The Business Council of New York State, a broad-based, statewide membership organization of over 4,000 companies, chambers of commerce and trade associations, has reviewed the aforementioned legislation and supports its enactment.
This legislation would authorize the New York State Comptroller's Office to establish a Small Business Retirement Plan Assistance Program to provide small businesses and their employees access to a secure and suitable retirement savings program.
This legislation seeks to encourage more small businesses to offer retirement plans to their employees by helping them defray the administration costs associated with the management of such retirement programs. To accomplish this, the bill allows the Comptroller's Office to become a central administrator, with the ability to "pool" or use another type of process for program participants which would result in lower costs incurred by small business owners.
Currently, only about half of all Americans are earning retirement benefits at work, and many are not familiar with the basics of investing. Many people mistakenly believe that Social Security will pay for all or most of their retirement needs. A comfortable retirement usually requires a combination of Social Security, pensions and investments. In an effort to encourage more small businesses to offer such retirement savings programs, this legislation takes away the costly administration burden the small business owner would have to incur.
For these reasons mentioned above, The Business Council supports A.8423/S.4856 and encourages its enactment into law.