Mathew W. Burr, MJ-LEL, MBA, MHRIR, GPHR, SHRM-SCP, SPHR, CPHR-INT, Chartered CIPD Uncategorized

2025 New York State Secure Choice Savings Plans Updates

New York State’s Secure Choice Savings Program was officially launched on October 8, 2025.  This means that employers who don’t already offer a retirement plan must register with Secure Choice and allow their employees to save through the state program before the following deadlines: 

Employer Eligibility

As of October 2025, the following criteria determine employer eligibility for the New York State Secure Choice Savings Program:

  • Business Size: Employers with 10 or more employees who have been in business for at least two years are required to participate in the program if they do not already sponsor a qualified retirement plan.
  • No Existing Retirement Plan: Employers are exempt from participating in Secure Choice if they already offer a qualified retirement plan, such as a 401(k), 403(b), Simplified Employee Pension (SEP) plan, Savings Incentive Match Plan for Employees (SIMPLE) IRA, or a defined benefit plan.
  • Employee Definition: An employee is defined as someone who is at least 18 years old and works at least 20 hours per week.

Employer Responsibilities

Employers subject to the Secure Choice Savings Program have specific responsibilities, including:

  1. Registration: Employers must register with the Secure Choice Savings Program within the timeframe specified by the state. Registration typically involves providing basic business information and employee details.
  2. Employee Notification: Employers are required to notify their employees about the Secure Choice Savings Program and their option to participate. This includes providing employees with program information and enrollment materials.
  3. Facilitating Enrollment: Employers must facilitate employee enrollment in the program. This typically involves providing employees with access to the program’s online enrollment portal or paper enrollment forms.
  4. Payroll Deductions: Employers are responsible for deducting employee contributions from their paychecks and remitting those contributions to the Secure Choice Savings Program.
  5. Maintaining Records: Employers must maintain accurate records of employee participation, contributions, and other relevant information related to the Secure Choice Savings Program.
  6. No Employer Contributions: Employers are not required or permitted to contribute to their employees’ Secure Choice accounts. The program is funded solely by employee contributions.
  7. Neutrality: Employers must remain neutral regarding employee participation in the program. They cannot encourage or discourage employees from enrolling.
  8. Compliance: Employers must comply with all applicable rules and regulations of the Secure Choice Savings Program.

Employee Participation

  • Automatic Enrollment: Employees are automatically enrolled in the Secure Choice Savings Program, but they have the option to opt out.
  • Contribution Rate: The default contribution rate is typically a percentage of the employee’s salary (e.g., 3% or 5%). Employees can choose to adjust their contribution rate or opt out of the program altogether.
  • Investment Options: Employees have access to a range of investment options within the Secure Choice Savings Program, typically including a default investment option (e.g., a target-date fund) and other diversified investment choices.
  • Portability: Employees can take their Secure Choice Savings Program accounts with them if they change jobs.
  • Withdrawals: Employees can typically withdraw funds from their Secure Choice Savings Program accounts, subject to certain restrictions and potential tax penalties.

Important Deadlines
Employers should be aware of the following important deadlines related to the Secure Choice Savings Program:

  • Registration Deadline: Employers must register with the Secure Choice Savings Program by the deadline specified by the state. This deadline may vary depending on the size of the employer.
  • Enrollment Deadline: Employers must facilitate employee enrollment in the program by the deadline specified by the state.
  • Contribution Remittance Deadline: Employers must remit employee contributions to the Secure Choice Savings Program by the deadline specified by the state.

Note: It is crucial for employers to stay informed about these deadlines and ensure that they meet all requirements in a timely manner.

Penalties for Non-Compliance
Employers who fail to comply with the requirements of the Secure Choice Savings Program may be subject to penalties, including:

  • Fines: Employers may be assessed fines for failing to register, enroll employees, or remit contributions in a timely manner.
  • Other Sanctions: The state may impose other sanctions on employers who violate the rules and regulations of the Secure Choice Savings Program.

Resources for Employers
Employers can access a variety of resources to help them understand and comply with the Secure Choice Savings Program, including:

Additional State Information:

All active state mandate programs 
The following states have enacted legislation and have either implemented or are in the process of implementing a state-mandated program. 

