In 2017, the state’s Secure Choice Retirement Savings Investment Board (Secure Choice Board) will begin the development of a workplace retirement savings plan, known as Secure Choice, for private sector workers whose employers don’t offer a retirement plan. The plan will require employers of 5 or more to either provide a retirement plan or enable their employees to make a payroll contribution to a personal IRA administered by a financial services firm with oversight by the Secure Choice Board.
The Secure Choice statute requires that employers are protected from any liability or fiduciary responsibilities, exempted from ERISA, and have limited administrative requirements. It is anticipated that the program will be operational around late 2018. Employers will not be required to take any action until the program is operational at which point those with 100 or more employees will have one year, until late 2019 to meet the mandate. Employers with 50 or more employees will have two years, until 2020, and employers with less than 50 employees will have three years, until 202, to comply.
Be alert to vendors who are misinforming employers that they are now required to provide retirement plans to their employees.