In an effort to close the gap in retirement savings across the state, Governor Phil Murphy signed the New Jersey Secure Choice Savings Program Act (Act) in March of 2019. The Act created the Secure Choice Savings Program (Program), designed to provide a path for more private sector employees save for retirement. In short, the Act requires certain employers in the state to establish a payroll deposit retirement savings arrangement that will permit eligible employees to participate in the Program.

Which employers are subject to the Act?

The Act applies to all persons and entities engaged in a business, industry, profession, trade, or other enterprise in New Jersey, whether for profit or not for profit, that:

• have at no time during the previous calendar year employed fewer than 25 employees in the State,

• have been in business at least two years, and

• have not offered a qualified retirement plan.

“Small employers” – persons or entities above that either employed fewer than 25 employees at any one time in the State throughout the previous calendar year, or have been in business less than two years, or both, may voluntarily participate in the Program. To do so, they will need to notify the New Jersey Secure Choice Savings Board (Board) which has been charged with running the Program.

What kind of “qualified retirement plans” will allow an employer to avoid complying with the Act?

Qualified retirement plans include plans qualified under section 401(a), section 401(k),...

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