Vote Smart's Synopsis:

Vote to pass a bill that expands the RetireReady NJ program and reduces the threshold for required participation in the New Jersey Secure Choice Savings Program, branded RetireReady NJ, from businesses that have 25 or more employees to businesses that have one or more employees.

Highlights:

● Expands coverage by defining an “employer” as any business with at least one employee, and requiring participation in the program unless employers already offered another qualifying retirement plan (Sec. 2).

● Requires all covered employers to set up a payroll deposit retirement plan and automatically enroll eligible employees within nine months of the program’s launch, unless employees opt out (Sec. 14).

● Establishes starting contribution levels at 3% of wages and increases by 1% annually up to a maximum of 10%, unless the employee chooses another specified rate (Sec. 14).

● Establishes penalties for noncompliant employers. These penalties include warnings or fines up to $500 per employee per year or employers who fail to submit collected funds face penalties of $2,500–$5,000 (Sec. 19).

● Authorizes state departments to share data with other state agencies for enforcement and outreach purposes (Sec. 19).

● Authorizes employees to adjust their contribution levels or opt out at any time, with the ability to continue and retain their accounts if switching employers (Sec. 14).

● Establishes a cap on administrative fees to $26 per account plus 0.25% of account balance annually (Sec. 8).

Full Bill Text