WASHINGTON--(BUSINESS WIRE)--The National Conference on Public Employee Retirement Systems (NCPERS) commended New York City Mayor Bill de Blasio for his proposal to create a retirement savings program for private-sector workers.
“This forward-looking move by Mayor de Blasio is a positive step toward providing a secure retirement for New York City residents,” said Hank Kim, executive director and counsel of the National Conference on Public Employee Retirement System. “In proposing to adopt a version of the SecureChoice auto-IRA program that NCPERS has championed for years, the mayor is demonstrating the power of this idea to improve workers’ lives.” The mayor made the announcement in the State of the City address that he delivered January 10.
Kim noted that a 2016 study commissioned by New York City comptroller’s office found that 1.5 million city residents, or 58 percent of the city’s private-sector workforce, were not covered by workplace retirement programs.
Secure Choice auto-IRA programs like the one envisioned in New York City use the most effective savings method—payroll deduction—to help workers build a retirement nest egg, while states provide expertise and savings mechanisms in the form of pooled investment vehicles. The mayor’s office said that under the city’s proposal, a New Yorker who makes the city's median salary of $50,850 per year and invests 5 percent annually while earning an average net return of 4 percent would save $146,274 after 30 years.
"If you’ve spent your lifetime working, you’ve already paid your dues," de Blasio said in his State of the City address. "Your retirement should be something you look forward to."
The City Council would need to consider and approve the mayor’s plan before it can become law. Some 40 states and localities are considering or have adopted similar programs.
The National Conference on Public Employee Retirement Systems (NCPERS) is the largest trade association for public sector pension funds, representing more than 500 funds throughout the United States and Canada. It is a unique non-profit network of public trustees, administrators, public officials and investment professionals who collectively manage more than $3.5 trillion in pension assets. Founded in 1941, NCPERS is the principal trade association working to promote and protect pensions by focusing on advocacy, research and education for the benefit of public sector pension stakeholders.