This bill allows the State, municipalities, and counties in New Jersey to implement automatic enrollment for their employees in deferred compensation plans. It introduces provisions that enable employers to defer and deduct a specified percentage from an employee's salary unless the employee opts out or chooses a different percentage. The bill mandates that for employees hired by the State on or after the first January following the bill's enactment, automatic enrollment will be compulsory, while municipalities can choose whether to adopt this arrangement. Additionally, the bill stipulates that employees must be informed and given a reasonable opportunity to adjust their deferral percentages.

The legislation also requires that if a deferred compensation plan includes an automatic enrollment feature, the named fiduciary must designate a default investment for the deferred salaries in the absence of an affirmative investment choice from the employee. This ensures that employees' deferred funds are managed appropriately while providing them with options to customize their participation in the plan. Overall, the bill aims to enhance retirement savings for public employees by streamlining the enrollment process in deferred compensation plans.

Statutes affected:
Introduced: 43:15B-1, 52:18A-165