Skip to main content
MENU
Subscribe
  • Subscribe
  • Account
  • LOGIN
  • Topics
    • Alternatives
    • Consultants
    • Coronavirus
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Opinion
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Russia-Ukraine War
    • SECURE Act 2.0
    • Special Reports
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • Climate Change: The Inescapable Opportunity
    • Impact Investing
    • 2022 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2022 Defined Contribution East Conference
    • 2022 DC Investment Lineup Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Performance Data
    • P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
    • Future of Investments Research Series
    • Charts & Infographics
    • Polls
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2022 Retirement Income Conference
    • 2022 Managing Pension Risk & Liabilities
    • 2022 WorldPensionSummit
Breadcrumb
  1. Home
  2. DEFINED CONTRIBUTION
January 11, 2019 12:00 AM

New York mayor proposes city-managed IRA for private-sector workers

Robert Steyer
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Bloomberg
    New York City Mayor Bill de Blasio

    New York City Mayor Bill de Blasio has proposed creating a city-managed individual retirement account program that would aid private-sector workers whose employers don't offer retirement savings plans.

    "Nearly half of the workforce in this city, 2 million of us, don't have employer-sponsored retirement plans," Mr. de Blasio said Thursday during his annual state of the city speech. "So we're going to establish retirement plans for any worker who doesn't have one."

    The proposal, which must be approved as legislation by the City Council, is similar to so-called secure choice programs now being offered or being developed by several states, including Oregon and California. If legislation is approved this year, the program could take effect in 2021, according to a fact sheet issued by the mayor's office. The mayor's proposal says:

    • Employers with at least five employees that don't offer a retirement plan will be required to auto-enroll their employees into the city-sponsored plan with a 5% of salary default contribution.

    • The contribution works as a payroll-deduction into a Roth IRA, and it can be transferred if participants change jobs.

    • Employees can opt-out at any time and can reduce or increase contributions up to the annual Roth IRA maximum, which is $6,000, or $7,000 for people 50 and older, for this year.

    Employers won't contribute to this program, Raul Contreras, a spokesman for Mr. de Blasio, said in an interview. Although the city will pay for start-up costs, the program will be maintained by fees charged to participants' accounts.

    This Retirement Security Fund will be governed by a board of directors, managed by a private third-party administrator and provide low-cost index mutual funds for the investment menu, the fact sheet said.

    Mr. de Blasio's proposal differs from legislation signed into law in April 2018 by Gov. Andrew Cuomo establishing a Secure Choice Savings program for New York state in which participation by both workers and employers is voluntary. Depending on adequate funding, the New York state program is expected to take effect in the spring of 2020.

    Mr. de Blasio's proposal is similar to one he offered in 2016, but he didn't pursue it when President Donald Trump rescinded regulations issued during President Barack Obama's administration that said state- and municipal-run IRA programs would not be subject to the Employee Retirement Income Security Act. Several states have taken steps to account for the loss of the ERISA-exemption rules. There's also legislation in the City Council — introduced in August 2017 and reintroduced in May 2018 — that is similar to Mr. de Blasio's proposal. It contains the auto-enrollment Roth IRA features, the opportunity for employees to opt out and the requirement that employers enroll their workers. This bill covers employers with more than 10 workers and sets the initial default contribution rate at 3% of salary.

    Related Articles
    Seattle mayor proposes secure choice program
    New York state creates voluntary retirement savings program
    Group sues to kill California Secure Choice program
    Illinois governor proposes making Secure Choice retirement program optional for…
    New Jersey lawmakers pass Secure Choice legislation
    Virginia legislator introduces bills to increase retirement savings
    Maryland Small Business Retirement Savings Program seeks executive director
    Recommended for You
    pepsi_cans_shelf_1550-main.jpg
    PepsiCo to add 6% to 8% non-matching contribution for some 401(k) participants
    Malaysian ringgit banknotes
    Malaysia's EPF reports 18% drop in investment income
    ninth-circuit-appeals-courthouse-san-francisco_i.jpg
    Federal courts' rulings differ on how to treat an ERISA arbitration
    An Active Approach to US Mid-Cap Equities for DC Plans
    Sponsored Content: An Active Approach to US Mid-Cap Equities for DC Plans

    Reader Poll

    June 6, 2022
    SEE MORE POLLS >
    Sponsored
    White Papers
    Nearing the finish line: Ideas on end-state investing for corporate DB plans
    The Meaning of "Portfolio Intelligence"
    Credit Indices: Closing the Fixed Income Evolutionary Gap
    Forever in Style: Benchmarking with the Morningstar® Broad Style Indexes℠
    Crossroads: Politics, Inflation, & Bonds
    Is there a mid-cap gap in your DC plan?
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    June 20, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Coronavirus
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Opinion
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Russia-Ukraine War
      • SECURE Act 2.0
      • Special Reports
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • Climate Change: The Inescapable Opportunity
      • Impact Investing
      • 2022 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2022 Defined Contribution East Conference
      • 2022 DC Investment Lineup Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Performance Data
      • P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
      • Future of Investments Research Series
      • Charts & Infographics
      • Polls
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2022 Retirement Income Conference
      • 2022 Managing Pension Risk & Liabilities
      • 2022 WorldPensionSummit