Lawmakers sent Gov. Phil Murphy a bill that would create a retirement savings program for many private sector employees who work for businesses that currently do not offer such a plan.
Assembly Bill 4134 establishes the New Jersey Secure Choice Savings Fund, a state-run individual retirement account, financed by a three percent automatic payroll deduction into the account unless the worker opts out.
The state Assembly approved the measure in a 55-18 vote at its Monday meeting, after the state Senate approved it in a 29-6 vote on Thursday.
The plan offering would be mandatory for businesses with more than 25 employees, but any employer under that threshold could still offer the plan to workers.
A4134 calls for an independent board to oversee the fund and establish the enrollment process and select a financial institution with which to partner to make fund investments.
Upwards of 1.7 million New Jersey residents do not have an employer-sponsored plan, according to a statement from the Assembly Democrats Office citing data from American Association of Retired Persons.