE EMPLOYER. A DENIAL OF A CLAIM FOR REFUND
BECOMES FINAL NINETY DAYS AFTER THE DATE OF ISSUANCE OF THE NOTICE OF
THE DENIAL EXCEPT FOR SUCH AMOUNTS DENIED AS TO WHICH THE EMPLOYER HAS
FILED A PROTEST WITH THE COMPTROLLER. IF A PROTEST HAS BEEN TIMELY
FILED, THE DECISION OF THE COMPTROLLER SHALL BECOME FINAL:
(A) IF NO ACTION FOR REVIEW OF THE DECISION IS COMMENCED ON THE DATE
ON WHICH THE TIME FOR COMMENCEMENT OF SUCH REVIEW HAS EXPIRED; OR
(B) IF A TIMELY ACTION FOR REVIEW OF THE DECISION IS COMMENCED ON THE
DATE ALL PROCEEDINGS IN COURT FOR THE REVIEW OF SUCH ASSESSMENT HAVE
S. 6045--C 11
TERMINATED OR THE TIME FOR THE TAKING THEREOF HAS EXPIRED WITHOUT SUCH
PROCEEDINGS BEING INSTITUTED.
6. NO NOTICE OF PROPOSED ASSESSMENT MAY BE ISSUED WITH RESPECT TO A
CALENDAR YEAR AFTER JUNE THIRTIETH OF THE FOURTH SUBSEQUENT CALENDAR
YEAR. NO CLAIM FOR REFUND MAY BE FILED MORE THAN ONE YEAR AFTER THE DATE
OF PAYMENT OF THE AMOUNT TO BE REFUNDED.
7. WHENEVER NOTICE IS REQUIRED BY THIS SECTION, IT MAY BE GIVEN OR
ISSUED BY MAILING IT BY FIRST-CLASS MAIL ADDRESSED TO THE PERSON
CONCERNED AT HIS OR HER LAST KNOWN ADDRESS.
8. ALL BOOKS AND RECORDS AND OTHER PAPERS AND DOCUMENTS RELEVANT TO
THE DETERMINATION OF ANY PENALTY DUE UNDER THIS SECTION SHALL, AT ALL
TIMES DURING BUSINESS HOURS OF THE DAY, BE SUBJECT TO INSPECTION BY THE
COMPTROLLER OR ITS DULY AUTHORIZED AGENTS AND EMPLOYEES.
9. THE COMPTROLLER MAY REQUIRE EMPLOYERS TO REPORT INFORMATION RELE-
VANT TO THEIR COMPLIANCE WITH THIS ARTICLE ON TAX RETURNS AND FAILURE TO
PROVIDE THE REQUESTED INFORMATION ON A RETURN SHALL CAUSE SUCH RETURN TO
BE TREATED AS UNPROCESSABLE.
10. FOR PURPOSES OF ANY PROVISION OF STATE LAW ALLOWING THE COMP-
TROLLER OR ANY OTHER AGENCY OF THIS STATE TO OFFSET AN AMOUNT OWED TO A
TAXPAYER AGAINST A TAX LIABILITY OF THAT TAXPAYER OR ALLOWING THE COMP-
TROLLER TO OFFSET AN OVERPAYMENT OF TAX AGAINST ANY LIABILITY OWED TO
THE STATE, A PENALTY ASSESSED UNDER THIS SECTION SHALL BE DEEMED TO BE A
TAX LIABILITY OF THE EMPLOYER AND ANY REFUND DUE TO AN EMPLOYER SHALL BE
DEEMED TO BE AN OVERPAYMENT OF TAX OF THE EMPLOYER.
11. EXCEPT AS PROVIDED IN THIS SUBDIVISION, ALL INFORMATION RECEIVED
BY THE COMPTROLLER FROM RETURNS FILED BY AN EMPLOYER OR FROM ANY INVES-
TIGATION CONDUCTED UNDER THE PROVISIONS OF THIS ARTICLE SHALL BE CONFI-
DENTIAL, EXCEPT FOR OFFICIAL PURPOSES WITHIN THE OFFICE OF THE COMP-
TROLLER OR PURSUANT TO OFFICIAL PROCEDURES FOR COLLECTION OF PENALTIES
ASSESSED UNDER THIS ARTICLE. NOTHING CONTAINED IN THIS SUBDIVISION
SHALL PREVENT THE DIRECTOR FROM PUBLISHING OR MAKING AVAILABLE TO THE
PUBLIC REASONABLE STATISTICS CONCERNING THE OPERATION OF THIS ARTICLE
WHEREIN THE CONTENTS OF RETURNS ARE GROUPED INTO AGGREGATES IN SUCH A
WAY THAT THE SPECIFIC INFORMATION OF ANY EMPLOYER SHALL NOT BE
DISCLOSED. NOTHING CONTAINED IN THIS SUBDIVISION SHALL PREVENT THE
DIRECTOR FROM DIVULGING INFORMATION TO AN AUTHORIZED REPRESENTATIVE OF
THE EMPLOYER OR TO ANY PERSON PURSUANT TO A REQUEST OR AUTHORIZATION
MADE BY THE EMPLOYER OR BY AN AUTHORIZED REPRESENTATIVE OF THE EMPLOYER.
12. CIVIL PENALTIES AND FEES COLLECTED UNDER THIS ARTICLE SHALL BE
DEPOSITED WITH THE COMPTROLLER FOR PURPOSES DEDICATED TO THE ADMINIS-
TRATION OF THE PROGRAM.
13. THE COMPTROLLER MAY CHARGE THE BOARD A REASONABLE FEE FOR ITS
COSTS IN PERFORMING ITS DUTIES UNDER THIS SECTION TO THE EXTENT THAT
SUCH COSTS HAVE NOT BEEN RECOVERED FROM PENALTIES IMPOSED UNDER THIS
SECTION.
14. THIS SECTION SHALL BECOME OPERATIVE NINE MONTHS AFTER THE BOARD
NOTIFIES THE DIRECTOR THAT THE PROGRAM HAS BEEN IMPLEMENTED. UPON
RECEIPT OF SUCH NOTIFICATION FROM THE BOARD, THE COMPTROLLER SHALL IMME-
DIATELY POST ON ITS INTERNET WEBSITE A NOTICE STATING THAT THIS SECTION
IS OPERATIVE AND THE DATE THAT IT IS FIRST OPERATIVE. THIS NOTICE SHALL
INCLUDE A STATEMENT THAT RATHER THAN ENROLLING EMPLOYEES IN THE PROGRAM
UNDER THIS ARTICLE, EMPLOYERS MAY SPONSOR AN ALTERNATIVE ARRANGEMENT.
S 586. DELAYED IMPLEMENTATION. IF THE BOARD DOES NOT OBTAIN ADEQUATE
FUNDS TO IMPLEMENT THE PROGRAM WITHIN THE TIME FRAME SET FORTH UNDER
THIS ARTICLE, THE BOARD MAY DELAY THE IMPLEMENTATION OF THE PROGRAM.
S. 6045--C 12
S 587. FEDERAL CONSIDERATIONS. THE BOARD SHALL REQUEST IN WRITING AN
OPINION OR RULING FROM THE APPROPRIATE ENTITY WITH JURISDICTION OVER THE
FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT REGARDING THE APPLICA-
BILITY OF THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT TO THE
PROGRAM. THE BOARD MAY NOT IMPLEMENT THE PROGRAM IF THE IRA ARRANGEMENTS
OFFERED UNDER THE PROGRAM FAIL TO QUALIFY FOR THE FAVORABLE FEDERAL
INCOME TAX TREATMENT ORDINARILY ACCORDED TO IRAS UNDER THE INTERNAL
REVENUE CODE OR IF IT IS DETERMINED THAT THE PROGRAM IS AN EMPLOYEE
BENEFIT PLAN AND STATE OR EMPLOYER LIABILITY IS ESTABLISHED UNDER THE
FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT.
S 3. The state finance law is amended by adding two new sections 99-aa
and 99-bb to read as follows:
S 99-AA. NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND. 1. THERE
IS HEREBY ESTABLISHED WITHIN THE JOINT CUSTODY OF THE COMMISSIONER OF
TAXATION AND FINANCE AND THE STATE COMPTROLLER IN CONSULTATION WITH THE
NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD, A NEW FUND TO BE
KNOWN AS THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND.
2. THE FUND SHALL INCLUDE THE INDIVIDUAL RETIREMENT ACCOUNTS OF ENROL-
LEES, WHICH SHALL BE ACCOUNTED FOR AS INDIVIDUAL ACCOUNTS.
3. MONEYS IN THE FUND SHALL CONSIST OF MONEYS RECEIVED FROM ENROLLEES
AND PARTICIPATING EMPLOYERS PURSUANT TO AUTOMATIC PAYROLL DEDUCTIONS AND
CONTRIBUTIONS TO SAVINGS MADE UNDER THE NEW YORK STATE SECURE CHOICE
SAVINGS PROGRAM PURSUANT TO ARTICLE FOURTEEN-C OF THE RETIREMENT AND
SOCIAL SECURITY LAW.
4. THE FUND SHALL BE OPERATED IN A MANNER DETERMINED BY THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM BOARD, PROVIDED THAT THE FUND IS
OPERATED SO THAT THE ACCOUNTS OF ENROLLEES ESTABLISHED UNDER THE PROGRAM
MEET THE REQUIREMENTS FOR IRAS UNDER THE INTERNAL REVENUE CODE.
5. THE AMOUNTS DEPOSITED IN THE FUND SHALL NOT CONSTITUTE PROPERTY OF
THE STATE AND THE FUND SHALL NOT BE CONSTRUED TO BE A DEPARTMENT, INSTI-
TUTION, OR AGENCY OF THE STATE. AMOUNTS ON DEPOSIT IN THE FUND SHALL NOT
BE COMMINGLED WITH STATE FUNDS AND THE STATE SHALL HAVE NO CLAIM TO OR
AGAINST, OR INTEREST IN, SUCH FUNDS.
