![[New York] State Assembly passes mandatory auto-IRA bill](http://gpa.net/cdn/shop/articles/bigstock-Senior-Mature-Business-Woman-H-387664705_1200x.jpg?v=1622121540)
The New York State Assembly has passed a bill to create a mandatory automatic-IRA programme for private-sector companies that do not offer a retirement plan, Pensions & Investments reports.
The bill - passed on May 11 by a vote of 125-22 - ensures that employees are automatically enrolled into the Secure Choice Savings programme. Employees not wishing to participate in the programme would have to opt out.
A memo attached to the bill reportedly cited a 2012 study from Aon finding "that firms that have adopted automatic enrolment have savings plan participation rates of approximately 83 per cent, a full 18 per cent points higher than in firms that have not adopted automatic enrolment."
The memo added, “Automatic enrolment has shown to increase participation among these groups so that participation is closer to their counterparts."
New York state has had a voluntary Secure Choice law.
On May 11, New York City Mayor Bill de Blasio signed into law a mandatory auto-enrolment payroll deduction IRA program for employees of private-sector employers that do not offer a retirement plan and have at least five employees.
The bill will now be sent to the state Senate for approval, Iordan Mentore - a spokesman for the New York State Assembly - confirmed. He added that the bill is expected to pass.
Source: Pensions & Investments
(Links via original reporting)
The New York State Assembly has passed a bill to create a mandatory automatic-IRA programme for private-sector companies that do not offer a retirement plan, Pensions & Investments reports.
The bill - passed on May 11 by a vote of 125-22 - ensures that employees are automatically enrolled into the Secure Choice Savings programme. Employees not wishing to participate in the programme would have to opt out.
A memo attached to the bill reportedly cited a 2012 study from Aon finding "that firms that have adopted automatic enrolment have savings plan participation rates of approximately 83 per cent, a full 18 per cent points higher than in firms that have not adopted automatic enrolment."
The memo added, “Automatic enrolment has shown to increase participation among these groups so that participation is closer to their counterparts."
New York state has had a voluntary Secure Choice law.
On May 11, New York City Mayor Bill de Blasio signed into law a mandatory auto-enrolment payroll deduction IRA program for employees of private-sector employers that do not offer a retirement plan and have at least five employees.
The bill will now be sent to the state Senate for approval, Iordan Mentore - a spokesman for the New York State Assembly - confirmed. He added that the bill is expected to pass.
Source: Pensions & Investments
(Links via original reporting)
