§ 1304 — Duties of the board

New York § 1304

• Jurisdiction: New York
• Law GBS: General Business
• Art. 43: New York State Secure Choice Savings Program

Text

§ 1304. Duties of the board. In addition to the other duties and\nresponsibilities stated in this article, the board shall, itself or\nthrough the use of appropriate financial organizations as managers:\n 1. Cause the program to be designed, established and operated in a\nmanner that:\n (a) accords with best practices for retirement savings vehicles;\n (b) maximizes participation, savings, and sound investment practices\nincluding considering the use of automatic enrollment as allowed under\nfederal law;\n (c) maximizes simplicity, including ease of administration for\nparticipating employers and enrollees;\n (d) provides an efficient product to enrollees by pooling investment\nfunds;\n (e) ensures the portability of benefits; and\n (f) provides for the deaccumulation of enrollee assets in a manner\nthat provides a financial benefit in retirement.\n 2. Explore and establish or authorize investment options, subject to\nthis article, that offer enrollees returns on contributions and the\nconversion of individual retirement savings account balances to secure\nretirement income without incurring debt or liabilities to the state.\n 3. Establish or authorize the process by which interest, investment\nearnings, and investment losses are allocated to individual program\naccounts on a pro rata basis and are computed at the interest rate on\nthe balance of an individual's account.\n 4. Make and enter into contracts necessary for the administration of\nthe program and fund, including, but not limited to, retaining and\ncontracting with investment managers, financial organizations, other\nfinancial and service providers, consultants, actuaries, counsel,\nauditors, third-party administrators, and other professionals as\nnecessary.\n 5. Conduct a periodic review of the performance of any financial\norganizations, including, but not limited to, a review of returns, fees,\nand customer service. A copy of reviews shall be posted to the program's\nInternet website.\n 6. Cause moneys in the program to be held and invested as pooled\ninvestments or otherwise, with a view to achieving cost savings through\nefficiencies and economies of scale.\n 7. Evaluate and establish or authorize the process for:\n (a) an employee to contribute a portion of his or her wages to the\nprogram via payroll deduction; and\n (b) the enrollment of participating employers in the program.\n 7-a. Evaluate and establish or authorize a process by which an\nindividual or an employee of a nonparticipating employer may enroll in,\nmake contributions to and otherwise participate in the program.\n 8. The board may contract with financial organizations and third-party\nadministrators with the capability to receive and process employee\ninformation and contributions for payroll deduction IRA or similar\narrangements.\n 9. Evaluate and establish or authorize the process for enrollment\nincluding the process by which an employee may opt not to participate in\nthe program, select a contribution level, select an investment option,\nand terminate participation in the program.\n 10. Evaluate, or cause to be evaluated, the need for, and procure as\nneeded, insurance against any and all loss in connection with the\nproperty, assets, or activities of the program, and indemnify as needed\neach member of the board from personal loss or liability resulting from\na member's action or inaction as a member of the board.\n 11. Make provisions for the payment of administrative costs and\nexpenses for the creation, management, and operation of the program.\nSubject to appropriation, the state may pay administrative costs\nassociated with the creation and management of the program until\nsufficient assets are available in the program for that purpose.\nThereafter, all administrative costs of the program, including repayment\nof any start-up funds provided by the state, shall be paid only out of\nmoneys on deposit therein. However, private funds or federal funding\nreceived in order to implement the program until it is self-sustaining\nshall not be repaid unless those funds were offered contingent upon the\npromise of such repayment. The board shall keep its annual\nadministrative expenses as low as possible.\n 12. Allocate administrative fees to individual retirement accounts in\nthe program on a pro rata basis.\n 13. Set or authorize minimum and maximum contribution levels in\naccordance with limits established for IRAs by the Internal Revenue\nCode.\n 14. Facilitate education and outreach to employers and employees.\n 15. Facilitate compliance by the program with all applicable\nrequirements for the program under the Internal Revenue Code, including\ntax qualification requirements or any other applicable legal, financial\nreporting and accounting requirements.\n 16. Carry out the duties and obligations of the program in an\neffective, efficient, and low-cost manner.\n 17. Exercise any and all other powers reasonably necessary for the\neffectuation of the purposes, objectives, and provisions of this\narticle.\n 18. Determine or authorize withdrawal provisions, such as economic\nhardships, portability and leakage.\n 19. Determine employee rights and enforcement of penalties.\n 20. Delegate such authority and responsibility for the development and\nimplementation of the program to the department of taxation and finance\nas the board deems proper.\n