S 99-BB. NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND. 1. THERE
IS HEREBY ESTABLISHED WITHIN THE JOINT CUSTODY OF THE COMMISSIONER OF
TAXATION AND FINANCE AND THE STATE COMPTROLLER IN CONSULTATION WITH THE
NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD, A NEW FUND TO BE
KNOWN AS THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND.
2. THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD SHALL USE
MONEYS IN THE ADMINISTRATIVE FUND TO PAY FOR ADMINISTRATIVE EXPENSES IT
INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER THE NEW YORK STATE SECURE
CHOICE SAVINGS PROGRAM PURSUANT TO ARTICLE FOURTEEN-C OF THE RETIREMENT
AND SOCIAL SECURITY LAW.
3. THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD SHALL USE
MONEYS IN THE ADMINISTRATIVE FUND TO COVER START-UP ADMINISTRATIVE
EXPENSES IT INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER ARTICLE FOUR-
TEEN-C OF THE RETIREMENT AND SOCIAL SECURITY LAW.
4. THE ADMINISTRATIVE FUND MAY RECEIVE ANY GRANTS OR OTHER MONEYS
DESIGNATED FOR ADMINISTRATIVE PURPOSES FROM THE STATE, OR ANY UNIT OF
FEDERAL OR LOCAL GOVERNMENT, OR ANY OTHER PERSON, FIRM, PARTNERSHIP, OR
CORPORATION. ANY INTEREST EARNINGS THAT ARE ATTRIBUTABLE TO MONEYS IN
THE ADMINISTRATIVE FUND MUST BE DEPOSITED INTO THE ADMINISTRATIVE FUND.
S 4. This act shall take effect immediately.
co-Sponsors
(D) 15th Senate District
(D) Senate District
(D) Senate District
(D) 14th Senate District
(D) Senate District
(D, WF) 47th Senate District
(D) Senate District
(D, WF) 21st Senate District
(D, WF) Senate District
(D) 10th Senate District
2015-S6045D (ACTIVE) - Details
- Current Committee:
- Senate Finance
- Law Section:
- Retirement and Social Security Law
- Laws Affected:
- Add Art 14-C §§570 - 587, R & SS L; add §§99-aa & 99-bb, St Fin L
- Versions Introduced in 2017-2018 Legislative Session:
-
S4344
2015-S6045D (ACTIVE) - Summary
Creates a self-sufficient retirement savings program in the form of an automatic enrollment payroll deduction IRA, and establishes an administrative board responsible for promoting greater retirement savings for private sector employees in a convenient, low-cost, and transferable manner.
2015-S6045D (ACTIVE) - Sponsor Memo
BILL NUMBER: S6045D
TITLE OF BILL : An act to amend the retirement and social security
law and the state finance law, in relation to enacting the New York
state secure choice savings program act
PURPOSE OR GENERAL IDEA OF BILL :
The purpose of this is bill to create a self-sufficient retirement
savings program in the form of an automatic enrollment payroll
deduction IRA, and establish an administrative board responsible for
promoting greater retirement savings for private sector employees in a
convenient, low-cost, and transferable manner.
SUMMARY OF SPECIFIC PROVISIONS :
Section 1 titles the Act the "New York State Secure Choice Savings
Program Act".
Section 2 amends the retirement and social security law to add a new
article, 14-C.
*Section 570 defines terms: program established, composition of the
board, fiduciary duty, duties of the board, risk management,
investment firms, investment options, benefits, employer and employee
information packets and disclosure forms, program implementation and
enrollment, payments, duty and liability of the state, duty and liability of participating employers, audit and reports, penalties, delayed implementation, and federal considerations. *Section 571 establishes the New York State Secure Choice Savings Program, in the form of an automatic enrollment payroll deduction IRA, to administered by the New York Secure Choice Savings Board. Section 572 Establishes the New York state secure choice savings board, composed of eight appointed members. *Section 573 Outlines the fiduciary responsibilities and duties of the savings board. *Section 574 Outlines the responsibilities and other duties of the savings board. *Section 575 Requires the board to annually prepare and adopt a written statement outlining the provisions associated with risk management. *Section 576 permits the board to, by competitive bid, engage investment manager(s) *Section 577 outlines investment options *Section 578 provides that interest lost or gained shall be allocated in to individuals accounts *Section 579 Provides for the creation and distribution of employer and employee information packets and disclosure forms. *Section 580 Implements the New York state secure savings program within twenty four months after the effective date of this article. *Section 581 -- provides that mechanism to pay into fund employee contributions through payroll deductions *Section 582 Maintains that the state of New York shall have no duty or liability to any party for the payment of any retirement savings benefits accrued by any individual under the program. *Section 583 - provides employers with relief from employees investment decisions Section 584 Requires the board to submit annual financial reports and audits. Section 585 Enacts penalties for enrollment failure. *Section 586 provides for delay of implementation if sufficient funds are not available *Section 587 requires Board to request a ruling or opinion from Federal Government on applicability of ERISA laws on program. *Section 3 - amends state finance law by adding two new sections *Section 99-aa - creates the New York state secure choice savings program fund *Section 99-bb - creates the New York state secure choice administrative fund. JUSTIFICATION : According to a survey by the Bureau of Labor Statistics, 97% of privately owned establishments, employing 500 workers or more, offer retirement and health benefits. That percentage is halved when compared to establishments with less than 49 workers. Moreover, in 2014 President Barrack Obama suggested that states need to do more to provide workers with options to fund retirement plans due to congressional inaction. This legislation would provide employees of smaller establishment's access to retirement saving options. PRIOR LEGISLATIVE HISTORY : none FISCAL IMPLICATIONS : To Be Determined EFFECTIVE DATE : Immediately
2015-S6045D (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K
________________________________________________________________________
6045--D
2015-2016 Regular Sessions
I N S E N A T E
September 11, 2015
___________
Introduced by Sens. SAVINO, ADDABBO, AVELLA, CARLUCCI, COMRIE, HAMILTON,
HOYLMAN, PANEPINTO, PARKER, PERALTA, SANDERS -- read twice and ordered
printed, and when printed to be committed to the Committee on Rules --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- recommitted to the Committee on Civil
Service and Pensions in accordance with Senate Rule 6, sec. 8 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- reported favorably from said commit-
tee and committed to the Committee on Finance -- committee discharged,
bill amended, ordered reprinted as amended and recommitted to said
committee -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the retirement and social security law and the state
finance law, in relation to enacting the New York state secure choice
savings program act
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "New York state secure choice savings program act".
S 2. The retirement and social security law is amended by adding a new
article 14-C to read as follows:
ARTICLE 14-C
NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
SECTION 570. DEFINITIONS.
571. PROGRAM ESTABLISHED.
572. COMPOSITION OF THE BOARD.
573. FIDUCIARY DUTY.
574. DUTIES OF THE BOARD.
575. RISK MANAGEMENT.
576. INVESTMENT FIRMS.
577. INVESTMENT OPTIONS.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11645-18-6
S. 6045--D 2
578. BENEFITS.
579. EMPLOYER AND EMPLOYEE INFORMATION PACKETS AND DISCLOSURE
FORMS.
580. PROGRAM IMPLEMENTATION AND ENROLLMENT.
581. PAYMENTS.
582. DUTY AND LIABILITY OF THE STATE.
583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS.
584. AUDIT AND REPORTS.
585. PENALTIES.
586. DELAYED IMPLEMENTATION.
S 570. DEFINITIONS. ALL TERMS SHALL HAVE THE SAME MEANING AS WHEN USED
IN A COMPARABLE CONTEXT IN THE INTERNAL REVENUE CODE. AS USED IN THIS
ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
1. "BOARD" SHALL MEAN THE NEW YORK SECURE CHOICE SAVINGS BOARD ESTAB-
LISHED UNDER THIS ARTICLE.
2. "SUPERINTENDENT" SHALL MEAN THE SUPERINTENDENT OF THE DEPARTMENT OF
FINANCIAL SERVICES.
2-A. "COMPTROLLER" SHALL MEAN THE COMPTROLLER OF THE STATE.
3. "EMPLOYEE" SHALL MEAN ANY INDIVIDUAL WHO IS EIGHTEEN YEARS OF AGE
OR OLDER, WHO IS EMPLOYED BY AN EMPLOYER, AND WHO EARNED WAGES WORKING
FOR AN EMPLOYER IN NEW YORK STATE DURING A CALENDAR YEAR.
4. "EMPLOYER" SHALL MEAN A PERSON OR ENTITY ENGAGED IN A BUSINESS,
INDUSTRY, PROFESSION, TRADE, OR OTHER ENTERPRISE IN NEW YORK STATE,
WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT (I) HAS AT ALL TIMES DURING
THE PREVIOUS CALENDAR YEAR EMPLOYED AT LEAST TWENTY-FIVE EMPLOYEES IN
THE STATE, (II) HAS BEEN IN BUSINESS AT LEAST TWO YEARS, AND (III) HAS
NOT OFFERED A QUALIFIED RETIREMENT PLAN, INCLUDING, BUT NOT LIMITED TO,
A PLAN QUALIFIED UNDER SECTIONS 401(A), 401(K), 403(A), 403(B), 408(K),
408(P) OR 457(B) OF THE INTERNAL REVENUE CODE OF 1986 IN THE PRECEDING
TWO YEARS.
5. "ENROLLEE" SHALL MEAN ANY EMPLOYEE WHO IS ENROLLED IN THE PROGRAM.
6. "FUND" SHALL MEAN THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
FUND.
