New Jersey Gov. Phil Murphy (D) has signed legislation establishing a state-run retirement savings plan for private-sector employees whose employers do not offer a retirement plan.
Murphy signed the bill establishing the New Jersey Secure Choice Savings Program into law on March 28. The state assembly passed the bill on Feb. 25. Previously it was approved by the state assembly on Dec. 17, 2018, and by the state senate on Feb. 21.
The program, which entails automatic enrollment payroll deductions into IRAs, applies to private sector employers with 25 or more employees that do not offer a plan. It is optional for employers with fewer than 25 employees; they may, but are not required to, provide payroll deduction retirement savings arrangements for each employee who elects to participate in the program. Employees may opt out of the program.
The measure creates the New Jersey Secure Choice Savings Program Fund, which will consist of funds received from enrollees in the program and participating employers, and is separate and apart from all public money or funds of this state. The amounts deposited in the fund shall not be state property. It also creates the New Jersey Secure Choice Savings Board to implement the program and oversee the fund.
For more details, see our previous report on the bill here.