BILL NUMBER: S7885

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the general business law, in relation to expanding
participation in the New York state secure choice savings program

 
PURPOSE:

Expands participation in the New York state secure choice savings
program.

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision 4 of section 1300 of the general business
law, as amended by chapter 452 of the laws of 2021, by reducing the
number of employees threshold requirement from ten to five within the
definition of "employer."

Section 2 states the effective date.

              

 
JUSTIFICATION:

In 2017, Oregon took a pioneering step by introducing a retirement plan
for workers without access through their employers, setting a precedent
for other states. Subsequently, California, Colorado, Connecticut, Illi-
nois, Maryland, Massachusetts, Virginia, and Washington followed suit by
implementing similar programs. One year later, in the FY 2018 budget,
the New York State Secure Choice Savings Program (SCSP) was established
specifically for private-sector employees without access to a workplace
retirement plan.

The Governor then signed bill S5395A into law, mandating that all
private-sector employers with a minimum of 10 employees be automatically
enrolled in the SCSP, while still providing the option for employees to
opt out. This legislation aims to lower the threshold from 10 to 5,
ensuring that individuals working for smaller employers that meet all
other established criteria have the opportunity for automatic enrollment
in the SCSP.

Among the previously mentioned states, California, Connecticut, and
Illinois offer their retirement programs to employers with 5 or more
workers. In California alone, the potential coverage exceeds 7 million
individuals. New York State must join these efforts to ensure coverage
for as many New Yorkers as possible. As of May 2023, the New York State
Department of Labor (DOL) reports a total of 8,249,400 private sector
jobs in the state. Given these figures, it is opportune for New York
State to take a proactive stance and offer similar retirement opportu-
nities to employers with 5 or more workers within the state.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS:

TBD

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law.