7. "INTERNAL REVENUE CODE" SHALL MEAN THE INTERNAL REVENUE CODE OF
1986, OR ANY SUCCESSOR LAW, IN EFFECT FOR THE CALENDAR YEAR.
8. "IRA" SHALL MEAN A ROTH IRA (INDIVIDUAL RETIREMENT ACCOUNT).
9. "PARTICIPATING EMPLOYER" SHALL MEAN AN EMPLOYER OR SMALL EMPLOYER
THAT PROVIDES A PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT AS
PROVIDED FOR BY THIS ARTICLE FOR ITS EMPLOYEES WHO ARE ENROLLEES IN THE
PROGRAM.
10. "PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT" SHALL MEAN AN
ARRANGEMENT BY WHICH A PARTICIPATING EMPLOYER ALLOWS ENROLLEES TO REMIT
PAYROLL DEDUCTION CONTRIBUTIONS TO THE PROGRAM.
11. "PROGRAM" SHALL MEAN THE NEW YORK STATE SECURE CHOICE SAVINGS
PROGRAM.
12. "SMALL EMPLOYER" SHALL MEAN A PERSON OR ENTITY ENGAGED IN A BUSI-
NESS, INDUSTRY, PROFESSION, TRADE, OR OTHER ENTERPRISE IN NEW YORK
STATE, WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT (I) EMPLOYED LESS THAN
TWENTY-FIVE EMPLOYEES AT ANY ONE TIME IN THE STATE THROUGHOUT THE PREVI-
OUS CALENDAR YEAR, OR (II) HAS BEEN IN BUSINESS LESS THAN TWO YEARS, OR
BOTH ITEMS (I) AND (II), BUT THAT NOTIFIES THE COMPTROLLER THAT IT IS
INTERESTED IN BEING A PARTICIPATING EMPLOYER.
13. "WAGES" MEANS ANY COMPENSATION WITHIN THE MEANING OF SECTION
219(F)(1) OF THE INTERNAL REVENUE CODE THAT IS RECEIVED BY AN ENROLLEE
FROM A PARTICIPATING EMPLOYER DURING THE CALENDAR YEAR.
S. 6045--D 3
S 571. PROGRAM ESTABLISHED. A RETIREMENT SAVINGS PROGRAM IN THE FORM
OF AN AUTOMATIC ENROLLMENT PAYROLL DEDUCTION IRA, KNOWN AS THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM, IS HEREBY ESTABLISHED AND SHALL BE
ADMINISTERED BY THE BOARD FOR THE PURPOSE OF PROMOTING GREATER RETIRE-
MENT SAVINGS FOR PRIVATE-SECTOR EMPLOYEES IN A CONVENIENT, LOW-COST, AND
PORTABLE MANNER.
S 572. COMPOSITION OF THE BOARD. THERE IS HEREBY CREATED THE NEW YORK
STATE SECURE CHOICE SAVINGS BOARD.
1. THE BOARD SHALL CONSIST OF THE FOLLOWING EIGHT MEMBERS:
(A) THE STATE COMPTROLLER, OR HIS OR HER DESIGNEE, WHO SHALL SERVE AS
CHAIR;
(B) THE SUPERINTENDENT, OR HIS OR HER DESIGNEE;
(C) TWO PUBLIC REPRESENTATIVES WITH EXPERTISE IN RETIREMENT SAVINGS
PLAN ADMINISTRATION OR INVESTMENT, OR BOTH, ONE OF WHOM SHALL BE
APPOINTED BY THE SPEAKER OF THE ASSEMBLY AND ONE OF WHOM SHALL BE
APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE;
(D) A REPRESENTATIVE OF PARTICIPATING EMPLOYERS, APPOINTED BY THE
GOVERNOR;
(E) A REPRESENTATIVE OF ENROLLEES, APPOINTED BY THE GOVERNOR;
(F) THE CHAIR OF THE ASSEMBLY GOVERNMENTAL EMPLOYEES COMMITTEE; AND
(G) THE CHAIR OF THE SENATE CIVIL SERVICE AND PENSION COMMITTEE.
2. MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION BUT MAY BE
REIMBURSED FOR NECESSARY TRAVEL EXPENSES INCURRED IN CONNECTION WITH
THEIR BOARD DUTIES FROM FUNDS APPROPRIATED FOR THE PURPOSE.
3. THE INITIAL APPOINTMENTS SHALL BE AS FOLLOWS: ONE PUBLIC REPRESEN-
TATIVE FOR FOUR YEARS; THE REPRESENTATIVE OF PARTICIPATING EMPLOYERS FOR
THREE YEARS; AND THE REPRESENTATIVE OF ENROLLEES FOR THREE YEARS. THER-
EAFTER, ALL THE GOVERNOR'S APPOINTEES SHALL BE FOR TERMS OF FOUR YEARS.
4. A VACANCY IN THE TERM OF AN APPOINTED BOARD MEMBER SHALL BE FILLED
FOR THE BALANCE OF THE UNEXPIRED TERM IN THE SAME MANNER AS THE ORIGINAL
APPOINTMENT.
5. EACH APPOINTMENT BY THE GOVERNOR SHALL BE SUBJECT TO APPROVAL BY
THE COMPTROLLER, WHO, UPON APPROVAL, SHALL CERTIFY HIS OR HER APPROVAL
TO THE SECRETARY OF STATE.
S 573. FIDUCIARY DUTY. THE BOARD, THE INDIVIDUAL MEMBERS OF THE BOARD,
THE TRUSTEES, ANY OTHER AGENTS APPOINTED OR ENGAGED BY THE BOARD, AND
ALL PERSONS SERVING AS PROGRAM STAFF SHALL DISCHARGE THEIR DUTIES WITH
RESPECT TO THE PROGRAM SOLELY IN THE INTEREST OF THE PROGRAM'S ENROLLEES
AND BENEFICIARIES AS FOLLOWS:
1. FOR THE EXCLUSIVE PURPOSES OF PROVIDING BENEFITS TO ENROLLEES AND
BENEFICIARIES AND DEFRAYING REASONABLE EXPENSES OF ADMINISTERING THE
PROGRAM;
2. BY INVESTING WITH THE CARE, SKILL, PRUDENCE, AND DILIGENCE UNDER
THE PREVAILING CIRCUMSTANCES THAT A PRUDENT PERSON ACTING IN A LIKE
CAPACITY AND FAMILIAR WITH THOSE MATTERS WOULD USE IN THE CONDUCT OF AN
ENTERPRISE OF A LIKE CHARACTER AND WITH LIKE AIMS; AND
3. BY USING ANY CONTRIBUTIONS PAID BY EMPLOYEES AND EMPLOYERS REMIT-
TING EMPLOYEES' OWN CONTRIBUTIONS INTO THE TRUST EXCLUSIVELY FOR THE
PURPOSE OF PAYING BENEFITS TO THE ENROLLEES OF THE PROGRAM, FOR THE COST
OF ADMINISTRATION OF THE PROGRAM, AND FOR INVESTMENTS MADE FOR THE BENE-
FIT OF THE PROGRAM.
S 574. DUTIES OF THE BOARD. IN ADDITION TO THE OTHER DUTIES AND
RESPONSIBILITIES STATED IN THIS ARTICLE, THE BOARD SHALL:
1. CAUSE THE PROGRAM TO BE DESIGNED, ESTABLISHED AND OPERATED IN A
MANNER THAT:
(A) ACCORDS WITH BEST PRACTICES FOR RETIREMENT SAVINGS VEHICLES;
S. 6045--D 4
(B) MAXIMIZES PARTICIPATION, SAVINGS, AND SOUND INVESTMENT PRACTICES;
(C) MAXIMIZES SIMPLICITY, INCLUDING EASE OF ADMINISTRATION FOR PARTIC-
IPATING EMPLOYERS AND ENROLLEES;
(D) PROVIDES AN EFFICIENT PRODUCT TO ENROLLEES BY POOLING INVESTMENT
FUNDS;
(E) ENSURES THE PORTABILITY OF BENEFITS; AND
(F) PROVIDES FOR THE DEACCUMULATION OF ENROLLEE ASSETS IN A MANNER
THAT MAXIMIZES FINANCIAL SECURITY IN RETIREMENT.
2. APPOINT A TRUSTEE TO THE IRA FUND IN COMPLIANCE WITH SECTION 408 OF
THE INTERNAL REVENUE CODE.
3. EXPLORE AND ESTABLISH INVESTMENT OPTIONS, SUBJECT TO THIS ARTICLE,
THAT OFFER ENROLLEES RETURNS ON CONTRIBUTIONS AND THE CONVERSION OF
INDIVIDUAL RETIREMENT SAVINGS ACCOUNT BALANCES TO SECURE RETIREMENT
INCOME WITHOUT INCURRING DEBT OR LIABILITIES TO THE STATE.
4. ESTABLISH THE PROCESS BY WHICH INTEREST, INVESTMENT EARNINGS, AND
INVESTMENT LOSSES ARE ALLOCATED TO INDIVIDUAL PROGRAM ACCOUNTS ON A PRO
RATA BASIS AND ARE COMPUTED AT THE INTEREST RATE ON THE BALANCE OF AN
INDIVIDUAL'S ACCOUNT.
5. MAKE AND ENTER INTO CONTRACTS NECESSARY FOR THE ADMINISTRATION OF
THE PROGRAM AND FUND, INCLUDING, BUT NOT LIMITED TO, RETAINING AND
CONTRACTING WITH INVESTMENT MANAGERS, PRIVATE FINANCIAL INSTITUTIONS,
OTHER FINANCIAL AND SERVICE PROVIDERS, CONSULTANTS, ACTUARIES, COUNSEL,
AUDITORS, THIRD-PARTY ADMINISTRATORS, AND OTHER PROFESSIONALS AS NECES-
SARY.
