Recently, Secure Choice, a voluntary workplace retirement savings option was included in the final 2018-19 New York State Budget. When the program is fully implemented in two years, Secure Choice will provide a convenient way for people to save on the job, and continue saving if they change jobs.
AARP thanks Governor Cuomo for his leadership in proposing this game-changing program in his executive budget. We applaud the Governor, Senate Leader Flanagan, Assembly Speaker Heastie and their houses for including Secure Choice as part of the final state budget (see pages 7-15), which was approved by the Legislature and is expected to be signed by the Governor.
What is Secure Choice?
The Secure Choice Savings Program will help more New Yorkers take control of their future, helping them grow savings so they can handle the rising cost of health care and basic needs.
It would create an optional payroll deduction Roth (post-tax contributions) IRA, or Individual Retirement Account, for private sector employees whose employers choose to offer it. The program will be optional for employers and employees and will be a convenient new tool for businesses who currently don’t offer their employees a way to save through payroll deduction.
AARP will be working to encourage small businesses to opt into Secure Choice and give their employees the chance to start saving. We expect many companies will; nearly three quarters of small businesses that don’t provide their own savings plan said they probably would offer a state-facilitated option if one became available. And Americans are 15 times likelier to save if they can do so through work.
Why Do New Yorkers Need it?
Over half of private sector workers in New York State have no access to a retirement savings plan at work, which creates a significant barrier toward saving for the future. To help bridge this gap, Governor Cuomo and state lawmakers recently passed a state-facilitated retirement savings option, known as the “Secure Choice Savings Program.” When the program is fully implemented in two years, Secure Choice will provide a convenient way for people to save on the job, and to continue saving if they change jobs.
What Do We Want You to Do About It?
You can thank your state legislator. By passing the Secure Choice Savings Program in the final state budget, Governor Cuomo and your state legislators are empowering more New Yorkers to save for their future. Please take a moment to thank them for taking action on this important issue.