Both of New York’s Houses of State Legislature have backed Gov. Andrew Cuomo’s small business retirement plan.
According to Newsday, Secure Choice Savings Program Act is a proposal for private-sector employers that would allow them to opt into the retirement program, along with their employees unless they individually opted out.
Proposed in January by Cuomo for the 2018 budget, Secure Choice Savings is voluntary and would serve employees of small businesses, independent contractors, and freelancers. Employers would have to cover the administrative cost of setting up payroll deductions, and they would not be allowed to match employee contributions.
One of the main issues is whether or not the program will be administered by an existing state agency or a new board.
According to the Times Union, mandated state-run retirement savings plan have gotten pushback from businesses who say the program will hurt private competition, as well as imposing extra regulations and can expose employers to lawsuits.
An editorial by the Newsday editorial team stated that New York City Mayor Bill de Blasio proposed a similar program in 2016 but hit a wall when federal regulations preventing cities from setting up a savings plan.
The editorial team also quoted AARP statistics that says that more than half of New York’s private-sector workers, about 3.5 million people, don’t have access to an employer-sponsored 401K plan.
Best Times Financial Wealth Adviser Daniel Jeffery admitted that the savings rates are low. He believes that there are enough methods already in place without adding another state program, according to WAER.
“Personally and professionally, as a small business owner, I don’t want any more government mandates on me. I’m not confident that another state mandated program is going to solve the savings issue,” Jeffery is quoted as saying.