6. CONDUCT A REVIEW OF THE PERFORMANCE OF ANY INVESTMENT VENDORS EVERY
FOUR YEARS, INCLUDING, BUT NOT LIMITED TO, A REVIEW OF RETURNS, FEES,
AND CUSTOMER SERVICE. A COPY OF REVIEWS SHALL BE POSTED TO THE BOARD'S
INTERNET WEBSITE.
7. DETERMINE THE NUMBER AND DUTIES OF STAFF MEMBERS NEEDED TO ADMINIS-
TER THE PROGRAM AND ASSEMBLE SUCH A STAFF, INCLUDING, AS NEEDED, EMPLOY-
ING STAFF, AND APPOINTING A PROGRAM ADMINISTRATOR.
8. CAUSE MONEYS IN THE FUND TO BE HELD AND INVESTED AS POOLED INVEST-
MENTS DESCRIBED IN THIS ARTICLE, WITH A VIEW TO ACHIEVING COST SAVINGS
THROUGH EFFICIENCIES AND ECONOMIES OF SCALE.
9. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN ENROLLEE IS ABLE TO
CONTRIBUTE A PORTION OF HIS OR HER WAGES TO THE PROGRAM FOR AUTOMATIC
DEPOSIT OF THOSE CONTRIBUTIONS AND THE PROCESS BY WHICH THE PARTICIPAT-
ING EMPLOYER PROVIDES A PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT
TO FORWARD THOSE CONTRIBUTIONS AND RELATED INFORMATION TO THE PROGRAM,
INCLUDING, BUT NOT LIMITED TO, CONTRACTING WITH FINANCIAL SERVICE COMPA-
NIES AND THIRD-PARTY ADMINISTRATORS WITH THE CAPABILITY TO RECEIVE AND
PROCESS EMPLOYEE INFORMATION AND CONTRIBUTIONS FOR PAYROLL DEPOSIT
RETIREMENT SAVINGS ARRANGEMENTS OR SIMILAR ARRANGEMENTS.
10. DESIGN AND ESTABLISH THE PROCESS FOR ENROLLMENT INCLUDING THE
PROCESS BY WHICH AN EMPLOYEE CAN OPT NOT TO PARTICIPATE IN THE PROGRAM,
SELECT A CONTRIBUTION LEVEL, SELECT AN INVESTMENT OPTION, AND TERMINATE
PARTICIPATION IN THE PROGRAM.
11. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN EMPLOYEE MAY VOLUN-
TARILY ENROLL IN AND MAKE CONTRIBUTIONS TO THE PROGRAM.
12. ACCEPT ANY GRANTS, APPROPRIATIONS, OR OTHER MONEYS FROM THE STATE,
ANY UNIT OF FEDERAL, STATE, OR LOCAL GOVERNMENT, OR ANY OTHER PERSON,
FIRM, PARTNERSHIP, OR CORPORATION SOLELY FOR DEPOSIT INTO THE FUND,
WHETHER FOR INVESTMENT OR ADMINISTRATIVE PURPOSES.
13. EVALUATE THE NEED FOR, AND PROCURE AS NEEDED, INSURANCE AGAINST
ANY AND ALL LOSS IN CONNECTION WITH THE PROPERTY, ASSETS, OR ACTIVITIES
OF THE PROGRAM, AND INDEMNIFY AS NEEDED EACH MEMBER OF THE BOARD FROM
S. 6045--D 5
PERSONAL LOSS OR LIABILITY RESULTING FROM A MEMBER'S ACTION OR INACTION
AS A MEMBER OF THE BOARD.
14. MAKE PROVISIONS FOR THE PAYMENT OF ADMINISTRATIVE COSTS AND
EXPENSES FOR THE CREATION, MANAGEMENT, AND OPERATION OF THE PROGRAM.
SUBJECT TO APPROPRIATION, THE STATE MAY PAY ADMINISTRATIVE COSTS ASSOCI-
ATED WITH THE CREATION AND MANAGEMENT OF THE PROGRAM UNTIL SUFFICIENT
ASSETS ARE AVAILABLE IN THE FUND FOR THAT PURPOSE. THEREAFTER, ALL
ADMINISTRATIVE COSTS OF THE FUND, INCLUDING REPAYMENT OF ANY START-UP
FUNDS PROVIDED BY THE STATE, SHALL BE PAID ONLY OUT OF MONEYS ON DEPOSIT
THEREIN. HOWEVER, PRIVATE FUNDS OR FEDERAL FUNDING RECEIVED IN ORDER TO
IMPLEMENT THE PROGRAM UNTIL THE FUND IS SELF-SUSTAINING SHALL NOT BE
REPAID UNLESS THOSE FUNDS WERE OFFERED CONTINGENT UPON THE PROMISE OF
SUCH REPAYMENT. THE BOARD SHALL KEEP ANNUAL ADMINISTRATIVE EXPENSES AS
LOW AS POSSIBLE, BUT IN NO EVENT SHALL THEY EXCEED 0.75% OF THE TOTAL
TRUST BALANCE.
15. ALLOCATE ADMINISTRATIVE FEES TO INDIVIDUAL RETIREMENT ACCOUNTS IN
THE PROGRAM ON A PRO RATA BASIS.
16. SET MINIMUM AND MAXIMUM CONTRIBUTION LEVELS IN ACCORDANCE WITH
LIMITS ESTABLISHED FOR IRAS BY THE INTERNAL REVENUE CODE.
17. FACILITATE EDUCATION AND OUTREACH TO EMPLOYERS AND EMPLOYEES.
18. FACILITATE COMPLIANCE BY THE PROGRAM WITH ALL APPLICABLE REQUIRE-
MENTS FOR THE PROGRAM UNDER THE INTERNAL REVENUE CODE, INCLUDING TAX
QUALIFICATION REQUIREMENTS OR ANY OTHER APPLICABLE LAW AND ACCOUNTING
REQUIREMENTS.
19. CARRY OUT THE DUTIES AND OBLIGATIONS OF THE PROGRAM IN AN EFFEC-
TIVE, EFFICIENT, AND LOW-COST MANNER.
20. EXERCISE ANY AND ALL OTHER POWERS REASONABLY NECESSARY FOR THE
EFFECTUATION OF THE PURPOSES, OBJECTIVES, AND PROVISIONS OF THIS ARTICLE
PERTAINING TO THE PROGRAM.
21. DEPOSIT INTO THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND
ALL GRANTS, GIFTS, DONATIONS, FEES, AND EARNINGS FROM INVESTMENTS FROM
THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND THAT ARE USED TO
RECOVER ADMINISTRATIVE COSTS. ALL EXPENSES OF THE BOARD SHALL BE PAID
FROM THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND.
22. DETERMINE WITHDRAWAL PROVISIONS, SUCH AS ECONOMIC HARDSHIPS,
PORTABILITY AND LEAKAGE.
23. DETERMINE EMPLOYEE RIGHTS AND ENFORCEMENT OF PENALTIES.
S 575. RISK MANAGEMENT. THE BOARD SHALL ANNUALLY PREPARE AND ADOPT A
WRITTEN STATEMENT OF INVESTMENT POLICY THAT INCLUDES A RISK MANAGEMENT
AND OVERSIGHT PROGRAM. THIS INVESTMENT POLICY SHALL PROHIBIT THE BOARD,
PROGRAM, AND FUND FROM BORROWING FOR INVESTMENT PURPOSES. THE RISK
MANAGEMENT AND OVERSIGHT PROGRAM SHALL BE DESIGNED TO ENSURE THAT AN
EFFECTIVE RISK MANAGEMENT SYSTEM IS IN PLACE TO MONITOR THE RISK LEVELS
OF THE PROGRAM AND FUND PORTFOLIO, TO ENSURE THAT THE RISKS TAKEN ARE
PRUDENT AND PROPERLY MANAGED, TO PROVIDE AN INTEGRATED PROCESS FOR OVER-
ALL RISK MANAGEMENT, AND TO ASSESS INVESTMENT RETURNS AS WELL AS RISK TO
DETERMINE IF THE RISKS TAKEN ARE ADEQUATELY COMPENSATED COMPARED TO
APPLICABLE PERFORMANCE BENCHMARKS AND STANDARDS. THE BOARD SHALL CONSID-
ER THE STATEMENT OF INVESTMENT POLICY AND ANY CHANGES IN THE INVESTMENT
POLICY AT A PUBLIC HEARING.
S 576. INVESTMENT FIRMS. 1. THE BOARD SHALL ENGAGE, AFTER AN OPEN BID
PROCESS, AN INVESTMENT MANAGER OR MANAGERS TO INVEST THE FUND AND ANY
OTHER ASSETS OF THE PROGRAM. MONEYS IN THE FUND MAY BE INVESTED OR REIN-
VESTED BY THE COMPTROLLER OR MAY BE INVESTED IN WHOLE OR IN PART. IN
SELECTING THE INVESTMENT MANAGER OR MANAGERS, THE BOARD SHALL TAKE INTO
S. 6045--D 6
CONSIDERATION AND GIVE WEIGHT TO THE INVESTMENT MANAGER'S FEES AND
CHARGES IN ORDER TO REDUCE THE PROGRAM'S ADMINISTRATIVE EXPENSES.
2. THE INVESTMENT MANAGER OR MANAGERS SHALL COMPLY WITH ANY AND ALL
APPLICABLE FEDERAL AND STATE LAWS, RULES, AND REGULATIONS, AS WELL AS
ANY AND ALL RULES, POLICIES, AND GUIDELINES PROMULGATED BY THE BOARD
WITH RESPECT TO THE PROGRAM AND THE INVESTMENT OF THE FUND, INCLUDING,
BUT NOT LIMITED TO, THE INVESTMENT POLICY.
