New NJ Law Require Companies To Offer Retirement Savings Programs

SADDLE BROOK, NJ — Legislation requiring New Jersey companies to make it easier for residents to save for retirement was signed into law Thursday.

The law establishes the New Jersey Secure Choice Savings Program. It requires employers with 25 or more employees to offer retirement savings program where the money is taken directly out of employees' paychecks.

Gov. Phil Murphy signed the legislation in Saddle Brook Thursday morning.

"Saving for retirement is paramount for all employees, but too often, those who work for small businesses don't have a simple way to set aside these savings," Murphy said. "By creating the Secure Choice Savings Program, we are ensuring that every worker in New Jersey will have the opportunity to save for the future."

Participants will invest in a state-administered Individual Retirement Account. Companies with more than 25 employees are automatically enrolled in the program, but have the option to opt out, officials said.

New Jersey Secure Choice Savings Bank will manage the fund.

"Access to retirement savings accounts through an employer is among the best ways to effectively save. The New Jersey Secure Savings Program will allow for private-sector employees to have access to a convenient and efficient way to save for their retirement," said state Senator Joe Lagana, a Democrat from Paramus representing New Jersey's 38th Legislative District. "The savings program will accomplish the goal of helping hardworking New Jerseyans prepare for their future without burdening our businesses."

Email: daniel.hubbard@patch.com