NJ S2358

New Jersey State employees hired on or after the first January following enactment would be automatically enrolled in deferred compensation plans unless they affirmatively opt out or choose a different contribution percentage.

Counties, municipalities, and authorities may optionally adopt automatic enrollment arrangements for their employees' deferred compensation plans at their discretion.

Employers with union-represented employees must negotiate automatic enrollment terms, default deduction percentages, and default investments with the majority representative under the New Jersey Employer-Employee Relations Act.

If no agreement is reached between an employer and union, represented employees must affirmatively elect to participate in the deferred compensation plan rather than being auto-enrolled.

Named fiduciaries must designate a default investment option for employees who do not make an affirmative investment election under automatic enrollment arrangements.