The New York State Secure Choice Savings Program (SCSP) is New York’s state-mandated retirement savings program for private-sector employees without access to a workplace retirement plan. Enacted into law in 2018, the program is now moving into its implementation phase, with official registration deadlines set for 2026 and an employer portal live on the state’s Secure Choice website.
More from our experts
What you’ll learn
What you’ll learn
Fast facts about the New York State Secure Choice Savings Program
- Scheduled to roll out in 2026 and employer registration is open
- There’s no cost for employers to facilitate the program
- Private-sector employers with 10 or more employees may be required to participate but can certify an exemption if they already offer a qualified retirement plan
- Eligible employees are automatically enrolled, but may opt out and if they do must wait until a future open enrollment period to participate
Once active, the program will require certain New York employers to automatically enroll eligible employees in a state-facilitated Roth IRA, unless the employee chooses to opt out. Employers that already offer a qualifying retirement plan may instead certify an exemption from the program.
Below, we’ll break down the latest developments, including who must register, upcoming deadlines, and what employers need to know as the New York State Secure Choice Savings Program rolls out.
New York Secure Choice registration is now open
New York State has released official registration details for the New York State Secure Choice Savings Program, which is scheduled to roll out in 2026. Eligible employers are now able to register for the program, and required deadlines have been established based on employer size.
Employer registration deadlines
Employers required to facilitate the program must register by the following dates:
- March 18, 2026: 30 or more employees
- May 15, 2026: 15 to 29 employees
- July 15, 2026: 10 to 14 employees
Employers are required to register and facilitate the program if they:
- Have 10 or more employees
- Have been in business for at least two years
- Do not already offer a qualified retirement plan
- Employers that already offer a qualifying retirement plan may certify an exemption from the program instead of registering.
To file an exemption, employers will need:
- An access code provided in their Secure Choice notification
- Their employer identification number (EIN)
Exemptions and registrations can be completed through the official New York Secure Choice portal.
Does New York have a state-mandated retirement program?
In a nutshell, the New York State Secure Choice Savings Program is a retirement savings program that’s designed for the state’s private-sector employees who are without access to a retirement plan from their employer. Though it is not yet active, the New York State Secure Choice Savings Program Board suggests that all private sector employers and nonprofit organizations actively monitor developments and announcements.
Why programs such as the New York State Secure Choice Savings Program are gaining traction
More than half of Americans polled in a recent Bankrate survey feel that they are moving in the wrong direction when it comes to putting money away for their post-work years. In New York State alone, two-thirds of workers in lower income brackets have neither a pension nor any money saved in a retirement account. Implementing a savings program could potentially help the more than 4 million private sector New York employees without retirement savings have access to a qualified retirement plan.
Now that we better understand why these types of plans are picking up steam, let’s find out which employers will be expected to offer it and how the savings plan will work.
Plan details employers should know
The New York State Secure Choice Savings Program is a state-facilitated retirement savings program that uses automatic payroll deductions to help employees save for retirement. Employee contributions are deposited into a Roth IRA, which is the default account type under the program.
There is no cost to employers to facilitate Secure Choice. Once the program is live, employers will be responsible for:
- Providing required program notices to employees
- Automatically enrolling eligible employees, unless they opt out
- Withholding employee contributions through payroll
- Remitting contributions to the program administrator
Employers are not allowed to make matching or discretionary contributions under Secure Choice. Businesses that wish to contribute to employee retirement accounts must sponsor their own retirement plan.
Let’s find out more about how this savings program got its start.
Is the New York State Secure Choice Savings Program a law?
The New York State Secure Choice Savings Program was passed by the state senate in June 2021. On October 21, 2021, New York Governor Kathy Hochul signed Senate Bill S5395A into effect. The bill guarantees private sector and nonprofit employees the opportunity to invest in a qualified retirement plan by requiring employers to provide access to a Roth IRA. The bill requires that all private sector employers and nonprofit organizations that do not currently offer a qualified retirement plan participate in the program.
What type of plan will New York State Secure Choice Savings Program be when it’s active?
The New York State Secure Choice Savings Program is structured as a state-facilitated Roth IRA program. Employee contributions are made through automatic payroll deductions using after-tax wages and deposited into an individual Roth IRA account.
Do I have to offer the New York State Secure Choice Savings Program if I already offer a retirement savings program?
Only businesses that do not have a current retirement plan program in place must participate. If employers have a qualified pension plan or any of the following retirement plans in place, participation in the plan is not required:
|
|
|
|
|
|
Participation in the program is free for New York employers, with all costs absorbed by a one-time $4 million investment.
Registration and enrollment periods have not yet opened, so it’s a good idea for private sector employers to monitor the New York State Secure Choice Savings Program website for further updates.
More details employers and employees will want to know
- The plan is designed as an automatic payroll deduction program, with contributions automatically deducted from employee paychecks
- All employees will automatically be enrolled in the program with a default contribution rate of 3%, although employees have the choice to change the deduction percentage or opt out of the program altogether
- Employers are not able to contribute to the employee’s Roth IRA
- If an employer wishes to contribute to their employee’s retirement plan, they may want to sponsor their own plan
Understanding the New York State Secure Choice Savings Program makes good business sense
Access to retirement savings can be a “win-win” scenario for both the employees who receive them and employers who offer them. Whether it is a state-sponsored plan like the New York State Secure Choice Savings Program or a partnership with a private insurance company, offering retirement savings can go a long way toward attracting new hires and retaining long-term employees. If you need assistance understanding the ins and outs of setting up a plan — or what the different options are — our team can help.
Take a tour to see how easy payroll can be.
Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.