In June 2018, Assembly bill 4134 was introduced by the Labor Committee and passed the General Assembly in mid-December 2018 and the Senate in February 2019. Originally slated for implementation date in March 2021, it was delayed until 2022 due to COVID.
The New Jersey Secure Choice Savings Program is administered by the New Jersey Secure Choice Savings Board, to provide a state-facilitated payroll-deduction individual retirement savings plan for private sector employees who do not have access to employer-sponsored retirement savings plans.
Employers with 25+ employees that have been in business for at least two years, and have not offered a retirement plan. Self-employed individuals or independent contractors may electively participate in the program, but are not required to do so.
Automatic enroll employees at 5% deferral with annual increases of 1% (up to a maximum of 10%) of the enrollee’s wages.
Unique Requirement: Employees covered by a leasing arrangement (PEO) are considered employees of the service provider for purposes of the law.
|December 28, 2023||First Year - $100 per employee|
|December 28, 2024||2-3 Years - $250 per employee|
|December 28, 2025||3+ Years - $500 per employee|
The program is anticipated to offer a suite of target date funds (TDFs), as the default investment option, and additional investment options to be determined by the Board.