Bloomberg Law for HR Professionals is a complete, one-stop resource, continuously updated, providing HR professionals with fast answers to a wide range of domestic and international human resources...
By Leslie A. Pappas
Jan. 8 — The New Jersey Senate gave final legislative approval to a bill that would require most employers in the state to create a retirement savings program for employees.
The Senate voted 30-6 in favor of the bill (S.B. 2831), also known as the New Jersey Secure Choice Savings Program Act, on Jan. 7.
Identical legislation (A.B. 4275) was approved by the Assembly on Dec. 3.
The measure would create a retirement savings program for employees of companies with at least 25 workers who don't currently have an employer-provided plan, by requiring employers to facilitate automatic payroll deductions into individual retirement accounts.
Gov. Chris Christie (R) hasn't said whether he'll sign or veto the bill. Christie's spokesman Brian T. Murray told Bloomberg BNA on Jan. 8 that the governor's office doesn't comment on pending legislation until the governor has had adequate time to review it.
The move comes after the Obama administration released guidance and new rules in November that were designed to relieve concerns that state-directed retirement programs could be preempted by the Employee Retirement Income Security Act.
States including Massachusetts, California and Illinois have considered or passed similar measures.
More than 1.7 million people in New Jersey, or 53.5 percent of the state's workers, don't currently have access to a workplace retirement savings plan, according to the AARP New Jersey, which supported the bill.
The New Jersey Business & Industry Association opposed the measure, saying that while it supports automatic payroll deduction IRA programs for employees, it thinks such programs should be “completely voluntary” for both employers and workers.
According to New Jersey law, a bill passed within the last 10 days of the two-year legislative session will become law only upon the governor’s signature. Christie has until Jan. 19, or seven days after the session ends, to sign the bill. If he doesn't sign it, the bill will be “pocket vetoed,” meaning that it's vetoed without being sent back to the legislature for a possible override vote.
To contact the reporter on this story: Leslie A. Pappas in Philadelphia at firstname.lastname@example.org
To contact the editor responsible for this story: Jo-el J. Meyer at email@example.com
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)