Enroll in New Jersey Secure Choice Savings Program by Year End

Enroll in New Jersey Secure Choice Savings Program by Year End

Applies to for profit and not-for-profit employers employing 25 or more employees during past calendar year and no qualified retirement plan.

In 2019, Governor Murphy signed legislation that requires employers to automatically enroll their employees in the New Jersey Secure Choice Savings Program (hereinafter Program). The law took effect March 28, 2021 and requires employers to either sponsor a 401(k) plan or adopt the state-run retirement plan by the end of 2021.

The Program must be offered to any individual who is 18 years of age or older, lives and is employed by an employer in New Jersey, and whose wages are subject to withholding under New Jersey income tax act.

Unless an employee opts-out, an employee will be automatically enrolled and contribute 3% of his/her pre-tax income into the Program through a payroll deduction. The contributions to Program are employee funded.

An employer must provide the enrollment packet to new employees 30 days after date of hire and hold open enrollment every two years. An employer that fails to comply with the law could be subject to a fee of $100 up to $500 (increases each year for non-compliance) per eligible employee.


The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.

Enroll in New Jersey Secure Choice Savings Program by Year Endhttps://www.cbiz.com/Portals/0/Images/New Jersey Retirement.jpg?ver=7rPPS5QpH44%3dIn 2019, Governor Murphy signed legislation that requires employers to automatically enroll their employees in the New Jersey Secure Choice Savings Program (hereinafter Program). The law took effect March 28, 2021 and requires employers to either sponsor a 401(k) plan or adopt the state-run retirement plan by the end of 2021.2021-11-10T20:00:00-05:00

In 2019, Governor Murphy signed legislation that requires employers to automatically enroll their employees in the New Jersey Secure Choice Savings Program (hereinafter Program). The law took effect March 28, 2021 and requires employers to either sponsor a 401(k) plan or adopt the state-run retirement plan by the end of 2021.

Regulatory, Compliance, & LegislativeEmployee Benefits ComplianceNo