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New JerseyA4562220th Legislature (2024-2025)HouseWALLET

Allows State, municipality, and county to implement automatic enrollment of their employees in deferred compensation plans.

Sponsored By: Rosaura Bagolie (Democratic), Roy Freiman (Democratic), John F. McKeon (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Automatic retirement enrollment for local public workers

Beginning January 20, 2026, New Jersey municipalities, counties, and authorities can adopt written plans for automatic retirement savings enrollment. Adoption is optional, and the law sets no default percentage of pay to save. Plans can raise that percentage over time and periodically reenroll workers who save less than the default or do not participate. Employees must get notice and a reasonable chance to stop deductions or choose a different percentage. Automatic deductions count as written consent, and the plan's fiduciary must choose a default investment for workers making no investment choice. For union-represented employees, plan terms must be negotiated; without a written agreement, those employees must actively choose to join. Deductions put money toward retirement savings but reduce take-home pay.

Automatic retirement enrollment for state workers

Beginning January 20, 2026, New Jersey's state retirement savings board can adopt a written automatic enrollment rule. Adoption is optional; the board sets the default savings percentage and can exclude groups such as part-time, seasonal, or temporary workers. Plans can raise that percentage over time and periodically reenroll workers who save less than the default or do not participate. Employees must get notice and a reasonable chance to stop deductions or choose a different percentage. Automatic deductions count as written consent, and the plan's fiduciary must choose a default investment for workers making no investment choice. For union-represented employees, terms must be negotiated under state plan rules; without an agreement, those employees must actively choose to join. Deductions put money toward retirement savings but reduce take-home pay.

Sponsors & Cosponsors

Sponsors

  • Rosaura Bagolie

    Democratic • House

  • Roy Freiman

    Democratic • House

  • John F. McKeon

    Democratic • Senate

Cosponsors

  • Atkins, Reginald W.

    Affiliation unavailable

  • Linda S. Carter

    Democratic • House

  • Mitchelle Drulis

    Democratic • House

  • Hall, Garnet R.

    Affiliation unavailable

  • Annette Quijano

    Democratic • House

  • Shanique Speight

    Democratic • House

  • Sterley S. Stanley

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 207 • No: 16

House vote • 1/12/2026

CONCUR IN SA

Yes: 68 • No: 7

Senate vote • 12/22/2025

AMEND

Yes: 36 • No: 0

Senate vote • 12/22/2025

3RDG FINAL PASSAGE

Yes: 36 • No: 0

House vote • 5/22/2025

3RDG FINAL PASSAGE

Yes: 67 • No: 9 • Other: 1

Actions Timeline

  1. Approved by Governor — P.L.2025, c.358.

    1/20/2026Governor

  2. Passed Assembly, PBH — (68-7-0)

    1/12/2026House

  3. Received in Assembly, 2RAC

    12/22/2025House

  4. Passed Senate — (36-0)

    12/22/2025Senate

  5. Substituted for S4554 (1R)

    12/22/2025Senate

  6. SA, 2nd Reading in Senate — (36-0) (McKeon)

    12/22/2025Senate

  7. Reported, 2nd Reading in Senate

    12/1/2025Senate

  8. Received in Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee

    5/29/2025Senate

  9. Passed Assembly — (67-9-1)

    5/22/2025House

  10. AA, 2nd Reading in Assembly — (Quijano)

    3/24/2025House

  11. Reported, 2nd Reading in Assembly

    12/12/2024House

  12. Introduced, 1st Reading in Assembly, Referred to Assembly State and Local Government Committee

    6/13/2024House

Bill Text

  • Version PL2025

    8/7/2026

    HTMLPDF

  • Version AL2025

    7/7/2026

    HTMLPDF

  • Senate 12/22/25 2R

    1/12/2026

    HTMLPDF

  • Assembly 3/24/25 1R

    12/23/2025

    HTMLPDF

  • Senate 12/22/25 1R

    12/23/2025

    HTMLPDF

  • Senate State Government, Wagering, Tourism & Historic Preservation Substitute (12/1/25 1R)

    12/2/2025

    HTMLPDF

  • As Introduced

    3/25/2025

    HTMLPDF

  • Assembly 3/24/25

    3/25/2025

    HTMLPDF

  • Assembly State and Local Government Substitute (12/12/24)

    12/13/2024

    HTMLPDF

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