NJ gets into the IRA business

David Madden
March 28, 2019 - 1:49 pm
 Gov. Phil Murphy

Amy Newman/NorthJersey.com via USA Today Network

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SADDLE BROOK, N.J. (KYW Newsradio) — New Jersey Gov. Phil Murphy travelled to a senior center in Bergen County to sign legislation that will create a state-run retirement savings plan for private sector workers who don’t have one through their employer.

It’ll take up to two years to get the Secure Choice Savings Act up and running, and it’s expected to cover as many as 1.7 million people.

Murphy notes the plan was vetoed by his predecessor, Chris Christie, in the midst of Christie’s 2016 campaign for president. But now it’s the law.

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"A Secure Choice IRA will give every worker the ability to save 3 percent, at least, of their pre-tax income, or a different amount, if it works for them, for retirement,” the governor said.

Funds will be deducted from a paycheck, and the plan can be taken from job to job. Businesses with more than 25 employees will be required to take part if they don’t offer their own plan.

A worker will select from several investment choices and can opt out if they want. Fees will be kept under 1 percent, although the state will assume start-up costs.

The program will be run by a board appointed by the governor and approved by the state Senate.