California

  • Plan Name: CalSavers
  • Status: Mandate in place
  • Deadlines: Deadline passed for 5+ employees; December 31, 2025, for 1-4 employees
  • Details: Not all employers are required to participate. Only employers who do not sponsor a retirement plan and have one or more California employees must join CalSavers.
  • Fines: $250 per eligible employee

Illinois

  • Plan Name: Illinois Secure Choice
  • Status: Mandate in place
  • Deadlines: Deadline passed for 5+ employees
  • Details: Not all employers are eligible. Only private-sector employers who do not offer a qualified retirement plan, had at least five employees in every quarter of the previous calendar year, and have been in business for at least two years must facilitate Illinois Secure Choice.
  • Fines: $250 per employee for the first calendar year the employer is non-compliant

Oregon

  • Plan Name: OregonSaves
  • Status: Mandate in place
  • Deadlines: Deadline passed for 1+ employees
  • Details: All Oregon employers are required by law to facilitate OregonSaves if they don’t offer a retirement plan for their employees.
  • Fines: $100 per affected employee, with a $5,000 maximum fine per year

Connecticut

  • Plan Name: MyCTSavings
  • Status: Mandate in place
  • Deadlines: Deadline passed for 5+ employees
  • Details: Eligible Connecticut businesses are required to facilitate MyCTSavings if they don’t offer a retirement plan and have 5 or more employees.
  • Fines: Penalties may be imposed. Bill is currently in the legislature.

Colorado

  • Plan Name: Colorado SecureSavings Program
  • Status: Mandate in place
  • Deadlines: Deadline passed for 5+ employees
  • Details: All Colorado employers who have been in business for at least 2 years, have 5 or more employees, and don’t offer a qualified retirement plan for their employees are required by law to facilitate Colorado SecureSavings.
  • Fines: $100 per affected employee with $5,000 maximum fine per year

Maine

  • Plan Name: Maine Retirement Savings Program
  • Status: Mandate in place
  • Deadlines: Deadline passed for 5+ employees
  • Details: Every Maine employer with 5 or more employees will need to facilitate the program if they don’t already offer their own qualified retirement savings plan.
  • Fines: Penalties for failing to enroll employees go into effect on July 1, 2025, as follows:
    • $20 per employee from July 1, 2025, to July 30, 2026
    • $50 per employee from July 1, 2026, to July 30, 2027
    • $100 per employee on or after July 1, 2027

Virginia

  • Plan Name: RetirePath
  • Status: Mandate in place
  • Deadlines: Deadline passed for 25+ employees
  • Details: State law requires Virginia employers with 25 or more eligible employees who have operated for 2 or more years and not offered a qualified, employer-sponsored retirement plan must now register and facilitate RetirePath.
  • Fines: $200 per eligible employee

New Jersey

  • Plan Name: RetireReady NJ
  • Status: Mandate in place
  • Deadlines: Deadline passed for 40+ employees; November 15, 24 for 25+ employees
  • Details: Every New Jersey employer with 25 or more employees will need to register with the program if they don’t already offer their own qualified retirement savings plan.
  • Fines: Businesses that don’t follow state-mandated retirement legislation within one year will receive a written warning. Each following year of non-compliance will result in fines of:
    • 2nd year: $100 per employee
    • 3rd and 4th years: $250 per employee
    • 5th year and beyond: $500 per employee

Delaware

  • Plan Name: Delaware EARNS
  • Status: Mandate in place
  • Deadlines: October 15, 2024 for 5+ employees
  • Details: Every Delaware employer with five or more employees will need to facilitate the program if they don’t already offer their own tax-qualified retirement plan.
  • Fines: $250 per affected employee, with $5,000 maximum fine per year

Maryland

  • Plan Name: Maryland Saves
  • Status: Mandate in place
  • Deadlines: December 31, 2024 for 1+ employees
  • Details: Businesses are required to register if they have been in operation for at least 2 calendar years, have at least one employee over the age of 18, and use an automated payroll system.
  • Fines: Maryland does not impose a penalty, instead, they use an incentive, offering businesses that enroll $300 per year, waiving the annual filing fee for Maryland businesses.

