New Jersey A2542 allows State, municipality, and county to implement automatic enrollment of employees in deferred compensation plans.

New Jersey A2542 allows State, municipality, and county to implement automatic enrollment of their employees in deferred compensation plans. Employers must negotiate the terms of a deferred compensation plan with a majority representative, including whether employees will be automatically enrolled, the default deduction percentage from an employee’s salary, and the default investment. The named fiduciary of the plan designates a default investment for employees who do not make an affirmative investment election.

New Jersey A2542 allows State, municipality, and county to implement automatic enrollment of employees in deferred compensation plans.

New Jersey A2542 allows State, municipality, and county to implement automatic enrollment of their employees in deferred compensation plans. Employers must negotiate the terms of a deferred compensation plan with a majority representative, including whether employees will be automatically enrolled, the default deduction percentage from an employee’s salary, and the default investment. The named fiduciary of the plan designates a default investment for employees who do not make an affirmative investment election.