New York’s Secure Choice Savings Program: A Mandatory Retirement Savings Requirement Now in Effect
5.27.2026
The New York Secure Choice Savings Program, now taking effect, requires employers who do not offer a qualified retirement plan to enroll their employees in the state’s sponsored retirement savings program.[1] Employers with 10 or more employees must register through the program’s online portal using their federal employer identification number and a unique access code provided by the program administrator. Employers must also provide notice to their employees about the program and their options regarding participation, contribution amounts, and their opt-out rights. Employees are enrolled automatically but may opt out or adjust their contributions at any time.
The deadlines to register are as follows:
- Employers with 30 or more employees: March 18, 2026.
- Employers with 15 to 29 employees: May 15, 2026.
- Employers with 10 to 14 employees: July 15, 2026.
This article provides a brief background and overview of the program, the obligations it imposes on employers, and possible challenges.
Background
The New York Secure Choice Savings Program was established to confront a growing retirement savings crisis affecting millions of New York workers. In 2022, nearly half of New Yorkers over the age of 70 reported no retirement income at all.[2] More than 12% of adults over age 70 did not receive Social Security income in 2022. For those who did receive Social Security, benefits have barely kept pace with inflation and fall well short of New York’s housing costs.[3] Furthermore, Social Security funds are projected to be depleted by 2033, at which point the program would only be able to pay approximately 79% of scheduled benefits.[4] All of this highlights the urgent need for supplemental retirement savings.
A 2016 report commissioned by the New York City comptroller found that 58% of private sector workers in New York City had no access to employer-based retirement plans.[5] Low-wage workers, Hispanic and Asian workers, and those employed by firms with 10 or fewer employees were the most likely to lack access. The report found that small employers are reluctant to establish retirement plans due to costs, administrative burden and reluctance to assume fiduciary responsibility.[6]
In response, the Legislature enacted the Secure Choice Savings Program to provide a retirement savings vehicle for workers without access to one through their employer. The program was initially enacted as a voluntary program, giving employers the option to enroll employees in the program.[7] In 2021, the Legislature made the program mandatory, requiring certain employers to automatically enroll their employees into the program.[8] The program is codified in Article 43 of the New York General Business Law.
Coverage, Enrollment and Employer Obligations
The Secure Choice Savings Program applies to any employer, including for-profit and nonprofit employers that meet the following criteria:
- Employs 10 or more employees in the state.
- Has been in operation for at least two years.
- Does not currently offer a qualified retirement plan such as a 401(k), 403(b), SEP IRA or SIMPLE IRA.[9]
Employers that already have a qualified plan are exempt from participation in the program, but they must still certify their exemption through the program’s online portal at www.newyorksecurechoice.com.[10]
Registration deadlines are staggered by employer size. Employers with 30 or more employees were required to register by March 18. Employers with 15 to 29 employees were required to register by May 15. Employers with 10 to 14 employees must register by July 15. Eligible employers receive an access code from the program administrator by email or letter, which together with their employee identification number is required to complete registration.[11]
The program is structured as a state-administered Roth Individual Retirement Account with automatic enrollment. The default contribution rate is 3% of gross wages, though employees may change their contribution rate or select a different investment option at any time.[12] Payroll deductions do not begin until 30 days after enrollment, giving employees time to opt out or make changes. Employers must provide informational materials to employees at least one month before facilitating the program and to new employees at the time of hiring.[13]
Employees who have not opted out or made a change to their contribution rate are automatically enrolled at the 3% default rate. Employers must submit employee information to the program administrator and remit contributions as soon as practicable, but no later than the last day of the month following the month in which wages were paid.[14] Employers using professional employer organizations or third-party payroll providers should ensure that their vendors remit the contributions to the program.
The program is administered day-to-day by Vestwell, the third-party administrator selected by the Secure Choice Savings Program Board. Fees are charged directly to participant accounts: an annual per-account fee of $28 and an annualized asset-based fee ranging from 0.22% to 0.31% depending on the investment option selected.[15] There is no cost to employers.
Accounts are individually owned Roth IRAs governed by Internal Revenue Code section 408A and belong to the employee.[16] These accounts travel with the employee, including if they change or cease employment. The employer’s role under the rule is deliberately limited. Under New York General Business Law, the employer is explicitly not a fiduciary and bears no responsibility for the administration, investment or investment performance of the program.[17]
Potential Challenges and Limitations
While the Secure Choice Savings Program is a meaningful first step in addressing the retirement savings crisis facing many New York workers, it has limitations. Because the program is structured as a Roth IRA, annual contributions are capped at $7,000 per year, or $8,000 for those aged 50 and older.[18] This is significantly lower than the $23,500 annual limit available to employees under a traditional qualified plan such as a 401(k) plan.