3. THE INVESTMENT MANAGER OR MANAGERS SHALL PROVIDE SUCH REPORTS AS
THE BOARD DEEMS NECESSARY FOR THE BOARD TO OVERSEE EACH INVESTMENT
MANAGER'S PERFORMANCE AND THE PERFORMANCE OF THE FUND.
S 577. INVESTMENT OPTIONS. 1. THE BOARD SHALL ESTABLISH AS AN INVEST-
MENT OPTION A LIFE-CYCLE FUND WITH A TARGET DATE BASED UPON THE AGE OF
THE ENROLLEE. THIS SHALL BE THE DEFAULT INVESTMENT OPTION FOR ENROLLEES
WHO FAIL TO ELECT AN INVESTMENT OPTION UNLESS AND UNTIL THE BOARD DESIG-
NATES BY RULE A NEW INVESTMENT OPTION AS THE DEFAULT.
2. THE BOARD MAY ALSO ESTABLISH ANY OR ALL OF THE FOLLOWING ADDITIONAL
INVESTMENT OPTIONS:
(A) A CONSERVATIVE PRINCIPAL PROTECTION FUND;
(B) A GROWTH FUND;
(C) A SECURE RETURN FUND WHOSE PRIMARY OBJECTIVE IS THE PRESERVATION
OF THE SAFETY OF PRINCIPAL AND THE PROVISION OF A STABLE AND LOW-RISK
RATE OF RETURN; IF THE BOARD ELECTS TO ESTABLISH A SECURE RETURN FUND,
THE BOARD MAY PROCURE ANY INSURANCE, ANNUITY, OR OTHER PRODUCT TO INSURE
THE VALUE OF ENROLLEES' ACCOUNTS AND GUARANTEE A RATE OF RETURN; THE
COST OF SUCH FUNDING MECHANISM SHALL BE PAID OUT OF THE FUND; UNDER NO
CIRCUMSTANCES SHALL THE BOARD, PROGRAM, FUND, THE STATE, OR ANY PARTIC-
IPATING EMPLOYER ASSUME ANY LIABILITY FOR INVESTMENT OR ACTUARIAL RISK;
THE BOARD SHALL DETERMINE WHETHER TO ESTABLISH SUCH INVESTMENT OPTIONS
BASED UPON AN ANALYSIS OF THEIR COST, RISK PROFILE, BENEFIT LEVEL,
FEASIBILITY, AND EASE OF IMPLEMENTATION; OR
(D) AN ANNUITY FUND.
3. IF THE BOARD ELECTS TO ESTABLISH A SECURE RETURN FUND, THE BOARD
SHALL THEN DETERMINE WHETHER SUCH OPTION SHALL REPLACE THE TARGET DATE
OR LIFE-CYCLE FUND AS THE DEFAULT INVESTMENT OPTION FOR ENROLLEES WHO DO
NOT ELECT AN INVESTMENT OPTION. IN MAKING SUCH DETERMINATION, THE BOARD
SHALL CONSIDER THE COST, RISK PROFILE, BENEFIT LEVEL, AND EASE OF
ENROLLMENT IN THE SECURE RETURN FUND. THE BOARD MAY AT ANY TIME THERE-
AFTER REVISIT THIS QUESTION AND, BASED UPON AN ANALYSIS OF THESE CRITE-
RIA, ESTABLISH EITHER THE SECURE RETURN FUND OR THE LIFE-CYCLE FUND AS
THE DEFAULT FOR ENROLLEES WHO DO NOT ELECT AN INVESTMENT OPTION.
S 578. BENEFITS. INTEREST, INVESTMENT EARNINGS, AND INVESTMENT LOSSES
SHALL BE ALLOCATED TO INDIVIDUAL PROGRAM ACCOUNTS AS ESTABLISHED BY THE
BOARD PURSUANT TO THIS ARTICLE. AN INDIVIDUAL'S RETIREMENT SAVINGS BENE-
FIT UNDER THE PROGRAM SHALL BE AN AMOUNT EQUAL TO THE BALANCE IN THE
INDIVIDUAL'S PROGRAM ACCOUNT ON THE DATE THE RETIREMENT SAVINGS BENEFIT
BECOMES PAYABLE. THE STATE SHALL HAVE NO LIABILITY FOR THE PAYMENT OF
ANY BENEFIT TO ANY ENROLLEE IN THE PROGRAM.
S 579. EMPLOYER AND EMPLOYEE INFORMATION PACKETS AND DISCLOSURE FORMS.
1. PRIOR TO THE OPENING OF THE PROGRAM FOR ENROLLMENT, THE BOARD SHALL
DESIGN AND DISSEMINATE TO ALL EMPLOYERS AN EMPLOYER INFORMATION PACKET
AND AN EMPLOYEE INFORMATION PACKET, WHICH SHALL INCLUDE BACKGROUND
INFORMATION ON THE PROGRAM, APPROPRIATE DISCLOSURES FOR EMPLOYEES, AND
INFORMATION REGARDING THE VENDOR INTERNET WEBSITE DESCRIBED.
2. THE BOARD SHALL PROVIDE FOR THE CONTENTS OF BOTH THE EMPLOYEE
INFORMATION PACKET AND THE EMPLOYER INFORMATION PACKET. THE EMPLOYEE
INFORMATION PACKET SHALL BE MADE AVAILABLE IN ENGLISH, SPANISH, HAITIAN
S. 6045--D 7
CREOLE, CHINESE, KOREAN, RUSSIAN, ARABIC, AND ANY OTHER LANGUAGE THE
COMPTROLLER DEEMS NECESSARY.
3. THE EMPLOYEE INFORMATION PACKET SHALL INCLUDE A DISCLOSURE FORM.
THE DISCLOSURE FORM SHALL EXPLAIN, BUT NOT BE LIMITED TO, ALL OF THE
FOLLOWING:
(A) THE BENEFITS AND RISKS ASSOCIATED WITH MAKING CONTRIBUTIONS TO THE
PROGRAM;
(B) THE MECHANICS OF HOW TO MAKE CONTRIBUTIONS TO THE PROGRAM;
(C) HOW TO OPT OUT OF THE PROGRAM;
(D) HOW TO PARTICIPATE IN THE PROGRAM WITH A LEVEL OF EMPLOYEE
CONTRIBUTIONS OTHER THAN THREE PERCENT;
(E) THAT THEY ARE NOT REQUIRED TO PARTICIPATE OR CONTRIBUTE MORE THAN
THREE PERCENT;
(F) THAT THEY CAN OPT OUT AFTER THEY HAVE ENROLLED;
(G) THE PROCESS FOR WITHDRAWAL OF RETIREMENT SAVINGS;
(H) HOW TO OBTAIN ADDITIONAL INFORMATION ABOUT THE PROGRAM;
(I) THAT EMPLOYEES SEEKING FINANCIAL ADVICE SHOULD CONTACT FINANCIAL
ADVISORS, THAT PARTICIPATING EMPLOYERS ARE NOT IN A POSITION TO PROVIDE
FINANCIAL ADVICE, AND THAT PARTICIPATING EMPLOYERS ARE NOT LIABLE FOR
DECISIONS EMPLOYEES MAKE PURSUANT TO THIS ARTICLE;
(J) INFORMATION ON HOW TO ACCESS ANY FINANCIAL LITERACY PROGRAMS
IMPLEMENTED BY THE COMPTROLLER;
(K) THAT THE PROGRAM IS NOT AN EMPLOYER-SPONSORED RETIREMENT PLAN; AND
(L) THAT THE PROGRAM FUND IS NOT GUARANTEED BY THE STATE.
4. THE EMPLOYEE INFORMATION PACKET SHALL ALSO INCLUDE A FORM FOR AN
EMPLOYEE TO NOTE HIS OR HER DECISION TO OPT OUT OF PARTICIPATION IN THE
PROGRAM OR ELECT TO PARTICIPATE WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS
OTHER THAN THREE PERCENT.
5. PARTICIPATING EMPLOYERS SHALL SUPPLY THE EMPLOYEE INFORMATION PACK-
ET TO EMPLOYEES UPON LAUNCH OF THE PROGRAM. PARTICIPATING EMPLOYERS
SHALL SUPPLY THE EMPLOYEE INFORMATION PACKET TO NEW EMPLOYEES AT THE
TIME OF HIRING, AND NEW EMPLOYEES MAY OPT OUT OF PARTICIPATION IN THE
PROGRAM OR ELECT TO PARTICIPATE WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS
OTHER THAN THREE PERCENT AT THAT TIME.
S 580. PROGRAM IMPLEMENTATION AND ENROLLMENT. EXCEPT AS OTHERWISE
PROVIDED IN THIS ARTICLE, THE PROGRAM SHALL BE IMPLEMENTED, AND ENROLL-
MENT OF EMPLOYEES SHALL BEGIN, WITHIN TWENTY-FOUR MONTHS AFTER THE
EFFECTIVE DATE OF THIS ARTICLE. THE PROVISIONS OF THIS SECTION SHALL BE
IN FORCE AFTER THE BOARD OPENS THE PROGRAM FOR ENROLLMENT.
1. EACH PARTICIPATING EMPLOYER SHALL ESTABLISH A PAYROLL DEPOSIT
RETIREMENT SAVINGS ARRANGEMENT TO ALLOW EACH EMPLOYEE TO PARTICIPATE IN
THE PROGRAM AT MOST NINE MONTHS AFTER THE BOARD OPENS THE PROGRAM FOR
ENROLLMENT.
2. PARTICIPATING EMPLOYERS SHALL AUTOMATICALLY ENROLL IN THE PROGRAM
EACH OF THEIR EMPLOYEES WHO HAS NOT OPTED OUT OF PARTICIPATION IN THE
PROGRAM USING THE FORM DESCRIBED IN THIS ARTICLE AND SHALL PROVIDE
PAYROLL DEDUCTION RETIREMENT SAVINGS ARRANGEMENTS FOR SUCH EMPLOYEES AND
DEPOSIT, ON BEHALF OF SUCH EMPLOYEES, THESE FUNDS INTO THE PROGRAM.
