New Jersey Secure Choice, the state-run program that is to provide retirement plan coverage for employees whose employers do not offer a retirement plan, is not yet operational. So says the website of the Secure Choice Savings Board, last updated on April 7.
This marks continued delay in its coming into operation. The New Jersey Secure Choice Act, which Gov. Phil Murphy (D) signed into law on March 28, 2019, was to be implemented two years after the enactment date—March 28, 2021—and enrollment of employees was to take place by then as well.
According to Withum Principal Lynn Mucenski-Keck, the date for implementation was delayed by one year to March 28, 2022 due the pandemic. That date has come and gone. In fact, the Secure Choice Savings Board itself did not even hold its first organizational meeting until Dec. 15, 2021.
At the Board’s Jan. 21, 2022 meeting, in response to a question, Assistant Treasurer of the State of New Jersey Andrea Spalla explained that “the Board is aiming to implement the program as close to March of 2022 as possible, but the Board should not, and does not intend to, cut corners in providing such a new and robust program for the citizens of New Jersey.” The Board’s website does not specify what factors are behind the delay and contains no information about when the program is to become operational. The New Jersey Secure Choice Act requires that the Board post a notice on its website that says when the program is to become operational.
About New Jersey Secure Choice
New Jersey Secure Choice, which entails automatic enrollment payroll deductions into IRAs, applies to private sector employers with 25 or more employees that do not offer a plan. It is optional for employers with fewer than 25 employees; they may, but are not required to, provide payroll deduction retirement savings arrangements for each employee who elects to participate in the program. Employees may opt out of the program.
The Secure Choice Savings Board is required to roll the program out in two phases, under the New Jersey Secure Choice Act. The law further says that the rollout is to be based on the size of an employer's workforce, with larger employers to implement first.
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