All Private Employers with 5+ NYC Employees
August 9, 2021
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New York City Bill Nos. 888-A and 901-A, collectively referred to as the “Retirement Security for All” acts, will require private employers of five or more employees to enroll covered staff in either a city or company-managed retirement savings plan.
Under the new law, employers are responsible for automatically enrolling eligible employees—defined as those who are least 21 years of age and work 20 or more hours per week in NYC—in individual retirement savings accounts and depositing employee funds into the IRA accounts. Employers must also maintain records demonstrating compliance with the new laws for at least three years. Note that employer matching contributions are not required.
Employees may opt out of the program or adjust contribution rates up or down from the default 5%. IRAs are portable and may be rolled over into other retirement savings plans.
The new laws create a new agency, the Retirement Savings Board, to oversee and enforce the program. Although the law became effective at the beginning of August 2021, the board has up to two years to formalize the program details and set a commencement date.
- Look for more news from the NYC Retirement Savings Board when program details become available.
- Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.
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