New Jersey Secure Choice Savings Program

Year enacted

2019

Status

Not yet active

Initial implementation date was March 28, 2021, but the program was allowed up to a one-year extension. Anticipated implementation deadline was March 28, 2022, but the program's website notes that it's not yet operational. Under the statute, the board shall implement the program in two phases based on the size of the employers participating, as measured by the number of employees per employer, with the program implemented first for larger employers.

Employers affected

Mandatory for employers with 25 or more employees that don’t provide their own plan, with a two-year deferral for new businesses

Type of account

Roth or traditional IRA authorized

Automatic enrollment

Yes

Auto-escalation

No

Default contribution rate

3%

Employer contributions

Not permitted

Investment options

The program’s board may establish the following as investment options: a capital preservation fund, a life cycle fund, and other investment funds deemed appropriate by the program’s board. If the board elects to establish a capital preservation fund, the board may provide that the first $1,000 in contributions be deposited into the capital preservation fund and may provide for an account revocation period during which a participant who chooses to end participation in the program may withdraw the deposited amounts from the capital preservation fund without penalty.

Default—The board shall determine the investment option to serve as the default for participants who fail to elect an investment option.

Fees

None for employers. Employee fees are capped at 0.75% of the fund’s total balance on an annual basis for the first three years of the program, and after that time, capped at 0.6% of the fund’s total balance on an annual basis.

Website

Secure Choice Savings Program