SENATE EDUCATION COMMITTEE

STATEMENT TO

SENATE, No. 2411

STATE OF NEW JERSEY

DATED:  JUNE 20, 2022

     The Senate Education Committee favorably reports Senate Bill No. 2411.

     This bill requires a board of education of a school district with a student enrollment of at least 1,000 students that offers a 403(b) plan to school district employees to select a minimum of three financial institutions or pension management organizations to provide services to the 403(b) plan.  If fewer than three such financial institutions or pension management organizations are available, the board of education must select the number of financial institutions or pension management organizations available to meet the requirements of the bill.

     A financial institution or pension management organization that provides services to the 403(b) plan under the bill must: (1) enter into an agreement with the board of education that requires the financial institution or pension management organization to provide in an electronic format all data necessary for the administration of the 403(b) plan as determined by the board of education; and (2) provide all data required by the board of education to facilitate disclosure of all fees, charges, expenses, commissions, compensation, and payments to third parties related to investments offered under the 403(b) plan.