Bill Text: NY A05978 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Ensures that employees are automatically enrolled into the secure choice savings program and if they do not want to participate in the program, they must opt out.

Spectrum: Moderate Partisan Bill (Democrat 29-4)

Status: (Introduced - Dead) 2020-02-12 - print number 5978b [A05978 Detail]

Download: New_York-2019-A05978-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5978
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 22, 2019
                                       ___________
        Introduced  by  M.  of  A.  RODRIGUEZ  --  read once and referred to the
          Committee on Governmental Employees
        AN ACT to amend the general business law,  in  relation  to  the  secure
          choice savings program
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 1301 of the  general  business  law,  as  added  by
     2  section  2  of  part  X of chapter 55 of the laws of 2018, is amended to
     3  read as follows:
     4    § 1301. Program established. There is hereby established a  retirement
     5  savings  program  in  the  form  of  [a] an automatic enrollment payroll
     6  deduction IRA, known  as  the  New  York  state  secure  choice  savings
     7  program.  The  general  administration and responsibility for the proper
     8  operation of the program shall be administered  by  the  board  for  the
     9  purpose  of  promoting  greater  retirement  savings  for private-sector
    10  employees in a convenient, low-cost, and portable manner. The board  may
    11  delegate  such  authority  and  responsibility  for  the development and
    12  implementation of the program to the department of taxation and  finance
    13  as the board deems proper.
    14    §  2.  Subdivision  9  of section 1304 of the general business law, as
    15  added by section 2 of part X of chapter 55  of  the  laws  of  2018,  is
    16  amended to read as follows:
    17    9.  Evaluate  and  establish  or  authorize the process for enrollment
    18  including the process by which an employee may opt not to participate in
    19  the program, select a contribution level, select an  investment  option,
    20  and terminate participation in the program.
    21    §  3.  Subdivisions 3, 4 and 5 of section 1309 of the general business
    22  law, as added by section 2 of part X of chapter 55 of the laws of  2018,
    23  are amended to read as follows:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08082-01-9
        A. 5978                             2
     1    3.  The  employee  informational  materials shall include a disclosure
     2  form.  The disclosure form shall explain, but not be limited to, all  of
     3  the following:
     4    (a) the benefits and risks associated with making contributions to the
     5  program;
     6    (b) the process for making contributions to the program;
     7    (c) how to [cease participation in] opt out of the program;
     8    (d)  the  process  by which an employee can participate in the program
     9  with a level of employee contributions other than three percent;
    10    (e) that they are not required to participate or contribute more  than
    11  three percent;
    12    (f) the process for withdrawal of retirement savings;
    13    (g)  the  process  for  selecting  beneficiaries  of  their retirement
    14  savings;
    15    (h) how to obtain additional information about the program;
    16    (i) that employees seeking financial advice should  contact  financial
    17  advisors,  that participating employers are not in a position to provide
    18  financial advice, and that participating employers are  not  liable  for
    19  decisions employees make pursuant to this article;
    20    (j)  information  on  how  to  access any available financial literacy
    21  programs; [and]
    22    (k) that the program fund is not guaranteed by the state;
    23    (l) that they can opt out after they have been enrolled.
    24    4. The employee informational materials shall also include a form  for
    25  an  employee  to  note  his  or  her  decision [regarding] to opt out of
    26  participation in the program or [election] elect to participate  with  a
    27  level of employee contributions other than three percent.
    28    5.  Participating  employers  shall  supply the employee informational
    29  materials to existing employees at least one month prior to the  partic-
    30  ipating employers' facilitation of access to the program.  Participating
    31  employers  shall  supply  the  employee  informational  materials to new
    32  employees at the time of hiring and new employees may opt out of partic-
    33  ipation in the program.
    34    § 4. Subdivision 1 of section 1313 of the  general  business  law,  as
    35  added  by  section  2  of  part  X of chapter 55 of the laws of 2018, is
    36  amended to read as follows:
    37    1. Participating employers shall not have any liability for an employ-
    38  ee's decision regarding whether to participate in, or opt  out  of,  the
    39  program or for the investment decisions of the board or of any enrollee.
    40    § 5. This act shall take effect immediately.