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June 9, 2025
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New Jersey Launches RetireReady NJ: Key Details for Employers
New Jersey’s RetireReady program is one of the latest state-mandated retirement initiatives to be introduced. This development is especially meaningful given that nearly one million workers in the state currently lack access to an employer-sponsored retirement plan, according to the American Retirement Association.
In March 2019, New Jersey Governor Phil Murphy signed legislation (P.L. 2019 c. 56) creating the New Jersey Secure Choice Act. Originally set to start in March 2021, the launch was delayed due to COVID-19.
The state created its own retirement fund where employees are automatically enrolled. Employers required to participate include:
Private or nonprofit employers with 25+ employees
Employers in business for at least two years
Employers without an existing retirement plan for employees
Deadlines in 2024:
By September 15, employers with 40+ employees had to register
By November 15, employers with 25–39 employees had to register
Required employers must automatically enroll all full- and part-time employees unless they opt out.
Contributions come from automatic payroll deductions, with a default rate of 3%. Employees can adjust this rate annually.
Funds are deposited into a Roth IRA, which is portable and belongs to the employee, meaning they can take their savings with them if they change jobs. Employers cannot match employee contributions.
Employers who provide qualified retirement plans such as 401(k), 403(b), SEP IRA, or SIMPLE IRA don’t have to join RetireReady NJ.
While the state covers all employer fees, employees pay management fees capped at 0.75% for the first three years and 0.6% thereafter, based on their account balance.
Private sector or nonprofit employers meeting the criteria must participate, but smaller businesses may join voluntarily.
Failing to comply can result in escalating penalties:
Year 1: Written warning
Year 2: $100 fine
Years 3 and 4: Up to $250 per non-enrolled employee
Year 5 and beyond: $500 per affected employee
Additionally, failing to forward employee contributions to the fund can lead to fines of $2,500 for the first offense and $5,000 for subsequent offenses.
Whether through RetireReady NJ or a private provider, offering retirement savings is a win-win. Employees get a way to plan for their future, and employers boost talent attraction and retention. Have questions? The Beyond benefits team is here to help!
