This bill allows state, county, and municipal employers 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 state employees hired 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.

Furthermore, the bill requires that if a deferred compensation plan includes an automatic enrollment arrangement, the named fiduciary must designate a default investment for the deferred salaries in the absence of an affirmative investment choice from the employee. This aims to streamline the process of saving for retirement while ensuring that employees have the option to manage their contributions actively. Overall, the legislation seeks to enhance participation in retirement savings plans among public employees in New Jersey.

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