Broker Check

New Jersey State-Mandated Retirement Plans

Exploring Your Options With NJ State-Mandated Retirement Plans 

Your employees are the heart of your organization. Providing quality benefits is important for recruiting and retaining the people who keep your business humming, while supporting their financial futures.

Many employees especially those who work for a smaller business don’t have access to a workplace retirement plan and are financially unprepared for retirement.
In 2021, the National Retirement Risk Index found that roughly half of Americans age 55 59 have insufficient savings to maintain their pre retirement standard of living.
The NRRI is published by Boston College’s Center for Retirement Research.

New Jersey Choice Plan

To address the importance of saving for retirement, the State of New Jersey created the New Jersey Secure Choice plan, a retirement program rolled out in in 2021. The plan requires employers with 25 or more employees to join, unless they offer another plan, like a 401(k), SIMPLE IRA or SIMPLE 401(k). Smaller employers may implement the plan voluntarily.

What is the New Jersey Secure Choice Plan?

The program is a state mandated retirement savings program for private sector workers who do not have a retirement plan available at work.

How does the New Jersey Secure Choice Plan work ?

  • Automatic 3% deduction from gross pay, deposited into an IRA, unless employee opts out or selects a different contribution amount.
  • Employees select investments
  • Fee deducted from employee accounts
  • Employees may opt out and opt in
  • Employees may (but are not required to) withdraw their account if they leave their job

When do I have to implement the New Jsersey Secure Choice Plan ?
All employers with at least 25 employees who do not sponsor another plan are currently required to implement the New Jersey Secure Choice plan. Smaller employers may join voluntarily.

What responsibilities do I have for the New Jsersey Secure Choice Plan ?
You must maintain an accurate employee census. This includes updating and submitting contributions for all employees, adding anyone who is newly eligible, and removing those who terminated during the pay period.


Yes. The law requires that employers with at least 25 employees provide access to a workplace retirement plan, but it does not require that you implement the New Jersey Secure Choice plan. 

A different plan, such as a 401(k), SIMPLE IRA, or SIMPLE 401(k), may meet the state’s requirements while providing:

  • More flexibility in plan design and investment options
  • Deductibility of employer contributions
  • Business tax credit
  • Outsourcing of plan administration
  • Greater opportunity for employees to save

A financial professional can help you evaluate the options and make the best decision for your business and employees.


We have the knowledge and experience to help you select the right retirement plan for your employees. Contact us to learn more about how easy, flexible, and cost effective it can be.