Sparta, NJT: 973.729.1880F: 973.729.1224LCRLAW.COM


New Jersey Mandates Automatic Retirement Savings Program

New Jersey Mandates Automatic Retirement Savings Program

On March 28, Governor Murphy signed Bill A4134 into law and established the New Jersey Secure Choice Savings Program (the “Savings Program”), which is funded through automatic payroll deductions. The Savings Program will be a state-administered Individual Retirement Account and required employers will have to automatically enroll their employees. While the law has been enacted, it is not yet effective and we anticipate the Savings Program will take two or more years to set up. However, employers should be aware of this significant change.

Employers who will be required to automatically enroll their employees in the Savings Program include those who:

·         had 25 or more employees in New Jersey in the prior year; and

·         have been in business for at least 2 years; and

·         have not offered a qualified retirement plan (e.g. a 401(k) plan or 403(b) plan).

Both for-profit and non-profit employers are subject to the new law; however, public employers are not required to participate in the Savings Program. 

Eligible employees must be automatically enrolled in the Savings Program at a default contribution rate of 3%. Employees can select a different contribution level or opt out. Employers covered by the legislation who fail to enroll their employees in accordance with the new law will be subject to written warnings and the imposition of various fines for non-compliance.

The Savings Program will be managed by the New Jersey Secure Choice Savings Board (the “Board”), which has yet to be formed.  We will keep you updated as the Savings Program develops.

If you have any questions or concerns regarding the New Jersey Secure Choice Savings Program, please do not hesitate to reach out to the Employment and Labor Practice Group at Laddey, Clark & Ryan, LLP: Thomas N. Ryan Esq. (, Ursula H. Leo, Esq. (, Jessica A. Jansyn, Esq. (, or Nicole C. Tracy, Esq. ( Our attorneys can also be reached by phone at (973) 729-1880.