The New Jersey Secure Choice Savings Act, passed in 2019, is now inviting New Jersey employers to join the pilot launch of a state-administered retirement savings option for private-sector workers. Pilot programs are set to begin this Spring, with the full program scheduled to open in Summer 2024. Employers with 25 or more employees who don't already offer a qualified retirement savings plan are required by law to facilitate the program at that time. Once the program opens later this year, you will receive notification from RetireReady NJ prompting your business to register. To get started, you will need your Federal Employer Identification Number (EIN) and the RetireReady NJ Access Code provided in your notification.

Your responsibilities as an employer

Once registered, employers must enroll all eligible employees in the program. RetireReady NJ will handle direct communication with employees to outline their options within the 30-day opt-out or customization window. Employers will then document employees' choices, commence payroll deductions, and provide contribution information and funding for those opting to stay within the program. To maintain compliance, ongoing responsibilities include consistently and timely sending payroll contributions and keeping accurate employee records. This encompasses updating contribution rates as required, incorporating new hires, and correctly marking terminated employees. Affected employers will need to set up procedures to ensure these responsibilities are met.

As an employer, you will not be responsible for:

• Enrolling employees into their RetireReady NJ Roth IRA;
• Answering questions about RetireReady NJ and its investment portfolios or assisting employees in choosing investments;
• Managing RetireReady NJ investment options or processing employee investment change requests;
• Processing distributions from employee investment accounts; or
• Managing changes to employee investment accounts. Employees will handle maintaining their account information and settings if enrolled.

Employers can now apply to participate in the RetireReady NJ pilot here. Be on the lookout for further guidance as the program is set to launch in the summer of 2024 and consult with your accounting and legal professionals to ensure you are in compliance.

For guidance on preparing for this program, reach out to Laura Crowley at lcrowley@citrincooperman.com, Thomas Urban at turban@citrincooperman.com, or your Citrin Cooperman advisor.