There are roughly 3.5 million private-sector workers in New York City, a significant percentage of whom have no access to retirement savings whatsoever.
This bill would facilitate voluntary retirement savings by private-sector workers to a city administered auto-enrollment individual retirement account. Auto-enrollment of employees would be mandatory through payroll deduction for employers with five or more employees who have not offered a retirement savings plan for the past two-years. Employees over 21 years of age who worked more than 20-hours a week would be auto-enrolled with a default contribution rate of 5%. Smaller employers who have not offered and independent contractors who do not have access to retirement savings would also be able to join “Savings Access New York.” Employers would not contribute to the plan and there would be no cost to employers.