N.Y.
General Business Law Section 1310
Program implementation and enrollment
1.
(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 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.3.
Enrollees may select an investment option offered under the program. 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 or authorized by the board as the default under this article.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 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.6.
Employers shall retain the option at all times to set up any type of employer-sponsored retirement plan.7.
An enrollee may terminate his or her enrollment in the program at any time in a manner prescribed by the board.8.
(a) The board shall establish or authorize a website regarding the secure choice savings program.(b)
The board shall establish and maintain or authorize the establishment and maintenance of 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 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.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.
Source:
Section 1310 — Program implementation and enrollment, https://www.nysenate.gov/legislation/laws/GBS/1310 (updated Feb. 2, 2024; accessed Oct. 26, 2024).
