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Legislative Memo

Cate Tully
Director of Government Affairs
T 518.465.7511, ext. 212
www.bcnys.org

BILL:

S.4344-A (Savino) / A.4982-A (Rodriguez)

Support

SUBJECT:

To Create State Run Pension Plans for Private Sector Workers

 

DATE:

June 13, 2017

 

The Business Council opposes S.4344-A (Savino) /A.4982-A (Rodriguez), a bill that would establish in the form of an automatic enrollment payroll deduction IRA, the New York State secure choice savings program for private sector employees.

There is growing concern in our nation about insufficient retirement savings, even though there are many retirement plans already available to employees outside the workplace.

Our concerns are several:

At minimum, we believe these and other significant issues including the compliance and start-up costs to the state in developing and administering such a program and whether such a program will address the problem of employees signing up for retirement plans, need to be considered.

It is equally important to note that where savings plans are available, employees are not taking advantage of current market place products – including the new federally administered retirement savings plan- myRA program established by the U.S. Department of Treasury (www.myra.gov) that offers access for individuals that do not have an employer-sponsored plan.

In addition, several states have also enacted legislation known as the “Marketplace” which focuses on private providers and myRA and establishes a web-portal structure to connect private sector employers with qualifying plan vendors. Washington and New Jersey have taken this approach.

For the reasons stated above, The Business Council recommends against approval of S.4344-A (Savino) / A.4982-A (Rodriguez) at this time.