Workers who lack access to retirement saving accounts in New York could soon receive one as lawmakers this week approved the finishing touches to a measure that expanded eligibility to the initial proposal.
The measure now goes to Gov. Andrew Cuomo’s desk for his consideration.
The bill approved this week in the state Senate adds to the existing, but yet-to-be implemented, Secure Choice Savings Program by requiring companies with at least 10 employees that do not currently offer their workers a way to save for retirement to enroll them in an IRA under the program unless the worker opts out.
The original retirement savings program was first approved in 2018 as part of the state budget. If the change is given final approval, about 2.5 million New York workers could be affected, according to the AARP.
The group hopes the measure will significantly expand retirement savings options for workers at smaller businesses that do not currently offer plans.
New York City Mayor Bill de Blasio recently approved a similar program.
“This bill could help millions of private sector employees in New York State save for their retirement and make themselves financially secure and independent,” said AARP New York State Director Beth Finkel. “AARP New York urges Governor Cuomo to sign this legislation as soon as possible to ensure this stronger Secure Choice Savings Program is up and running and empowering more New Yorkers to save.”