After some delay, New York State has officially launched its mandatory retirement savings program for private-sector employers and their employees - The New York State Secure Choice Savings Program (“Program”). Covered employers will be required to begin registering their business beginning in early 2026.

About the Program

The Program is a state-sponsored retirement savings program for private-sector employers who do not currently offer a qualified retirement plan (like a 401(k) plan). Covered private employers will be required to register their business and facilitate the Program when notified by the Program. Right now, all employers must register, but those who are exempt may certify that the Program is inapplicable to them because they offer a qualified retirement plan and opt out.

While a mandatory requirement for certain employers to register, the Program is a voluntary retirement program for their employees who want to have the chance to save by making automatic after-tax contributions to their own Roth Individual Retirement Account (IRA).

Enrollment Process and Contribution Procedures

• Once an employer registers its employees, employees will have 30 days to opt out of the Program or customize their savings rate and investment choices.
• If employees choose to stay enrolled in the Program, at the end of the 30-day period, employers will record their employees’ choices and automatically deduct contributions from employees’ paychecks and deposit them into the employees Roth IRAs (unless otherwise customized, the default contribution rate will be 3%, which may increase by 1% each year until it reaches 10% of the employee’s total pay).
• If employees choose to opt out of the Program, they may re-enroll at any time.
• If employees change jobs, they maintain their retirement account in the Program, and their new employer may contribute to it on their behalf.

Which should be welcomed as good news for employers, the Program is free, imposes no fiduciary responsibility on employers, and does not require employer contributions. In fact, employers are not allowed to make contributions, simplifying compliance and administrative tasks. After an employer registers, all administration of the Program is run by New York State.

Employer Eligibility Requirements

Employers who meet the following criteria will be required to register their business and their employees into the Program:

• Employ 10 or more employees;
• Do not offer a qualified retirement plan; and
• Have been in business in New York State for at least two years.

Registration Deadlines and Next Steps for Employers

Employers are required to at least register their company at www.NewYorkSecureChoice.com by the following deadlines:

• Employers with 30 or more employees: March 18, 2026
• Employers with 15 to 29 employees: May 15, 2026
• Employers with 10 to 14 employees: July 15, 2026

The Program states it will notify employers when it is time to register, and each employer will be provided a unique access code to register. Once registered, employers will need to continue setting up their respective accounts by providing basic employee and payroll information.

Employers have an obligation to explain to employees that they have 30 days to either opt out of the Program or select their contribution rate. Employers will then be able to process their employees’ selected payroll contributions by beginning payroll deductions for the employees staying in the Program. The Program will communicate with employees directly regarding their participation, contribution and investment options.

Employers who register and receive their access code but already offer a qualified retirement plan for their employees may then certify their exemption to opt out of the Program.

Consult Legal Counsel to Ensure Full Compliance with Program Requirements

Employers should be on the lookout for notice from the State on when they are required to register with the Program. They should register by that date and monitor their email (and spam folders) for their Program access code. Employers should consult counsel regarding questions on the Program’s requirements, employer obligations, the registration process, whether they can certify as exempt, and whether they should utilize the Program or offer their own employer-sponsored qualified retirement plan to employees.

To find out more information on the Program, employers may visit: Program Details - New York Secure Choice Savings Program

Afsha Malik, law clerk at Tarter Krinsky & Drogin, also contributed to this article.