SMALL EMPLOYERS WITH LESS THAN TWENTY-FIVE EMPLOYEES MAY, BUT ARE NOT
REQUIRED TO, OPT INTO THE PROGRAM, BUT ONLY IF THEIR EMPLOYEES OPT IN TO
PROVIDE PAYROLL DEDUCTION RETIREMENT SAVINGS ARRANGEMENTS FOR EACH
EMPLOYEE WHO ELECTS TO PARTICIPATE IN THE PROGRAM.
3. ENROLLEES SHALL HAVE THE ABILITY TO SELECT A CONTRIBUTION LEVEL
INTO THE FUND. THIS LEVEL MAY BE EXPRESSED AS A PERCENTAGE OF WAGES OR
AS A DOLLAR AMOUNT UP TO THE DEDUCTIBLE AMOUNT FOR THE ENROLLEE'S TAXA-
BLE YEAR UNDER SECTION 219(B)(1)(A) OF THE INTERNAL REVENUE CODE. ENROL-
S. 6045--D 8
LEES MAY CHANGE THEIR CONTRIBUTION LEVEL AT ANY TIME, SUBJECT TO RULES
PROMULGATED BY THE BOARD. IF AN ENROLLEE FAILS TO SELECT A CONTRIBUTION
LEVEL USING THE FORM DESCRIBED IN THIS ARTICLE, THEN HE OR SHE SHALL
CONTRIBUTE THREE PERCENT OF HIS OR HER WAGES TO THE PROGRAM, PROVIDED
THAT SUCH CONTRIBUTIONS SHALL NOT CAUSE THE ENROLLEE'S TOTAL CONTRIB-
UTIONS TO IRAS FOR THE YEAR TO EXCEED THE DEDUCTIBLE AMOUNT FOR THE
ENROLLEE'S TAXABLE YEAR UNDER SECTION 219(B)(1)(A) OF THE INTERNAL
REVENUE CODE.
4. ENROLLEES MAY SELECT AN INVESTMENT OPTION FROM THE PERMITTED
INVESTMENT OPTIONS LISTED IN THIS ARTICLE. ENROLLEES MAY CHANGE THEIR
INVESTMENT OPTION AT ANY TIME, SUBJECT TO RULES PROMULGATED BY THE
BOARD. IN THE EVENT THAT AN ENROLLEE FAILS TO SELECT AN INVESTMENT
OPTION, THAT ENROLLEE SHALL BE PLACED IN THE INVESTMENT OPTION SELECTED
BY THE BOARD AS THE DEFAULT UNDER THIS ARTICLE. IF THE BOARD HAS NOT
SELECTED A DEFAULT INVESTMENT OPTION UNDER THIS ARTICLE, THEN AN ENROL-
LEE WHO FAILS TO SELECT AN INVESTMENT OPTION SHALL BE PLACED IN THE
LIFE-CYCLE FUND INVESTMENT OPTION.
5. FOLLOWING INITIAL IMPLEMENTATION OF THE PROGRAM PURSUANT TO THIS
SECTION, AT LEAST ONCE EVERY YEAR, PARTICIPATING EMPLOYERS SHALL DESIG-
NATE AN OPEN ENROLLMENT PERIOD DURING WHICH EMPLOYEES WHO PREVIOUSLY
OPTED OUT OF THE PROGRAM MAY ENROLL IN THE PROGRAM.
6. AN EMPLOYEE WHO OPTS OUT OF THE PROGRAM WHO SUBSEQUENTLY WANTS TO
PARTICIPATE THROUGH THE PARTICIPATING EMPLOYER'S PAYROLL DEPOSIT RETIRE-
MENT SAVINGS ARRANGEMENT MAY ONLY ENROLL DURING THE PARTICIPATING
EMPLOYER'S DESIGNATED OPEN ENROLLMENT PERIOD OR IF PERMITTED BY THE
PARTICIPATING EMPLOYER AT AN EARLIER TIME.
7. EMPLOYERS SHALL RETAIN THE OPTION AT ALL TIMES TO SET UP ANY TYPE
OF EMPLOYER-SPONSORED RETIREMENT PLAN INSTEAD OF HAVING A PAYROLL DEPOS-
IT RETIREMENT SAVINGS ARRANGEMENT TO ALLOW EMPLOYEE PARTICIPATION IN THE
PROGRAM.
8. AN ENROLLEE MAY TERMINATE HIS OR HER PARTICIPATION IN THE PROGRAM
AT ANY TIME IN A MANNER PRESCRIBED BY THE BOARD.
9. (A) THE STATE COMPTROLLER SHALL ESTABLISH A WEBSITE REGARDING THE
SECURE CHOICE SAVINGS PROGRAM WHICH SHALL BE ACCESSIBLE THROUGH THE
STATE COMPTROLLER'S OWN WEBSITE.
(B) THE BOARD SHALL, IN CONJUNCTION WITH THE OFFICE OF THE STATE COMP-
TROLLER, ESTABLISH AND MAINTAIN A SECURE WEBSITE WHEREIN ENROLLEES MAY
LOG IN AND ACQUIRE INFORMATION REGARDING CONTRIBUTIONS AND INVESTMENT
INCOME ALLOCATED TO, WITHDRAWALS FROM, AND BALANCES IN THEIR PROGRAM
ACCOUNTS FOR THE REPORTING PERIOD. SUCH WEBSITE MUST ALSO INCLUDE INFOR-
MATION FOR THE ENROLLEES REGARDING OTHER OPTIONS AVAILABLE TO THE
EMPLOYEE AND HOW THEY CAN TRANSFER THEIR ACCOUNTS TO OTHER PROGRAMS
SHOULD THEY WISH TO DO SO. SUCH WEBSITE MAY INCLUDE ANY OTHER INFORMA-
TION REGARDING THE PROGRAM AS THE BOARD MAY DETERMINE.
S 581. PAYMENTS. EMPLOYEE CONTRIBUTIONS DEDUCTED BY THE PARTICIPATING
EMPLOYER THROUGH PAYROLL DEDUCTION SHALL BE PAID BY THE PARTICIPATING
EMPLOYER TO THE FUND USING ONE OR MORE PAYROLL DEPOSIT RETIREMENT
SAVINGS ARRANGEMENTS ESTABLISHED BY THE BOARD UNDER THIS ARTICLE,
EITHER:
1. ON OR BEFORE THE LAST DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH
THE COMPENSATION OTHERWISE WOULD HAVE BEEN PAYABLE TO THE EMPLOYEE IN
CASH; OR
2. BEFORE SUCH LATER DEADLINE PRESCRIBED BY THE BOARD FOR MAKING SUCH
PAYMENTS, BUT NOT LATER THAN THE DUE DATE FOR THE DEPOSIT OF TAX
REQUIRED TO BE DEDUCTED AND WITHHELD RELATING TO COLLECTION OF INCOME
TAX AT SOURCE ON WAGES OR FOR THE DEPOSIT OF TAX REQUIRED TO BE PAID
S. 6045--D 9
UNDER THE UNEMPLOYMENT INSURANCE SYSTEM FOR THE PAYROLL PERIOD TO WHICH
SUCH PAYMENTS RELATE.
S 582. DUTY AND LIABILITY OF THE STATE. 1. THE STATE SHALL HAVE NO
DUTY OR LIABILITY TO ANY PARTY FOR THE PAYMENT OF ANY RETIREMENT SAVINGS
BENEFITS ACCRUED BY ANY ENROLLEE UNDER THE PROGRAM. ANY FINANCIAL
LIABILITY FOR THE PAYMENT OF RETIREMENT SAVINGS BENEFITS IN EXCESS OF
FUNDS AVAILABLE UNDER THE PROGRAM SHALL BE BORNE SOLELY BY THE ENTITIES
WITH WHOM THE BOARD CONTRACTS TO PROVIDE INSURANCE TO PROTECT THE VALUE
OF THE PROGRAM.
2. NO STATE BOARD, COMMISSION, OR AGENCY, OR ANY OFFICER, EMPLOYEE, OR
MEMBER THEREOF IS LIABLE FOR ANY LOSS OR DEFICIENCY RESULTING FROM
PARTICULAR INVESTMENTS SELECTED UNDER THIS ARTICLE, EXCEPT FOR ANY
LIABILITY THAT ARISES OUT OF A BREACH OF FIDUCIARY DUTY.
S 583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS. 1. PARTICIPAT-
ING EMPLOYERS SHALL NOT HAVE ANY LIABILITY FOR AN EMPLOYEE'S DECISION TO
PARTICIPATE IN, OR OPT OUT OF, THE PROGRAM OR FOR THE INVESTMENT DECI-
SIONS OF THE BOARD OR OF ANY ENROLLEE.
2. A PARTICIPATING EMPLOYER SHALL NOT BE A FIDUCIARY, OR CONSIDERED TO
BE A FIDUCIARY, OVER THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT
BEAR RESPONSIBILITY FOR THE ADMINISTRATION, INVESTMENT, OR INVESTMENT
PERFORMANCE OF THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT BE LIABLE
WITH REGARD TO INVESTMENT RETURNS, PROGRAM DESIGN, AND BENEFITS PAID TO
PROGRAM PARTICIPANTS.
