Establishing a retirement savings program for certain self-employed individuals and employees of private entities.

A Local Law to amend the administrative code of the city of New York, in relation to establishing a retirement savings program for certain self-employed individuals and employees of private entities

40% of New Yorkers near retirement age have less than $10,000 saved for retirement. This bill would thus create a mandatory auto-enrollment payroll deduction IRA program for employees of private sector employers which do not offer a retirement plan and employ five or more employees. The default employee contribution rate would be 5%, which employees can adjust up or down, or opt-out of at any time, up to the annual IRA maximum of $6,000 (or $7,000 if age 50 or above). The plan would be portable so when employees switch jobs they can continue to contribute or roll over their accounts into other retirement savings plans. Employers would not contribute on behalf of employees.