Vermont

  • Plan Name: Vermont Saves
  • Status: Mandatory for Vermont employers with 5+ employees who do not offer a qualified retirement plan. 
  • Deadlines: March 1, 2025 for 5+ employees 
  • Details: Employees are automatically enrolled in a Roth IRA with a default contribution rate of 5% that increases by 1% annually up to 8%, unless they opt out or select a different rate. Employers are not required to contribute but must facilitate payroll deductions. The program is free for employers and integrates with existing payroll systems. 
  • Fines: $10 per employee before October 1, 2025, then $20 per employee until September 30, 2026. After October 1, 2026 employers could pay up to  $75 per employee.

In-progress state mandate programs

Nevada

  • Plan Name: Nevada Employee Savings Trust
  • Status: Will be mandatory
  • Deadlines: July 1, 2025 for 1,000+ employees; January 1, 2026 for 500-999 employees; July 1, 2026 for 100-499 employees; Jan 1, 2027 for <100 employees
  • Details: In 2023, the Nevada legislature passed SB305 which mandates the establishment of a retirement savings program for private sector employees.
  • Fines: Information not available at this time.

Massachusetts

  • Plan Name: Massachusetts Defined Contribution CORE Plan
  • Status: Nonprofit mandatory only
  • Deadlines: Currently effective, but no deadline yet
  • Details: Massachusetts nonprofit organizations with 20 employees or fewer may be eligible to adopt the CORE Plan. The CORE Plan is structured as a 401(k) Multiple Employer Plan (MEP). The MEP structure allows each adopting employer to join the CORE Plan under one plan and trust by executing a Participation Agreement.
  • Fines: Not applicable.

New York

  • Plan Name: New York State Secure Choice Savings Program
  • Status: Will be mandatory
  • Deadlines: The SCSP is under development and there is no enrollment requirement at this time.
  • Details: If you’re an employer in New York, state laws require you to offer the Secure Choice Savings Program if you have had 10 or more employees during the entire prior calendar year, have been in business for at least two years, and have not offered a qualified retirement plan during the prior two years.
  • Fines: Information not available at this time.

Minnesota

  • Plan Name: Minnesota Secure Choice Retirement Program Act
  • Status: Will be mandatory
  • Deadlines: Expected to launch by Jan 1, 2025
  • Details: On May 19, 2023, Governor Walz signed into law a bill establishing the Minnesota Secure Choice Retirement Program. Employers with 5 or more covered employees that do not sponsor a retirement plan for their employees are required to participate in the plan.
  • Fines: Information not available at this time.

Hawaii

  • Plan Name: Hawaii Retirement Savings Program
  • Status: Will be mandatory
  • Deadlines: Implementation in progress
  • Details: The Hawaii Retirement Savings Program is a state-facilitated payroll-deduction retirement savings plan where individuals can choose to opt into the program. Employers will be required to provide covered employees with written notice that they may opt into the program, withhold covered employees’ contribution amount from their salary or wages, and transmit covered employees’ payroll deduction contributions to the program.
  • Fines: Information not available at this time.

Rhode Island

  • Plan Name: Rhode Island Secure Choice Retirement Savings Program Act
  • Status: Will be mandatory
  • Deadlines: Implementation in progress
  • Details: Private-sector employers with five or more employees will be required to offer a qualified retirement plan or opt into the state-run program.
  • Fines: Information not available at this time.

Washington

  • Plan Name: Washington Saves
  • Status: Will be mandatory
  • Deadlines: Expected to launch Jan 1, 2027
  • Details: Employers must offer their employees access to a state-facilitated IRA if they don’t offer a retirement savings plan. Employees would be enrolled automatically unless they opt out. The program is slated to launch in 2027 and Washington will continue to offer its small-business retirement marketplace in the meantime.
  • Fines: Penalties beginning after January 1, 2030.