S 584. AUDIT AND REPORTS. 1. THE BOARD SHALL ANNUALLY SUBMIT:
(A) AN AUDITED FINANCIAL REPORT, PREPARED IN ACCORDANCE WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES, ON THE OPERATIONS OF THE PROGRAM DURING
EACH CALENDAR YEAR BY JULY FIRST OF THE FOLLOWING YEAR TO THE GOVERNOR,
THE COMPTROLLER, THE SUPERINTENDENT OF FINANCIAL SERVICES AND THE SENATE
AND ASSEMBLY; AND
(B) A REPORT PREPARED BY THE BOARD, WHICH SHALL INCLUDE, BUT IS NOT
LIMITED TO, A SUMMARY OF THE BENEFITS PROVIDED BY THE PROGRAM, INCLUDING
THE NUMBER OF ENROLLEES IN THE PROGRAM, THE PERCENTAGE AND AMOUNTS OF
INVESTMENT OPTIONS AND RATES OF RETURN, AND SUCH OTHER INFORMATION THAT
IS RELEVANT TO MAKE A FULL, FAIR, AND EFFECTIVE DISCLOSURE OF THE OPER-
ATIONS OF THE PROGRAM AND THE FUND. THE ANNUAL AUDIT SHALL BE MADE BY AN
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT AND SHALL INCLUDE, BUT IS NOT
LIMITED TO, DIRECT AND INDIRECT COSTS ATTRIBUTABLE TO THE USE OF OUTSIDE
CONSULTANTS, INDEPENDENT CONTRACTORS, AND ANY OTHER PERSONS WHO ARE NOT
STATE EMPLOYEES FOR THE ADMINISTRATION OF THE PROGRAM.
2. IN ADDITION TO ANY OTHER STATEMENTS OR REPORTS REQUIRED BY LAW, THE
BOARD SHALL PROVIDE PERIODIC REPORTS AT LEAST ANNUALLY TO ENROLLEES,
REPORTING CONTRIBUTIONS AND INVESTMENT INCOME ALLOCATED TO, WITHDRAWALS
FROM, AND BALANCES IN THEIR PROGRAM ACCOUNTS FOR THE REPORTING PERIOD.
SUCH REPORTS MAY INCLUDE ANY OTHER INFORMATION REGARDING THE PROGRAM AS
THE BOARD MAY DETERMINE.
S 585. PENALTIES. 1. AN EMPLOYER WHO FAILS WITHOUT REASONABLE CAUSE TO
ENROLL AN EMPLOYEE IN THE PROGRAM WITHIN THE TIME PRESCRIBED UNDER THIS
ARTICLE SHALL BE SUBJECT TO A PENALTY EQUAL TO:
(A) TWO HUNDRED FIFTY DOLLARS FOR EACH EMPLOYEE FOR EACH CALENDAR YEAR
OR PORTION OF A CALENDAR YEAR DURING WHICH THE EMPLOYEE NEITHER WAS
ENROLLED IN THE PROGRAM NOR HAD ELECTED OUT OF PARTICIPATION IN THE
PROGRAM; OR
(B) FOR EACH CALENDAR YEAR BEGINNING AFTER THE DATE A PENALTY HAS BEEN
ASSESSED WITH RESPECT TO AN EMPLOYEE, FIVE HUNDRED DOLLARS FOR ANY
PORTION OF THAT CALENDAR YEAR DURING WHICH SUCH EMPLOYEE CONTINUES TO BE
UNENROLLED WITHOUT ELECTING OUT OF PARTICIPATION IN THE PROGRAM.
S. 6045--D 10
2. AFTER DETERMINING THAT AN EMPLOYER IS SUBJECT TO PENALTY UNDER THIS
SECTION FOR A CALENDAR YEAR, THE COMPTROLLER SHALL ISSUE A NOTICE OF
PROPOSED ASSESSMENT TO SUCH EMPLOYER, STATING THE NUMBER OF EMPLOYEES
FOR WHICH THE PENALTY IS PROPOSED UNDER THIS SECTION AND THE NUMBER OF
EMPLOYEES FOR WHICH THE PENALTY IS PROPOSED UNDER THIS SECTION FOR SUCH
CALENDAR YEAR, AND THE TOTAL AMOUNT OF PENALTIES PROPOSED. UPON THE
EXPIRATION OF NINETY DAYS AFTER THE DATE ON WHICH A NOTICE OF PROPOSED
ASSESSMENT WAS ISSUED, THE PENALTIES SPECIFIED THEREIN SHALL BE DEEMED
ASSESSED, UNLESS THE EMPLOYER HAD FILED A PROTEST WITH THE COMPTROLLER
UNDER THIS SECTION. IF, WITHIN NINETY DAYS AFTER THE DATE ON WHICH IT
WAS ISSUED, A PROTEST OF A NOTICE OF PROPOSED ASSESSMENT IS FILED UNDER
THIS SECTION, THE PENALTIES SPECIFIED THEREIN SHALL BE DEEMED ASSESSED
UPON THE DATE WHEN THE DECISION OF THE COMPTROLLER WITH RESPECT TO THE
PROTEST BECOMES FINAL.
3. A WRITTEN PROTEST AGAINST THE PROPOSED ASSESSMENT SHALL BE FILED
WITH THE COMPTROLLER IN SUCH FORM AS THE COMPTROLLER MAY BY RULE
PRESCRIBE, SETTING FORTH THE GROUNDS ON WHICH SUCH PROTEST IS BASED. IF
SUCH A PROTEST IS FILED WITHIN NINETY DAYS AFTER THE DATE THE NOTICE OF
PROPOSED ASSESSMENT IS ISSUED, THE COMPTROLLER SHALL RECONSIDER THE
PROPOSED ASSESSMENT AND SHALL GRANT THE EMPLOYER A HEARING. AS SOON AS
PRACTICABLE AFTER SUCH RECONSIDERATION AND HEARING, THE COMPTROLLER
SHALL ISSUE A NOTICE OF DECISION TO THE EMPLOYER, SETTING FORTH THE
COMPTROLLER'S FINDINGS OF FACT AND THE BASIS OF DECISION. THE DECISION
OF THE COMPTROLLER SHALL BECOME FINAL:
(A) IF NO ACTION FOR REVIEW OF THE DECISION IS COMMENCED, ON THE DATE
ON WHICH THE TIME FOR COMMENCEMENT OF SUCH REVIEW HAS EXPIRED; OR
(B) IF A TIMELY ACTION FOR REVIEW OF THE DECISION IS COMMENCED, ON THE
DATE ALL PROCEEDINGS IN COURT FOR THE REVIEW OF SUCH ASSESSMENT HAVE
TERMINATED OR THE TIME FOR THE TAKING THEREOF HAS EXPIRED WITHOUT SUCH
PROCEEDINGS BEING INSTITUTED.
4. AS SOON AS PRACTICABLE AFTER THE PENALTIES SPECIFIED IN A NOTICE OF
PROPOSED ASSESSMENT ARE DEEMED ASSESSED, THE COMPTROLLER SHALL GIVE
NOTICE TO THE EMPLOYER LIABLE FOR ANY UNPAID PORTION OF SUCH ASSESSMENT,
STATING THE AMOUNT DUE AND DEMANDING PAYMENT. IF AN EMPLOYER NEGLECTS OR
REFUSES TO PAY THE ENTIRE LIABILITY SHOWN ON THE NOTICE AND DEMAND WITH-
IN TEN DAYS AFTER THE NOTICE AND DEMAND IS ISSUED, THE UNPAID AMOUNT OF
THE LIABILITY SHALL BE A LIEN IN FAVOR OF THE STATE UPON ALL PROPERTY
AND RIGHTS TO PROPERTY, WHETHER REAL OR PERSONAL, BELONGING TO THE
EMPLOYER.
5. AN EMPLOYER WHO HAS OVERPAID A PENALTY ASSESSED UNDER THIS SECTION
MAY FILE A CLAIM FOR REFUND WITH THE COMPTROLLER. A CLAIM SHALL BE IN
WRITING IN SUCH FORM AS THE COMPTROLLER MAY BY RULE PRESCRIBE AND SHALL
STATE THE SPECIFIC GROUNDS UPON WHICH IT IS FOUNDED. AS SOON AS PRACTI-
CABLE AFTER A CLAIM FOR REFUND IS FILED, THE COMPTROLLER SHALL EXAMINE
IT AND EITHER ISSUE A REFUND OR ISSUE A NOTICE OF DENIAL. IF SUCH A
PROTEST IS FILED, THE COMPTROLLER SHALL RECONSIDER THE DENIAL AND GRANT
THE EMPLOYER A HEARING. AS SOON AS PRACTICABLE AFTER SUCH RECONSIDER-
ATION AND HEARING, THE COMPTROLLER SHALL ISSUE A NOTICE OF DECISION TO
THE EMPLOYER. THE NOTICE SHALL SET FORTH BRIEFLY THE COMPTROLLER'S FIND-
INGS OF FACT AND THE BASIS OF DECISION IN EACH CASE DECIDED IN WHOLE OR
IN PART ADVERSELY TO THE EMPLOYER. A DENIAL OF A CLAIM FOR REFUND
BECOMES FINAL NINETY DAYS AFTER THE DATE OF ISSUANCE OF THE NOTICE OF
THE DENIAL EXCEPT FOR SUCH AMOUNTS DENIED AS TO WHICH THE EMPLOYER HAS
FILED A PROTEST WITH THE COMPTROLLER. IF A PROTEST HAS BEEN TIMELY
FILED, THE DECISION OF THE COMPTROLLER SHALL BECOME FINAL:
S. 6045--D 11
(A) IF NO ACTION FOR REVIEW OF THE DECISION IS COMMENCED ON THE DATE
ON WHICH THE TIME FOR COMMENCEMENT OF SUCH REVIEW HAS EXPIRED; OR
(B) IF A TIMELY ACTION FOR REVIEW OF THE DECISION IS COMMENCED ON THE
DATE ALL PROCEEDINGS IN COURT FOR THE REVIEW OF SUCH ASSESSMENT HAVE
TERMINATED OR THE TIME FOR THE TAKING THEREOF HAS EXPIRED WITHOUT SUCH
PROCEEDINGS BEING INSTITUTED.
