New York CIty Council Member Ben Kallos

WCBS 2 New York City Council Passes Bill Mandating IRAs For Small Business Workers by Alice Gainer

New York City Council Passes Bill Mandating IRAs For Small Business Workers

About 1.5 million private sector workers in New York City don’t have access to retirement plans through their employers.

On Thursday, the City Council passed a bill to change that, CBS2’s Alice Gainer reported. All it needs now is the mayor’s signature.

“I tell my employees all the time, I say, ‘Look, you should try to save your money,'” said Lide Sementilli, general manager at Total Care Pharmacy in the Bronx.

Sementilli’s five employees will get some help to do that after the City Council passed a bill mandating IRAs (individual retirement accounts) for small businesses.

“Nearly half of New Yorkers who are retirement age have less than $10,000 saved up,” said City Council Member Ben Kallos.

The plan is sponsored by the city for private sector employers that have at least five workers and don’t already offer a retirement plan.

Employees will be automatically enrolled with 5% of their wages going into their retirement fund. They can adjust the amount or opt-out. Gig workers are allowed to opt-in.

“There will be no employer matching. No employer liability. All the employer is doing is facilitating the payroll deduction,” Kallos said.

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