S T A T E O F N E W Y O R K
________________________________________________________________________
5395--A
2021-2022 Regular Sessions
I N S E N A T E
March 3, 2021
___________
Introduced by Sen. SAVINO -- read twice and ordered printed, and when
printed to be committed to the Committee on Consumer Protection --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the general business law, in relation to the secure
choice savings program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1301 of the general business law, as added by
section 2 of part X of chapter 55 of the laws of 2018, is amended to
read as follows:
§ 1301. Program established. There is hereby established a retirement
savings program in the form of [a] AN AUTOMATIC ENROLLMENT payroll
deduction IRA, known as the New York state secure choice savings
program. The general administration and responsibility for the proper
operation of the program shall be administered by the board for the
purpose of promoting greater retirement savings for private-sector
employees in a convenient, low-cost, and portable manner. The board may
delegate such authority and responsibility for the development and
implementation of the program to the department of taxation and finance
as the board deems proper.
§ 2. Subdivisions 7 and 9 of section 1304 of the general business law,
as added by section 2 of part X of chapter 55 of the laws of 2018, are
amended to read as follows:
7. Evaluate and establish or authorize the process for:
(a) an enrollee to contribute a portion of his or her wages to the
program via payroll deduction; and
(b) the [voluntary] enrollment of participating employers in the
program.
9. Evaluate and establish or authorize the process for enrollment
including the process by which an employee may OPT NOT TO participate in
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03146-03-1
S. 5395--A 2
the program, select a contribution level, select an investment option,
and terminate participation in the program.
§ 3. Subdivisions 3, 4 and 5 of section 1309 of the general business
law, as added by section 2 of part X of chapter 55 of the laws of 2018,
are amended to read as follows:
3. The employee informational materials 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 process for making contributions to the program;
(c) how to [cease participation in] OPT OUT OF the program;
(d) the process by which an employee can 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) the process for withdrawal of retirement savings;
(g) the process for selecting beneficiaries of their 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 available financial literacy
programs; [and]
(k) that the program fund is not guaranteed by the state; AND
(L) THAT THEY CAN OPT OUT AFTER THEY HAVE BEEN ENROLLED.
4. The employee informational materials shall also include a form for
an employee to note his or her decision [regarding] TO OPT OUT OF
participation in the program or [election] ELECT to participate with a
level of employee contributions other than three percent.
5. Participating employers shall supply the employee informational
materials to existing employees at least one month prior to the partic-
ipating employers' facilitation of access to the program. Participating
employers shall supply the employee informational materials to new
employees at the time of hiring AND NEW EMPLOYEES MAY OPT OUT OF PARTIC-
IPATION IN THE PROGRAM.
§ 4. Subdivision 1 of section 1313 of the general business law, as
added by section 2 of part X of chapter 55 of the laws of 2018, is
amended to read as follows:
1. Participating employers shall not have any liability for an employ-
ee's decision regarding whether to participate in, OR OPT OUT OF, the
program or for the investment decisions of the board or of any enrollee.
§ 5. Subdivisions 1, 2, 4 and 5 of section 1310 of the general busi-
ness law, as added by section 2 of part X of chapter 55 of the laws of
2018, are amended and a new subdivision 9 is added to read as follows:
1. [No employer shall be required to participate in or otherwise
implement the program.] (A) EACH PARTICIPATING EMPLOYER SHALL HAVE 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.
(B) 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
S. 5395--A 3
PAYROLL DEDUCTION RETIREMENT SAVINGS ARRANGEMENTS FOR SUCH EMPLOYEES AND
DEPOSIT, ON BEHALF OF SUCH EMPLOYEES, THESE FUNDS INTO THE PROGRAM.
2. Enrollees shall have the ability to select a contribution level
into the program. This level may be expressed as a percentage of wages
or as a dollar amount up to the deductible amount for the enrollee's
taxable year under section 219(b)(1)(A) of the Internal Revenue Code.
Enrollees 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
contributions 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. THE DEDUCTION OF CONTRIBUTIONS FROM AN EMPLOYEE'S WAGES
SHALL NOT BEGIN UNTIL THE THIRTIETH DAY AFTER SUCH EMPLOYEE HAS BEEN
ENROLLED IN THE PROGRAM.
4. Following initial implementation of the program pursuant to this
section, at least once every year, the program shall designate an open
enrollment period during which employees WHO PREVIOUSLY OPTED OUT OF THE
PROGRAM may enroll in the program.
5. An employee who [chooses not to participate in] OPTS OUT OF the
program and who subsequently wants to participate may only enroll during
the program's designated open enrollment period or if permitted by the
program at an earlier time.
9. 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 OFFERS 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
SHALL NOT TERMINATE SUCH PLAN FOR THE PURPOSES OF PARTICIPATING IN THE
PROGRAM.
§ 6. Subdivisions 4 and 8 of section 1300 of the general business law,
as added by section 2 of part X of chapter 55 of the laws of 2018, are
amended to read as follows:
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 TEN 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 qual-
ified 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.
8. "Participating employer" shall mean an employer that [elects to
facilitate] FACILITATES access to the program's payroll deduction IRA as
provided for by this article for its employees who are enrollees in the
program.
§ 7. This act shall take effect immediately.