New Mexico

  • Plan Name: New Mexico Work and Save IRA
  • Status: Voluntary
  • Deadlines: 7/1/24 deadline, but still voluntary
  • Details: Work and Save is a voluntary savings program for private-sector and nonprofit employers and employees and the self-employed facilitated through a Roth Individual Retirement Account.
  • Fines: Not applicable.

Missouri

  • Plan Name: Missouri Show-Me MyRetirement Savings Plan
  • Status: Voluntary
  • Deadlines: Expected to launch September 1, 2025
  • Details: Missouri introduced HB 1732 in 2022, which would create a voluntary MEP for small employers with 50 or fewer employees.
  • Fines: Not applicable. 

Pennsylvania

  • Plan Name: Keystone Saves
  • Status: Will be mandatory
  • Deadlines: To be determined pending bill passage by Pennsylvania State Senate
  • Details: Employers will be required to offer a state-sponsored IRA or other qualified retirement plan. Employers do not have to participate if they have an established retirement program, have fewer than five employees, or have been in business less than 15 months.
  • Fines: According to the current bill,  covered employers shall not be subject to a penalty for not participating in the program.

Georgia

  • Plan Name: Peach State Saves
  • Status: Voluntary
  • Deadlines: To be determined pending bill passage
  • Details: In February 2025, Georgia introduced SB 226, requiring businesses with 5+ employees and over one year in operation to offer a state-sponsored IRA or another retirement plan unless they already have one.The default payroll deduction is a Roth IRA with a 5% contribution rate. The state may add a traditional IRA option and adjust the contribution rate, increasing it annually by up to 1% (maximum 10%).
  • Fines: Not applicable.

States with legislation being considered
The following states have legislation currently being considered for state-mandated reprograms: 
Alaska, Arizona, Arkansas, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Utah, West Virginia, Wisconsin, Wyoming

Unknown state mandate programs 
The following states have not yet made clear if they intend to mandate a state retirement program. We will actively update this article as legislation changes.

  • Alabama
  • Florida
  • South Dakota

Original 2022 Article

New York State Secure Choice Savings Plan Legislation

In late 2021, new legislation was signed into law, requiring private employers who do not sponsor a retirement plan to automatically enroll their employees into the State’s new program.  The New York State Secure Choice Savings Plan (Program). The savings plan is an IRA program funded through payroll deferrals.  The plans are portable and can move from one employer to another if an employee change organization. 

“Eligible Employers
The Program covers employers who have employed at least 10 employees in New York State at all times during the previous calendar year, that have been in business at least two years, and have not sponsored a qualified retirement plan for their employees in the preceding two years. Employers include all persons or entities engaged in a business, industry, profession, trade or other enterprise in New York state – including both for profit and nonprofit organizations. 

Employers are prohibited from terminating their own retirement plan in order to join the Program, and, to this end, the Program specifically excludes employers who have offered a qualified retirement plan in the prior two years. 

Eligible Employees
Eligible employees will be automatically enrolled into the Program, with a deferral rate of 3%, and may change this rate at any time (subject to rules set by the Board). Participating employees will be able to make elective deferrals up to the maximum limits under Internal Revenue Code (Code) Section 219 ($6,000 + $1,000 catch up – although catch up contributions are not mentioned in the statute). Employees who opt out may re-enroll again during an open enrollment period (at least once per year). 

Program Highlights

  • Investment Options – The Program will contain various types of investment options intended to offer returns on employee contributions, with the long-term goal of utilizing these account balances to secure retirement income without incurring debt or liabilities to New York State.
    • Default Investment Option. The Program will employ a default investment option that will take into account various factors, including cost, risk, benefit level and ease of enrollment. 
    • Other investment options under consideration include: a conservative principal protection fund; a growth fund; a secure return fund; an annuity fund; a growth and income fund; and a life cycle fund with a target date based upon factors determined by the Board. 
  • Use of Third-Party Service Providers. The Program will contract with necessary service providers to offer retirement benefits, including investment managers, financial organizations, other financial service providers, consultants, actuaries, counsel, auditors, third-party administrators and other professionals as necessary. 
  • Performance Reviews. Financial organizations’ performance will be periodically reviewed, including reviews of returns, fees and customer service, with reviews posted to the Program’s website. 
  • Plan Administration Reviews. The Program’s enrollment process will be monitored, including such aspects as employee opt-in procedures, setting contribution rates, selecting investment options and termination of participation in the Program.
  • Financial Education. The Program will facilitate education and outreach for both employers and employees.
  • Disclosures. The Board will design and disseminate informational materials, which shall include background information on the Program as well as necessary disclosures as required by law. 
  • In-Service Withdrawals. The Board will also consider withdrawal provisions (i.e., economic hardships, plan loans, portability, leakage). However, no such provisions will be available at inception. 
  • Program Fees and Expenses. Program fees will initially come from New York state funds, but ultimately be paid out of future employee contributions. 

