The New York State Senate passed a bill Monday to create a mandatory automatic-IRA program for private-sector companies that don't offer a retirement plan.
The bill, which passed by a 44-19 vote, ensures that employees are automatically enrolled into the Secure Choice Savings Program. Employees who don't want to participate in the program would have to opt out.
A memo attached to the bill, which the State Assembly had passed by a vote of 125-22 on May 11, cited a 2012 study from Aon finding "that firms that have adopted automatic enrollment have savings plan participation rates of approximately 83%, a full 18% points higher than in firms that have not adopted automatic enrollment."
The New York State Secure Choice Savings Program has been voluntary since its creation in 2018 for New Yorkers without access to an employer-provided retirement plan.
Officials in Gov. Andrew Cuomo's office could not be immediately reached about whether Mr. Cuomo intends to sign the bill.