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BLOG / 07.13.26 /Jenna R. Tammaro

New York Secure Choice Savings Program: What Co-Ops, Condominiums, and Other Employers Need to Know

New York employers, including residential cooperative corporations, may now be subject to the requirements of the New York Secure Choice Savings Program (the “Program”), a state-run retirement savings initiative established under Article 43 of the New York General Business Law.

The Program requires certain employers that do not already sponsor a qualified retirement plan to facilitate employee participation in a state-administered Roth IRA through payroll deductions.

Which Employers Are Covered?

The law applies to employers that:

• have been in operation for at least two years; and
• employed at least 10 employees in New York State throughout calendar year 2025.

Employers that already offer a qualified retirement plan, such as a 401(k) plan or 403(b) plan, are exempt from participation in the Program. However, exempt employers are still required to provide information regarding their existing retirement plan to the Program administrators.

Because many cooperative housing corporations employ building staff, supers, porters, doormen, or administrative personnel, businesses with 10 or more employees may fall within the scope of the statute.

Compliance Deadlines

The State has implemented staggered compliance deadlines based on employer size. Currently, employers with 15 to 29 employees were required to comply by May 15, 2026. Additional deadlines may apply depending on workforce size.

What Does Participation Require?

Covered employers that do not sponsor a retirement plan must:

• register with the New York Secure Choice Savings Program;
• facilitate payroll deductions into employee Roth IRAs;
• distribute required employee disclosures and informational materials; and
• maintain ongoing payroll deduction compliance.

Importantly, employers are not responsible for administering investments or providing financial advice to employees.

Employer Liability Protections

Section 1313 of the General Business Law expressly limits employer liability under the Program. Specifically:

• employers are not liable for an employee’s decision to participate in or opt out of the Program;
• employers are not fiduciaries of the Program;
• employers are not responsible for the administration, investment, or performance of Program funds; and
• employers are not liable for investment returns, Program design, or benefits paid to participants.

These provisions are intended to make employer participation largely administrative in nature.

Potential Penalties for Noncompliance

There remains some uncertainty regarding enforcement and penalties under the Program. Certain legal commentary has noted that the State had not yet fully clarified the penalty structure during the Program rollout. However, New York Tax Law § 685(h) appears to authorize penalties where an employer fails to comply after receiving notice from the State.

Under that provision, employers generally receive a 20-day cure period following notice of noncompliance. If the violation is not cured, penalties may include:

• $500 for the first month of noncompliance; and
• an additional $500 for each subsequent month (or partial month) the violation continues.

Although Article 43 itself does not set forth a detailed penalty schedule, employers should assume that enforcement mechanisms may be implemented and should take steps toward compliance promptly.

Required Employee Disclosures

Participating employers must provide employee informational materials for at least one month before facilitating employee participation in the Program. New employees must also receive the required materials upon hiring.

Recommended Next Steps for Co-Ops, Condominiums, and Employers

Boards and managing agents should consider taking the following steps:

1. Determine whether the co-op, condominium, or employer already sponsors a qualified retirement plan or whether it will participate in the State Program.
2. Evaluate whether adopting a private retirement plan—such as a SIMPLE IRA or payroll provider-sponsored 401(k)—may be preferable to participation in the State Program.
3. If participating in the Program, register through the official Program website:New York Secure Choice Savings Program
4. Coordinate with payroll providers to establish payroll deduction procedures.
5. Prepare and distribute the required employee notices and disclosures.

While additional ongoing compliance obligations may apply after registration, employers should prioritize evaluating coverage and taking initial registration and payroll implementation steps now.

For questions regarding the New York Secure Choice Savings Program, including whether your co-op or condominium is covered, please contact our office. We are available to assist boards in navigating the Program’s requirements and minimizing potential compliance risks.