Under the name “RetireReady NJ”, the New Jersey Secure Choice Retirement Savings Program was enacted in 2019. The purpose of the program is to provide a Roth Individual Retirement Account with post tax payroll deductions, to workers in New Jersey who are not otherwise covered by a qualified retirement plan. The program also offers traditional IRAs for those not eligible to contribute to a Roth IRA. Due to the pandemic, the launch date was delayed and the program officially launched and began registration on June 30, 2024.
Private sector employers in New Jersey that have been in business for at minimum 2 years, and employ 25 or more workers are required to register and offer this payroll deduction savings program or certify an exemption from this requirement. Employers who neglect to provide the program or certify exemption, will face civil penalties from the New Jersey Department of Labor.
Employers can certify an exemption if they offer a qualified plan or have fewer than 25 employees in the preceding calendar year. If not certifying as exempt, covered employers with 40 or more employees must complete implementation of the program by September 15, 2024 and employers with between 25 and 39 employees must complete implementation of the program by November 15, 2024.
Both full time and part time employees who are at least 18 years of age, are eligible for the program. To be eligible, individuals must live in New Jersey or be employed in New Jersey where their wages are subject to the state income tax.
When notifying employees about the program, the information is to be available in both English and Spanish. Current employees are to be auto-enrolled and be provided the option to opt out within 30 days of their enrollment. New hires and any new 18-year-olds will have up to 90 days to opt out of the program. Employers are not permitted to make contributions to employee accounts.
The Secure Choice Savings Board has general and fiduciary responsibilities over the program. The board will handle any employee inquiries, account maintenance, withdrawals and manage investment options.