NJ A4562

Authorizes municipalities, counties, and the State of New Jersey to establish automatic enrollment provisions for employee deferred compensation plans (457 plans), where employees are enrolled by default unless they opt out

Allows employers to set a default deferral percentage, provide for periodic escalation of deferral amounts, and periodically reenroll non-participating employees or those contributing below the default percentage

Requires that employees receive notice and a reasonable opportunity to terminate deferrals or choose a different contribution percentage

Mandates that employers with unionized employees negotiate automatic enrollment terms with the majority representative, including whether auto-enrollment applies, default percentages, and default investments

Permits the State Employees Deferred Compensation Board to designate classes of employees exempt from automatic enrollment, such as part-time, seasonal, or temporary workers