2023 New York Laws › GBS - General Business › Article 43 - New York State Secure Choice Savings Program › 1304 - Duties of the Board.

§  1304.  Duties  of  the  board.  In addition to the other duties and
responsibilities stated in this article,  the  board  shall,  itself  or
through the use of appropriate financial organizations as managers:
1.  Cause  the  program  to be designed, established and operated in a
manner that:
(a) accords with best practices for retirement savings vehicles;
(b) maximizes participation, savings, and sound  investment  practices
including  considering  the use of automatic enrollment as allowed under
federal law;
(c)  maximizes  simplicity,  including  ease  of  administration   for
participating employers and enrollees;
(d)  provides  an efficient product to enrollees by pooling investment
funds;
(e) ensures the portability of benefits; and
(f) provides for the deaccumulation of enrollee  assets  in  a  manner
that provides a financial benefit in retirement.
2.  Explore  and establish or authorize investment options, subject to
this article, that offer enrollees  returns  on  contributions  and  the
conversion  of  individual retirement savings account balances to secure
retirement income without incurring debt or liabilities to the state.
3. Establish or authorize the process by  which  interest,  investment
earnings,  and  investment  losses  are  allocated to individual program
accounts on a pro rata basis and are computed at the  interest  rate  on
the balance of an individual's account.
4.  Make  and enter into contracts necessary for the administration of
the program and fund, including,  but  not  limited  to,  retaining  and
contracting  with  investment  managers,  financial organizations, other
financial  and  service  providers,  consultants,  actuaries,   counsel,
auditors,   third-party   administrators,  and  other  professionals  as
necessary.
5. Conduct a periodic review  of  the  performance  of  any  financial
organizations, including, but not limited to, a review of returns, fees,
and customer service. A copy of reviews shall be posted to the program's
Internet website.
6.  Cause  moneys  in  the  program  to be held and invested as pooled
investments or otherwise, with a view to achieving cost savings  through
efficiencies and economies of scale.
7. Evaluate and establish or authorize the process for:
(a)  an  employee  to  contribute a portion of his or her wages to the
program via payroll deduction; and
(b) the enrollment of participating employers in the program.
7-a. Evaluate and  establish  or  authorize  a  process  by  which  an
individual  or an employee of a nonparticipating employer may enroll in,
make contributions to and otherwise participate in the program.
8. The board may contract with financial organizations and third-party
administrators with the  capability  to  receive  and  process  employee
information  and  contributions  for  payroll  deduction  IRA or similar
arrangements.
9. Evaluate and establish or  authorize  the  process  for  enrollment
including the process by which an employee may opt not to participate in
the  program,  select a contribution level, select an investment option,
and terminate participation in the program.
10. Evaluate, or cause to be evaluated, the need for, and  procure  as
needed,  insurance  against  any  and  all  loss  in connection with the
property, assets, or activities of the program, and indemnify as  needed
each  member of the board from personal loss or liability resulting from
a member's action or inaction as a member of the board.
11. Make provisions  for  the  payment  of  administrative  costs  and
expenses  for  the  creation,  management, and operation of the program.
Subject  to  appropriation,  the  state  may  pay  administrative  costs
associated  with  the  creation  and  management  of  the  program until
sufficient  assets  are  available  in  the  program  for  that purpose.
Thereafter, all administrative costs of the program, including repayment
of any start-up funds provided by the state, shall be paid only  out  of
moneys  on  deposit  therein.  However, private funds or federal funding
received in order to implement the program until it  is  self-sustaining
shall  not be repaid unless those funds were offered contingent upon the
promise  of  such  repayment.  The   board   shall   keep   its   annual
administrative expenses as low as possible.
12.  Allocate administrative fees to individual retirement accounts in
the program on a pro rata basis.
13. Set or  authorize  minimum  and  maximum  contribution  levels  in
accordance  with  limits  established  for  IRAs by the Internal Revenue
Code.
14. Facilitate education and outreach to employers and employees.
15.  Facilitate  compliance  by  the  program  with   all   applicable
requirements  for the program under the Internal Revenue Code, including
tax qualification requirements or any other applicable legal,  financial
reporting and accounting requirements.
16.  Carry  out  the  duties  and  obligations  of  the  program in an
effective, efficient, and low-cost manner.
17. Exercise any and all other powers  reasonably  necessary  for  the
effectuation  of  the  purposes,  objectives,  and  provisions  of  this
article.
18. Determine or authorize withdrawal  provisions,  such  as  economic
hardships, portability and leakage.
19. Determine employee rights and enforcement of penalties.
20. Delegate such authority and responsibility for the development and
implementation  of the program to the department of taxation and finance
as the board deems proper.