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New Jersey Employers Must Act Soon: Are you Ready for RetireReady NJ?

Most employers with at least 25 employees in New Jersey that do not already offer a qualified retirement plan must soon take action to enroll their employees in the state’s “RetireReady NJ” retirement savings program. This imminent action item stems from the New Jersey Secure Choice Savings Program Act (the “Act”) that was signed into law in 2019. With the rollout of RetireReady NJ, New Jersey joins the ranks of New York State, New York City (in coordination with NYS) and Connecticut (among other jurisdictions) in mandating employee enrollment in employer-facilitated retirement plans by employers that do not already offer qualified retirement plans such as 401(k) or 403(b) plans.

RetireReady NJ requires New Jersey businesses that have (i) been in business for at least two (2) years; (ii) have 25 or more employees in New Jersey; and (iii) do not offer their own qualified retirement plan to automatically enroll their employees in an IRA through RetireReady NJ. This requirement applies to both for profit businesses and nonprofit organizations. For purposes of RetireReady NJ, a “qualified retirement plan” that would exempt an employer from the program’s enrollment requirements includes the most common forms of retirement plans, such as 401(k) plans, 403(b) plans, defined benefit pensions, and even SEP (Simplified Employee Pension) plans and SIMPLE IRAs. Importantly, an employer also satisfies the Act’s requirements concerning a qualified retirement plan if it offers employees a plan sponsored by an employee leasing company or professional employer organization (PEO) with which the employer has an employee leasing agreement or professional employer agreement.

Imminent Deadlines under RetireReady NJ

  • Employers with 40 or more employees must register with RetireReady NJ by September 15, 2024. Those who fail to register by June 15, 2025 may be subject to penalties under the Act, according to the program’s governing board, the Secure Choice Savings Board.
  • Employers with 25-39 employees must register with RetireReady NJ by November 15, 2024. Those who fail to register by August 15, 2025 may be subject to penalties under the Act.
  • Covered employers that already offer a qualified retirement plan must still certify their exemption under the Act with RetireReady NJ. Employers may certify their exemption here by entering their employer identification number and Access Code provided by the state. According to the program, covered employers should receive their Access Code by email or mail when it is time for the employer to register with RetireReady NJ.

In conclusion, it is recommended that Employers with employees in New Jersey take action now to determine if they are covered under the Act, and either (i) register their exemption with the state if they have a qualified retirement plan; or (ii) enroll their employees in RetireReady NJ at the appropriate time described above. For legal questions regarding the application of RetireReady NJ to your organization, please contact your employment counsel.

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Employment Notes, a newsletter produced by Tannenbaum Helpern Syracuse & Hirschtritt LLP’s Employment Law practice, provides insights on recent employment caselaw, legislation and other legal developments impacting employer policies, human resource strategies and related best practices. To subscribe to the newsletter, email marketing@thsh.com.

09.18.2024  |  PUBLICATION: Employment Notes  |  TOPICS: Employment

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