Employees of private companies in New York may soon enjoy 401(k) similar programs in their workplace if they do not already enjoy them. This advantage makes New York one of the increasing number of states which are implementing this advantage. New York Governor Andrew M. Cuomo will probably sign a budget deal on April 6 which will help businesses to offer their workers complete access to the Roth individual accounts for retirement overseen by state. About 3.5 million employees working in the private sector in New York work for those employers who does not provide any kind of 401(k) plan, or a pension, or any other kind of savings option.
Many states, similar programs
New York is not a pioneer in making such retirement programs. Oregon holds the distinction of being the first state to do so. The first program was rolled out in the summer of 2017. A number of other states have followed suit.
In his statement, New York Governor Cuomo said that his government has worked for a number of years to create and pass a particular retirement program which will enable millions of city residents the much-awaited opportunity to save. He added that the government in the 2018 budget, has proposed and also passed a progressive and common sense reform which will presumably strengthen the work force.
Other than New York, nine other states already have them or on the cusp of enacting similar plans. These plans have progressed even as Congress repealed a number of Obama era rules which encouraged states to craft retirement programs. These programs were created specifically for individuals who do not have any kind of workplace savings accounts.
States like Washington, California, New Jersey, Connecticut, Massachusetts, Illinois, Maryland, and Vermont have set up similar retirement schemes. Seattle had started its own program in November. About 15 states have set up legislation to begin programs. Many are also studying the issue. Plans of different states differ in their styles. To give an example, New York State Secure Choice Savings Program will be a voluntary one. There is no compulsion for any employer to sign. Companies will only be responsible for enabling the payroll deductions to Roth retirement accounts. Majority of the finer details will be as per the decision of a board. The board will consist of seven members. In comparison, states like Oregon and Maryland that a few specific employers must enroll their employees in their state programs.