Preparing for New York’s Secure Choice Retirement Savings Program, by Keith J. Gutstein, Esq. and Joseph Farneti, Esq., 9-17-2025

New York employers who currently do not offer a qualified workplace retirement plan should start preparing for the impending implementation of the Secure Choice Savings Program — a state-mandated retirement savings program that aims to expand access to retirement savings by requiring covered employers to facilitate the automatic enrollment of eligible employees, who can then contribute to Roth IRAs through payroll deduction.

The Secure Choice Savings Program was first created in the 2018–2019 state budget as a voluntary payroll deduction Roth IRA. In 2021, Governor Kathy Hochul signed A3213 into law, amending the program and making it mandatory for certain covered employers. Up until now, mandatory enrollment has not yet commenced, but is anticipated to begin in Fall 2025, according to a state overview.

Key Employer Obligations

Employers must comply if they meet the following criteria:

• Employed at least 10 employees in New York State at all times during the previous calendar year,
• Has been in business for at least two years; and,
• Has not offered a qualified retirement plan in the preceding two years.

Compliance Timeline

• Once the program is live, employers will have nine months to:
  • Register with the program,
  • Upload required employee data; and, 
  • Begin processing payroll deductions.

What the Secure Choice Plan Entails

• Automatic Enrollment: Eligible employees are enrolled automatically unless they opt out, typically within 30 days. Employee participation is voluntary.
• Default Contribution Rate: Set at 3% of wages, with flexibility for employees to choose a different amount or opt out.
• Investment Options: The standard 3% contribution rate and initial contributions are invested in a money market fund for 30 days, then existing savings and subsequent contributions invested in a target date fund, according to the program overview.

Employer Role & Liabilities

• Employers do not contribute to the accounts. Only employees will make contributions.
• Employers are not fiduciaries and bear limited responsibilities, such as:
  • Distribute state-provided informational materials to existing employees at least one month prior to enrollment and to new hires at the time of hiring.
  • Set up, process, and remit payroll deductions to the Secure Choice program (employers that have registered with New York Secure Choice may choose to work with their payroll provider to facilitate the program); and,
  • Maintain records of compliance.
• Employers are shielded from liability for an employee’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.

Impending Next Steps & Action Items
Covered employers should consider taking the following steps:

1.  Determine Applicability
Verify whether your organization meets the definition of a covered employer. 

2.  Prepare Payroll & HR Systems
Confirm payroll systems can handle Roth after tax deductions, opt outs, and remittance to the state program.  

3.  Exemption Planning (If Applicable)
If you already sponsor a qualified retirement plan, gather supporting documentation to certify your exemption once the program enrollment opens. More information on exempting your business is here. 

4.  Communicate Early with Employees 
Keep the lines of communication open with employees to help manage expectations, reduce confusion, and ensure employees are fully informed about their rights and options under the program. Employers can access more information here. 

Authors: Keith J. Gutstein, Chair of KD’s Labor and Employment Law Practice Group and Co-Managing Partner of the Long Island Office and Associate Joseph Farneti.