STATEMENT TO

ASSEMBLY, No. 4562

with Assembly Floor Amendments

(Proposed by Assemblywoman BAGOLIE)

ADOPTED: MARCH 24, 2025

      These floor amendments require an employer whose employees are represented by a union that is designated as the majority representative pursuant to the “New Jersey Employer-Employee Relations Act,” and eligible to participate in a deferred compensation plan, to negotiate the terms of a deferred compensation plan with such majority representative, including whether such employees represented by the majority representative will be automatically enrolled in the plan, the default deduction percentage from an employee’s salary, if any, and the default investment, if any.

      These floor amendments also require the State, and any other employer whose employees are represented by a union that is designated as the majority representative pursuant to the “New Jersey Employer-Employee Relations Act,” and eligible to participate in the New Jersey State Employees Deferred Compensation Plan, to negotiate the terms of a deferred compensation plan with such majority representative, including whether such employees represented by the majority representative will be automatically enrolled in the plan, the default deduction percentage from an employee’s salary, if any, and the default investment, if any.  The terms of a negotiated deferred compensation plan must be consistent with any applicable rules and regulations adopted by the New Jersey State Employees Deferred Compensation Board.

      These floor amendments require that, absent a written agreement between an employer and a majority representative, in order to participate in a deferred compensation plan, an employee represented by the majority representative must be required to affirmatively elect to participate.