I did look it up and this is NOT a mandatory retirement saving - It is a mandatory setting up of an account and then depositing the money the EMPLOYEE designates to it. Anybody could have set up their own as a Traditional IRA and then make deposit to it - all this NYC legislation does is mandate the employer do everything FOR THEM. - set up the account and then deposit what the employee tells them to deposit out of their pay check into it.
Someday maybe we will see the wisdom in teaching people how to do things for themselves so they can learn and take further action to better themselves instead of mandating that some other entity do it for them; especially employers.
I mean how hard is it to set up a Traditional IRA account for ones self ? How hard is it to manage your own money and deposit some money into this savings on a regular basis?
Especially since much of this can be done with the click of a button on a tech. device.
Really, how much is this teaching people about what they could do for themselves?
Wonder if the employer will also be required to make sure that each of these DEPENDENT employees does their taxes correctly and take advantage of the IRS.gov - Retirement Savings Contributions Credit (Saver’s Credit) In essence, FREE MONEY courtesy of the tax code !
Guess my definition of being an "adult" differs from others - I consider a person's own money similar to children. The responsibilities of a loving parent - one should always know where it is and what it is doing !!! This sort of mandate does nothing to teach a person personal responsibilities - it just does it FOR them.
ASPPSA.org (American Society of Pension Professionals & Actuaries) 05/12/2021 - NYC Mayor Signs Mand...
from the link ~
Under the legislation, the default employee contribution rate will be 5%, which employees could opt out of at any time or adjust down or up to the annual IRA maximum. Savings in the plan will be portable, allowing employees to continue to contribute or roll over their accounts into other retirement savings plans when they switch jobs.
In addition, covered employers are not required to contribute on behalf of employees. However, they will be required to enroll each of their covered employees in the program. They also will be required to remit funds deducted from the earnings of each participant for deposit in the program and to distribute program information to employees.
It's Always Something . . . . Roseanna Roseannadanna