Committee advances bill to enable more workers to participate in NJ retirement savings program
Haider, McCoy, and Kane bill would adjust qualification threshold for the program, known as Retire Ready NJ
NEW JERSEY — Legislation that would make more employees eligible to participate in New Jersey’s Secure Choice Savings Program, more commonly known as Retire Ready NJ, cleared the Assembly State and Local Government Committee last Thursday. Assemblywomen Shama Haider, Tennille McCoy, and Melinda Kane sponsored Bill A5358.
Retire Ready NJ is a state-sponsored retirement program intended to help private sector employees save for their retirement. The plan allows employees to put away money for the future through automatic paycheck deductions into a Roth IRA. The program was launched last year.
“Because of this bill, more New Jersey residents would have access to retirement savings options,” said Haider (D-Bergen). “Financial stability is key to a retiree living comfortably in the later years and eligibility for Retire Ready NJ would be beneficial to New Jerseyans as they plan for retirement.”
Currently, businesses with at least 25 employees that do not offer retirement programs and have been active for at least two years must automatically enroll their workers through Retire Ready NJ. Bill A5358 would lower that threshold for required participation to include businesses that have one or more employees. Employers are required to offer open enrollment at least once a year.
“Retirement should be a time to relax and unwind, but when your assets aren’t organized and you lack savings to support yourself and your essential needs, it can become stressful,” said McCoy (D-Mercer and Middlesex). “This bill aims to ensure that New Jersey residents are in the best possible position to enjoy their post-career years.”
“I am proud of our efforts to make sure that our constituents are able to save and put money aside for their future,” said Kane (D-Burlington and Camden). “The bill would also provide enrollees with a number of retirement options to choose from, allowing them to decide what is best for them.”
Businesses that offer the retirement programs that include the following would be exempt from having to offer Retire Ready NJ: a defined benefit plan; a 401(k) or 403(b) plan; a simplified employee pension (SEP) plan; and a savings incentive match plan for employees (SIMPLE) plan.
