Bill > S4564

This bill adjusts the New Jersey Secure Choice Savings Program by lowering the employee threshold for mandatory participation from 25 employees to just one employee. Currently, businesses with 25 or more employees in New Jersey are required to establish a payroll deposit retirement savings arrangement, but under this new legislation, any employer with at least one employee must participate. The bill removes the previous definition of "small employer" and modifies language throughout the law to reflect this change. Importantly, the program allows employees to automatically contribute to an Individual Retirement Account (IRA) through payroll deductions, with a default contribution rate of 3% if employees do not actively choose a different amount. Employees can opt out of the program and have flexibility to adjust their contribution levels and investment options. The bill maintains employers' existing option to set up alternative retirement plans instead of using this state-sponsored program. The implementation of the program will occur in two phases, starting with larger employers and gradually expanding to smaller businesses, with a total implementation timeline of up to 36 months from the act's effective date.

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https://www.njleg.state.nj.us/bill-search/2024/S4564