Required Disclosures
 Employers must provide employees with informational materials, including a disclosure form explaining many facets of the program, addressing: 

  • the benefits and risks associated with making contributions to the Program; 
  • the process for making contributions to the Program; 
  • how to opt out of the Program at any time; 
  • the process by which an employee can change the contribution rate from 3%; 
  • that employees are not required to participate in the Program or contribute more than 3%; 
  • the process for withdrawal of retirement savings;
  • the process for selecting beneficiaries of their retirement account;
  • how to obtain additional information about the Program; 
  • an advisory informing employees to contact financial advisors for financial advice, as employers are not liable for investment decisions;
  • information on how to access any available financial literacy programs; and
  • a notice that the Program fund is not guaranteed by the State. 

Employers must also provide a form to employees allowing them to elect to either opt-out or select a deferral rate other than 3%. 
As a matter of first impression, these forms and disclosures appear to be similar to those associated with qualified retirement plans, such as a summary plan description. The Board will develop informational materials for use by employers. 

NYS Secure Choice Savings Plan vs. NYC Retirement Security for All Act
Earlier in 2021, Mayor DeBlasio enacted the New York City Retirement Security For All Act (NYC Act), which contained similar provisions to the Program, but was limited to New York City employers. Some of the key differences between the two legislative packages are:

NYS Secure ChoiceNYC Retirement for All
Applies to employers who at all times during the previous calendar year employed at least 10 employees in New York State, and have been in business at least two years.Applies to employers with at least five employees in NYC
Covered employees include those 18 years of age or older, employed by a NY employer, earning wages in New York StateCovered employees include those working 20+ hours per week, age 21+, with regular work duties in NYC
Automatically enroll eligible employees at 3%Automatically enroll eligible employees at 5%
No penalties listedPenalties for noncompliance

“ (JDSUPRA)

NYC Retirement Security for All Act
This document outlines the key provisions and potential impact of the proposed NYC Retirement Security for All Act. The Act aims to address the retirement savings gap among private-sector workers in New York City by establishing a city-sponsored retirement savings program. This program would automatically enroll eligible employees, offering them a pathway to build retirement savings through payroll deductions. The document will explore the eligibility criteria, contribution mechanisms, investment options, and potential benefits and challenges associated with the implementation of this Act.

Overview of the Act
The NYC Retirement Security for All Act proposes the creation of a retirement savings program for private-sector employees in New York City who do not have access to a retirement plan through their employer. The program, often referred to as “NYC Secure Choice,” is designed to be a simple, accessible, and portable retirement savings option.

Eligibility
The Act targets employees who meet the following criteria:

  • Working for a Covered Employer: The employee must work for a private-sector employer in New York City that does not offer a qualified retirement plan (e.g., 401(k), 403(b), pension plan).
  • Employment Status: The employee must be at least 18 years old and work at least 20 hours per week.
  • Exclusions: Certain categories of workers may be excluded, such as independent contractors or those covered by collective bargaining agreements that provide for retirement benefits.

Enrollment

  • Automatic Enrollment: Eligible employees will be automatically enrolled in the program.
  • Opt-Out Option: Employees have the right to opt-out of the program if they choose. They can also re-enroll at a later date.
  • Employer Responsibilities: Employers are responsible for facilitating the program by:
    • Enrolling eligible employees.
    • Deducting contributions from employee paychecks.
    • Remitting contributions to the program administrator.
    • Providing employees with information about the program.