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.

Furthermore, the bill designates that if an automatic enrollment arrangement is in place, the named fiduciary of the plan must select a default investment option for the employees' deferred salaries unless the employees make an affirmative investment choice. This legislation aims to enhance retirement savings for public employees by simplifying the enrollment process and ensuring that employees are automatically enrolled in a plan that allows them to save for retirement while providing them with the flexibility to opt out or modify their contributions.

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