6. NO NOTICE OF PROPOSED ASSESSMENT MAY BE ISSUED WITH RESPECT TO A
CALENDAR YEAR AFTER JUNE THIRTIETH OF THE FOURTH SUBSEQUENT CALENDAR
YEAR. NO CLAIM FOR REFUND MAY BE FILED MORE THAN ONE YEAR AFTER THE DATE
OF PAYMENT OF THE AMOUNT TO BE REFUNDED.
7. WHENEVER NOTICE IS REQUIRED BY THIS SECTION, IT MAY BE GIVEN OR
ISSUED BY MAILING IT BY FIRST-CLASS MAIL ADDRESSED TO THE PERSON
CONCERNED AT HIS OR HER LAST KNOWN ADDRESS.
8. ALL BOOKS AND RECORDS AND OTHER PAPERS AND DOCUMENTS RELEVANT TO
THE DETERMINATION OF ANY PENALTY DUE UNDER THIS SECTION SHALL, AT ALL
TIMES DURING BUSINESS HOURS OF THE DAY, BE SUBJECT TO INSPECTION BY THE
COMPTROLLER OR ITS DULY AUTHORIZED AGENTS AND EMPLOYEES.
9. THE COMPTROLLER MAY REQUIRE EMPLOYERS TO REPORT INFORMATION RELE-
VANT TO THEIR COMPLIANCE WITH THIS ARTICLE ON TAX RETURNS AND FAILURE TO
PROVIDE THE REQUESTED INFORMATION ON A RETURN SHALL CAUSE SUCH RETURN TO
BE TREATED AS UNPROCESSABLE.
10. FOR PURPOSES OF ANY PROVISION OF STATE LAW ALLOWING THE COMP-
TROLLER OR ANY OTHER AGENCY OF THIS STATE TO OFFSET AN AMOUNT OWED TO A
TAXPAYER AGAINST A TAX LIABILITY OF THAT TAXPAYER OR ALLOWING THE COMP-
TROLLER TO OFFSET AN OVERPAYMENT OF TAX AGAINST ANY LIABILITY OWED TO
THE STATE, A PENALTY ASSESSED UNDER THIS SECTION SHALL BE DEEMED TO BE A
TAX LIABILITY OF THE EMPLOYER AND ANY REFUND DUE TO AN EMPLOYER SHALL BE
DEEMED TO BE AN OVERPAYMENT OF TAX OF THE EMPLOYER.
11. EXCEPT AS PROVIDED IN THIS SUBDIVISION, ALL INFORMATION RECEIVED
BY THE COMPTROLLER FROM RETURNS FILED BY AN EMPLOYER OR FROM ANY INVES-
TIGATION CONDUCTED UNDER THE PROVISIONS OF THIS ARTICLE SHALL BE CONFI-
DENTIAL, EXCEPT FOR OFFICIAL PURPOSES WITHIN THE OFFICE OF THE COMP-
TROLLER OR PURSUANT TO OFFICIAL PROCEDURES FOR COLLECTION OF PENALTIES
ASSESSED UNDER THIS ARTICLE. NOTHING CONTAINED IN THIS SUBDIVISION
SHALL PREVENT THE DIRECTOR FROM PUBLISHING OR MAKING AVAILABLE TO THE
PUBLIC REASONABLE STATISTICS CONCERNING THE OPERATION OF THIS ARTICLE
WHEREIN THE CONTENTS OF RETURNS ARE GROUPED INTO AGGREGATES IN SUCH A
WAY THAT THE SPECIFIC INFORMATION OF ANY EMPLOYER SHALL NOT BE
DISCLOSED. NOTHING CONTAINED IN THIS SUBDIVISION SHALL PREVENT THE
DIRECTOR FROM DIVULGING INFORMATION TO AN AUTHORIZED REPRESENTATIVE OF
THE EMPLOYER OR TO ANY PERSON PURSUANT TO A REQUEST OR AUTHORIZATION
MADE BY THE EMPLOYER OR BY AN AUTHORIZED REPRESENTATIVE OF THE EMPLOYER.
12. CIVIL PENALTIES AND FEES COLLECTED UNDER THIS ARTICLE SHALL BE
DEPOSITED WITH THE COMPTROLLER FOR PURPOSES DEDICATED TO THE ADMINIS-
TRATION OF THE PROGRAM.
13. THE COMPTROLLER MAY CHARGE THE BOARD INCURRED EXPENSES FOR ITS
COSTS IN PERFORMING ITS DUTIES UNDER THIS SECTION TO THE EXTENT THAT
SUCH COSTS HAVE NOT BEEN RECOVERED FROM PENALTIES IMPOSED UNDER THIS
SECTION.
14. THIS SECTION SHALL BECOME OPERATIVE NINE MONTHS AFTER THE BOARD
NOTIFIES THE DIRECTOR THAT THE PROGRAM HAS BEEN IMPLEMENTED. UPON
RECEIPT OF SUCH NOTIFICATION FROM THE BOARD, THE COMPTROLLER SHALL IMME-
DIATELY POST ON ITS INTERNET WEBSITE A NOTICE STATING THAT THIS SECTION
IS OPERATIVE AND THE DATE THAT IT IS FIRST OPERATIVE. THIS NOTICE SHALL
INCLUDE A STATEMENT THAT RATHER THAN ENROLLING EMPLOYEES IN THE PROGRAM
UNDER THIS ARTICLE, EMPLOYERS MAY SPONSOR AN ALTERNATIVE ARRANGEMENT.
S. 6045--D 12
S 586. DELAYED IMPLEMENTATION. IF THE BOARD DOES NOT OBTAIN ADEQUATE
FUNDS TO IMPLEMENT THE PROGRAM WITHIN THE TIME FRAME SET FORTH UNDER
THIS ARTICLE AND IS SUBJECT TO APPROPRIATION, THE BOARD MAY DELAY THE
IMPLEMENTATION OF THE PROGRAM.
S 3. The state finance law is amended by adding two new sections 99-aa
and 99-bb to read as follows:
S 99-AA. NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND. 1. THERE
IS HEREBY ESTABLISHED WITHIN THE JOINT CUSTODY OF THE COMMISSIONER OF
TAXATION AND FINANCE AND THE STATE COMPTROLLER IN CONSULTATION WITH THE
NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD, A NEW FUND TO BE
KNOWN AS THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND.
2. THE FUND SHALL INCLUDE THE INDIVIDUAL RETIREMENT ACCOUNTS OF ENROL-
LEES, WHICH SHALL BE ACCOUNTED FOR AS INDIVIDUAL ACCOUNTS.
3. MONEYS IN THE FUND SHALL CONSIST OF MONEYS RECEIVED FROM ENROLLEES
AND PARTICIPATING EMPLOYERS PURSUANT TO AUTOMATIC PAYROLL DEDUCTIONS AND
CONTRIBUTIONS TO SAVINGS MADE UNDER THE NEW YORK STATE SECURE CHOICE
SAVINGS PROGRAM PURSUANT TO ARTICLE FOURTEEN-C OF THE RETIREMENT AND
SOCIAL SECURITY LAW.
4. THE FUND SHALL BE OPERATED IN A MANNER DETERMINED BY THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM BOARD, PROVIDED THAT THE FUND IS
OPERATED SO THAT THE ACCOUNTS OF ENROLLEES ESTABLISHED UNDER THE PROGRAM
MEET THE REQUIREMENTS FOR IRAS UNDER THE INTERNAL REVENUE CODE.
5. THE AMOUNTS DEPOSITED IN THE FUND SHALL NOT CONSTITUTE PROPERTY OF
THE STATE AND THE FUND SHALL NOT BE CONSTRUED TO BE A DEPARTMENT, INSTI-
TUTION, OR AGENCY OF THE STATE. AMOUNTS ON DEPOSIT IN THE FUND SHALL NOT
BE COMMINGLED WITH STATE FUNDS AND THE STATE SHALL HAVE NO CLAIM TO OR
AGAINST, OR INTEREST IN, SUCH FUNDS.
S 99-BB. NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND. 1. THERE
IS HEREBY ESTABLISHED WITHIN THE JOINT CUSTODY OF THE COMMISSIONER OF
TAXATION AND FINANCE AND THE STATE COMPTROLLER IN CONSULTATION WITH THE
NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD, A NEW FUND TO BE
KNOWN AS THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND.
2. THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD SHALL USE
MONEYS IN THE ADMINISTRATIVE FUND TO PAY FOR ADMINISTRATIVE EXPENSES IT
INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER THE NEW YORK STATE SECURE
CHOICE SAVINGS PROGRAM PURSUANT TO ARTICLE FOURTEEN-C OF THE RETIREMENT
AND SOCIAL SECURITY LAW.
3. THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD SHALL USE
MONEYS IN THE ADMINISTRATIVE FUND TO COVER START-UP ADMINISTRATIVE
EXPENSES IT INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER ARTICLE FOUR-
TEEN-C OF THE RETIREMENT AND SOCIAL SECURITY LAW.
4. THE ADMINISTRATIVE FUND MAY RECEIVE ANY GRANTS OR OTHER MONEYS
DESIGNATED FOR ADMINISTRATIVE PURPOSES FROM THE STATE, OR ANY UNIT OF
FEDERAL OR LOCAL GOVERNMENT, OR ANY OTHER PERSON, FIRM, PARTNERSHIP, OR
CORPORATION. ANY INTEREST EARNINGS THAT ARE ATTRIBUTABLE TO MONEYS IN
THE ADMINISTRATIVE FUND MUST BE DEPOSITED INTO THE ADMINISTRATIVE FUND.
S 4. This act shall take effect immediately.
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