New Jersey

New Jersey

Legislative Summary:

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.

Program Description:

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.

Affected Employers:

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.

General Requirement:

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.

Launch Status:

March 28, 2022

Full Implementation:

December 28, 2022

Compliance Deadline:

December 28, 2022

Non-Compliance Penalties:

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

Employer Costs:


Employee Costs:

0.75% of account balance, during the first 3 years following implementation; 0.60% of account balance thereafter.


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.

Program Website:

New Jersey Secure Choice Savings Program