Breadth of State Program Coverage Expands

State-run programs spanning the breadth of the country are expanding the scope of the private-sector employees and workers they cover.  

Freelancers Covered by New York Secure Choice

The scope of New York Secure Choice, the program through which the Empire State provides coverage to private-sector employees whose employers do not, has been expanded to include single proprietors. 

New York Gov. Kathy Holchul (D) signed S 2399 into law on Jan. 26, 2024. Sen. Andrew Gounard (D-Brooklyn), Chairman of the Senate Committee on Budget and Revenue, introduced the bill one year earlier; the Committee on Consumer Protection discharged it on June 1, 2023 and the Senate passed it five days later, and on June 8 the New York Assembly followed suit. It was not delivered to the governor until Dec. 27; she signed it one month later. 

It’s not the first time the program has been expanded. The program was established in 2015 by the New York State Secure Choice Savings Program Act and went into operation in 2018. In October 2021, Hochul signed into law a measure that made it mandatory for employers that do not offer a retirement plan and employ 10 or more employees to participate. 

The latest expansion adds language to the law establishing the program that now says “participating individual" means any individual who is 18 years of age or older and has New York taxable income within a calendar year, who enrolls in the program independent of an employment relationship with an eligible employer, maintains an account in the program, and is not a participating employee. It also changes the wording referring to “participating employee” to “participating individual.” 

Before the program begins enrolling participating individuals, the New York Secure Choice Savings Program Board is to design and make publicly available informational materials which is to include:

• background information on the program;
• how to participate as a participating individual;
• information on the benefits and risks associated with making contributions to the program;
• the process for making contributions; 
• the contribution levels they may contribute;
• the process for withdrawal of retirement savings; and 
• the process for selecting beneficiaries.

Effective Date. The measure went into effect immediately upon enactment, so freelancers can participate now. 

OregonSaves Puts $5 Million into Coverage of Childcare Providers

OregonSaves, the first state-run program to provide retirement plan coverage to employees whose private-sector employers do not, is devoting $5 million to coverage for childcare providers. The Oregon Retirement Savings Board and State Treasurer Tobias Read made the announcement on Feb. 12. 
 
In Fall 2023, childcare workers were invited to participate in OregonSaves; they could set up an account in OregonSaves and receive an equal share of the $5 million  split between eligible certified family childcare providers. The final distribution of the funds will be made in March. 

“This strategic investment in the financial future of childcare workers reflects Oregon's commitment to fostering economic security for all of its residents, a commitment shared by Oregon State Treasury and OregonSaves,” said State Treasurer Tobias Read in a press release. 

Funding the Expansion. The funds come from those allocated to the state through the American Rescue Plan Act (ARPA).
Oregon’s Department of Early Learning and Care (DELC), which licenses childcare providers, is allocating the $5 million to fund the OregonSaves retirement accounts of more than 900 Oregon childcare service providers. The active involvement of DELC, as well as American Federation of State, County and Municipal Employees (AFSCME), was of key importance to this expansion of coverage. 

The funding was secured via negotiations by AFSCME and their Child Care Providers Together (CCPT) group. A joint labor-management committee determined that OregonSaves was the most qualified retirement plan in an open market and that it should be the preferred program provider for this initiative. 

The Bigger Picture. “We are proud to have played a key role in bringing this retirement benefit to Oregon’s critical childcare service providers, ensuring a strong start on their path to retirement security,” said Read.  

This expansion follows that of late 2020, when personal support workers had been added to those covered by OregonSaves.