NJ A2542

State employees hired on or after January 1 following the bill's enactment would be automatically enrolled in the deferred compensation plan unless they affirmatively opt out or choose a different contribution percentage.

Counties and municipalities may optionally adopt automatic enrollment arrangements for their 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 union.

The plan fiduciary must designate a default investment for employees who do not make an affirmative investment election.

Absent a negotiated agreement with a union, represented employees must affirmatively elect to participate in the deferred compensation plan rather than being automatically enrolled.