Way back in 2018, the state of New York established the New York Secure Choice Retirement Savings program that required retirement plans for most employees. Now, the law is beginning to roll out. This means that many employers will either need to register for the state program or set up an independent retirement plan. Is your practice affected?
Overview of the New York Secure Choice Retirement Savings Program
Federally, there is no requirement to offer retirement to employees. It’s a valuable benefit, and it helps employees build long-lasting careers, but it’s not a national law. But because retirement is often challenging for employees to achieve without support from their employers, more and more states are requiring it.
In New York state, most private employers who do not already provide a retirement plan for their employees will need to register with the New York Secure Choice Retirement Savings Program. This law applies to the entire state of New York, not just NYC, by the way.
If your practice has been in business for at least two years and you have 10 or more employees, you must participate or set up an independent retirement plan. With the New York state plan, employees will be enrolled in a Roth IRA. Then they can customize their contributions to help them achieve their retirement goals.
Registration Deadlines Depend on Employer Size
Many healthcare, dental, and veterinary practices fall within the 10-29 employee range, so take note of these dates. You may already be required to register for New York retirement, depending on how many employees you have.
- Employers with 30 or more employees must register by March 18, 2026.
- Employers with 15 to 29 employees must register by May 15, 2026.
- Employers with 10 to 14 employees must register by July 15, 2026.
Setting Up Retirement for Your Team
The New York Secure Choice Retirement Savings Program has a simple walkthrough for setup. You can also find lots of resources to help you understand your choices. Employees have just as many resources available, if they have questions about ways to save and plan for their futures. If you already offer a qualifying retirement plan, you may be able to file for an exemption. Check the plan’s criteria for more information.
Alternatives to the New York Secure Choice Retirement Savings Program
What if you have under 10 employees? The state doesn’t legally require you to offer retirement right now, but you might want to consider it anyway. Studies show that almost all employees consider retirement an important benefit. Believe it or not, most would even turn down a job offer that didn’t include it.
If you’re running the mental calculations and worrying about expenses, the ROI of a 401(k) might surprise you. Yes, there may be a base fee or employer match, but consider how retirement benefits could position your practice against competition. You’d have more bargaining chips for recruitment, and retention could improve. Your existing employees would have more reason to stick around. Plus, if New York lowers the threshold for the number of employees required to enroll in a retirement plan like other states have done (or you decide to expand your practice), you’ll be ready.
Get Ahead of Compliance with HR for Health
Did this New York retirement law update catch you off guard? Not us! We knew it was coming, and if you had been using HR for Health, you would have known, too. That’s because we automatically update you with any relevant law updates and make sure you have all the documents ready to go. You won’t lose any paperwork in the cloud, and we won’t let you lose track of time.
HR for Health connects directly to independent retirement options, so you can manage benefits, documentation, timetracking, payroll, and all your compliant policies in one convenient place. Schedule a demo to see why HR for Health was made for practices like yours.
