ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5358

with committee amendments

STATE OF NEW JERSEY

DATED:  MAY 15, 2025

      The Assembly Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 5358.

As amended and reported, the bill reduces the threshold for required participation in the New Jersey Secure Choice Savings Program from businesses that have 25 or more employees to businesses that have one or more employees.

      The bill makes certain changes to administrative fees and clarifies that a public member will serve until a successor is appointed and may be reappointed upon the expiration of the member’s term.  Further, the bill provides additional board powers which include assessing the feasibility of making multi-state or regional agreements, entering into agreements with other state agencies, and establishing processes that will govern what happens to an account after an enrollee’s death.

      The bill shifts the responsibility to provide employees with informational packets about the program from participating employers to the program itself.

      The bill provides flexibility for enrollees to change deductions and enroll in the program and eases enforcement language around employers that violate the terms of the program

      The bill removes references to the term “small employer” in the “New Jersey Secure Choice Savings Program Act” to reflect the reduction in the participation threshold.

COMMITTEE AMENDMENTS:

      The committee amendments:

      (1)  clarify that a public member will serve until a successor is appointed and may be reappointed upon the expiration of the member’s term;

      (2)  make changes to administrative fees;

      (3)  provide additional board powers which include assessing the feasibility of making a multi-state or regional agreements, entering into agreements with other state agencies, and establishing processes that will govern what happens to an account after an enrollee’s death;

      (4)  shift the responsibility to provide employees with informational packets about the program from participating employers to the program itself;

      (5)  provide flexibility for enrollees to change deductions and enroll in the program;

      (6)  revise enforcement language around employers that violate the terms of the program; and

      (7)  make technical changes.

FISCAL IMPACT:

      Fiscal information is not available at this time.