Additionally, while the statute authorizes the Secure Choice Savings Program Board to impose penalties for non-compliance, the specific penalty structure has not yet been finalized or publicly announced. By comparison, California has implemented graduated fines, starting at $250 per employee, increasing to $500 per employee if non-compliance continues beyond 90 days.[19]
Furthermore, it remains to be seen whether this law will be challenged as preempted by the Employee Retirement Income Security Act. In California, an employer challenged CalSavers, an analogous state-mandated auto-enrollment IRA program, arguing it was preempted by ERISA.[20] CalSavers, as does the New York Secure Choice Savings Program, relies on a Department of Labor safe harbor that excludes certain plans from ERISA. Under the safe harbor, a payroll deduction IRA is not considered an ERISA plan if: (1) the employer makes no contributions; (2) participation is completely voluntary; (3) the employer’s role is limited to collecting and remitting deductions without endorsement; and (4) the employer receives no more than reasonable compensation for administrative services.[21]
The employer in California argued that because enrollment was automatic rather than voluntary — that is, employees were automatically enrolled unless they opted out — the program was not “completely voluntary” and therefore was not covered under the safe harbor, making CalSavers an ERISA plan subject to preemption. The Ninth Circuit rejected that argument, affirming the district court’s dismissal of the challenge. It is worth noting that the DOL under the first Trump administration filed an amicus curiae in the Ninth Circuit in support of the employer that CalSavers was preempted by ERISA, which was later withdrawn by the Biden administration.[22] It remains to be seen whether similar challenges will be brought in New York and how the Second Circuit may rule on such a challenge, as well as whether the current administration will take a position on the matter.
Despite these limitations, research consistently demonstrates that automatic payroll deduction is the most effective mechanism for building retirement savings among workers who would not otherwise save on their own.[23] The New York Secure Choice Savings Program, notwithstanding its limitations, represents a meaningful step toward ensuring that millions of private-sector workers in New York have access to a basic retirement savings vehicle.
The New York Secure Choice Savings Program requires employers to enroll their employees in the program. While the deadline to enroll has already passed, employers who have not yet enrolled should do so immediately.
Michael Kohane is an associate at Pitta LLP, where he focuses on ERISA retirement plans including health and welfare plans. He is admitted to practice in New York.
Endnotes
[1] N.Y. Gen. Bus. Law, art. 43, § 1300(4).
[2] Ctr. for an Urban Future, The Emerging Financial Security Crisis Facing Older Adults Across New York State (2025), https://nycfuture.org/research/the-emerging-financial-security-crisis-facing-older-adults-across-new-york.
[3] Id.
[4] U.S. Soc. Sec. Admin., The 2025 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds (2025), https://www.ssa.gov/OACT/TRSUM/index.html.
[5] New York City Retirement Security Study Group, An Analysis of Options to Increase Retirement Security for New York City Private Sector Workers. New York City Comptroller’s Office (Oct. 2016), https://comptroller.nyc.gov/reports/an-analysis-of-options-to-increase-retirement-security-for-new-york-city-private-sector-workers/.
[6] Id. at 8.
[7] N.Y. Laws ch. 55, pt. X (2018).
[8] S. 5395A, 2021–2022 Reg. Sess. (N.Y. 2021); A. 3213A, 2021–2022 Reg. Sess. (N.Y. 2021).
[9] N.Y. Gen. Bus. Law § 1300(4).
[10] Id.; see also N.Y. Secure Choice Sav. Program, Program Details for Employers, https://newyorksecurechoice.com/employers/program-details.
[11] Id.
[12] N.Y. Secure Choice Sav. Program, Policies and Procedures 6 (Oct. 2025), https://securechoice.ny.gov/pdf/10-07-2025/policies-procedures.pdf.
[13] N.Y. Gen. Bus. Law, art. 43, § 1309(5).
[14] N.Y. Secure Choice Sav. Program, Policies and Procedures 5; N.Y. Gen. Bus. Law art. 43, § 1311.
[15] N.Y. Secure Choice Sav. Program, Program Description 13-15.
[16] I.R.C. § 408A; N.Y. Secure Choice Sav. Program, Program Description, 5 (July 2025), https://marcom.vestwell.com/program-description/en/newyorksecurechoice.pdf.
[17] N.Y. Gen. Bus. Law, art. 43, § 1313.
[18] I.R.C. § 219(b)(1)(A); Rev. Proc. 2025-28.
[19] Cal. Gov’t Code § 100033(b)(2).
[20] Howard Jarvis Taxpayers Ass’n v. Cal. Secure Choice Ret. Sav. Program, 997 F.3d 848 (9th Cir. 2021), cert. denied, 142 S. Ct. 1490 (2022).
[21] 29 C.F.R. § 2510.3-2(d).
[22] Dep’t of Labor, Brief as Amicus Curiae, Howard Jarvis Taxpayers Ass’n v. Cal. Secure Choice Ret. Sav. Program, No. 20-15591 (9th Cir. June 2020); PLANADVISER, DOL Notifies Court It No Longer Supports Lawsuit Against CalSavers (Feb. 8, 2021), https://www.planadviser.com/dol-notifies-court-no-longer-supports-lawsuit-calsavers/.
[23] N.Y.C. Retirement Security Study Group, An Analysis of Options to Increase Retirement Security for New York City Private Sector Workers, Office of the NYC. Comptroller, 9 (Oct. 2016).
