§ 20-1405 Powers of the retirement savings board.
AC § 20-1405
Subject to applicable federal and state law, including its duties as a fiduciary, the board may: a. After consultation with the comptroller, determine the date upon which the program established pursuant to this chapter shall become operational and begin accepting contributions from participants, provided that such date shall be no later than two calendar years after the effective date of this chapter, unless the board determines that a further delay is reasonably necessary to ensure the effective operation of the program. The board shall provide notice of such determination to delay the program to the mayor, comptroller, and speaker no later than 90 days prior to two calendar years after the effective date of this chapter and shall indicate what conditions contribute to such determination and an approximation of the additional time required to ensure effective operation of the program, provided, however, that such time shall not be longer than six calendar months or an additional notice shall be required prior to the end of such time indicating the present circumstances and providing an updated date for the program to become operational. b. Delay implementation of the obligation imposed by subdivision a of section 20-1409 upon a covered employer, provided that: 1. such delay shall not exceed two years from the initial enrollment of covered employees; 2. such delay shall be based upon the practicability of implementation using the following criteria: i. the number of covered employees; ii. the size of the covered employer; or iii. the sector or industry of the covered employer; and 3. the board shall provide to the mayor and speaker and post on its website, the identity of any covered employer for whom implementation is delayed and the length of the delay granted. c. Enter into contracts, agreements, or arrangements with one or more administrators allowing such administrators to perform any functions of the board. Under any such contract, agreement, or arrangement, the board: (i) shall require an administrator to exercise the duties of a fiduciary in the administration of the program established by this chapter, (ii) shall require an administrator to comply with any standards concerning the receipt and safekeeping of such funds as may be issued by the comptroller pursuant to section 20-1406, (iii) shall require an administrator to incorporate and offer the investments selected by the comptroller pursuant to section 20-1406, and (iv) may require an administrator to assume legal responsibility and liability pursuant to this chapter for functions to be performed by an administrator. d. Enter into any contracts, agreements, or arrangements with any person deemed qualified by the board and create any written instruments necessary, including, but not limited to, trust agreements, to create IRAs for participants in compliance with the internal revenue code. Under any such contracts, agreements, arrangements, or written instruments, the assets of IRAs established for participants: shall be combined for the purpose of making investments directed by the comptroller pursuant to section 20-1406; shall be managed and administered for the exclusive purposes of providing benefits to participants and defraying reasonable expenses of administering, maintaining, and managing such investments of the program, including, but not limited to, the expenses of the board and the comptroller; shall at all times be preserved, invested, and expended solely for the purposes of the program and no property rights therein shall exist in favor of the city or any participating employer; shall be received and held in compliance with standards concerning the receipt and safekeeping of such assets as may be issued by the comptroller pursuant to section 20-1406; shall not be transferred or used by the city for any purposes other than the purposes of the program or funding the expenses of operating the program; shall not constitute property of the city; and shall not be commingled with city funds, and the city shall have no claim to or against, or interest in, the trust assets. The board and any such person shall be fiduciaries with respect to the IRAs established and maintained under the program to the extent required by applicable law or any such contract, agreement, arrangement, or written instrument. e. Enter into any other contracts, agreements, or arrangements for, and retain or employ, the services of any other person deemed qualified by the board to carry out the purposes of this chapter, subject to the authority of the comptroller pursuant to section 20-1406. f. Allow participants to allocate assets of their IRAs among investment options and designate an investment option as a default investment for the IRAs of covered employees who do not make an investment choice. g. Establish a default type of IRA, Roth or traditional, for covered employees and identify the types of IRA that any other eligible individual who enrolls in the program will be permitted to select. h. Maintain fees and costs to participants at a level determined by the board to be reasonable, consistent with the purpose of this chapter. i. Educate and provide outreach to covered employers, other eligible employers, covered employees, and other eligible individuals. j. Seek loans, grants, or other contributions to offset or finance fees or costs for the administration of the retirement savings program on an ongoing basis from financial firms, institutions, or government entities. k. Implement escalation or reduction of participants' default contribution rates, where applicable, from time to time, provided that the board shall notify participants at least 45 days in advance of such escalation or reduction. If such escalation or reduction is adopted, the board shall permit affected participants to opt out of such escalation or reduction. l. Establish a process by which a covered employee or other eligible individual may voluntarily enroll in and contribute to the program. m. Establish a process by which an employer that is not a covered employer may voluntarily offer the program to its employees and allow those employees to enroll in and contribute to the program. n. Establish a process by which a covered employer may seek a hardship exemption from this chapter, which may be obtained by demonstrating to the board's satisfaction that participation would be unduly burdensome for the employer. o. Establish a process by which participating employers who cease to be covered employers, for example, by offering the New York State Secure Choice Program to their employees, may discontinue their participation in the program. p. To the extent consistent with law and the authority of the comptroller under section 20-1406, establish and maintain the program by: contracting, partnering, or forming a consortium with one or more states, local governments, or organizations of governmental entities, in which certain aspects of each such entity's program are combined for administrative convenience and efficiency, provided that in any such case, the auto-IRA program used, the joint program or the consortium otherwise satisfies the requirements of this chapter. q. Establish procedures and requirements, which may apply to participating employers and any other employer as defined in subdivision 3 of section 190 of the labor law, to enable the board, or the enforcement agency designated pursuant to section 20-1414, to ascertain whether such an employer is subject to the provisions of this chapter. r. Approve an investment strategy and policy, which shall define one or more investment options that participants may choose to invest in, and any modifications to such strategy and policy pursuant to subdivision a of section 20-1406. s. Take all other actions consistent with this chapter that are necessary and appropriate to carry out its purposes. (L.L. 2021/052, 5/11/2021, eff. 8/9/2021)
