Employers in New York and New Jersey are still in limbo on the timeline for rolling out state-mandated retirement savings plans for employees. If you have workers in both states, the delay just might work in your favor.

Unlike businesses in California, Illinois, Maryland and Massachusetts, New York and New Jersey employers haven't heard much news lately about the status of mandated retirement plan legislation in their states.

A quick recap: In 2019, New Jersey signed into law the New Jersey Secure Choice Savings Program; a companion program in New York followed in 2021. Both states are still mapping out plans for implementation, so the programs are not yet operational.

But chances are good they'll have some variations in structure, from the type of plan you can sponsor to plan elements like auto enrollment and other nuances.

Those variations can complicate compliance efforts for companies with employees in both states. Which plan should you offer? Will you need two plans depending on where employees report for work? What about employees who still work from home?

The freedom to choose a retirement plan on your own terms

Though the New Jersey and New York mandated plans are still taking shape, if they follow the existing model they could be a an acceptable solution for some companies. However, they may also come with limited plan design options that may not be the best fit for your business.

Since any timelines have yet to be established for rollout of New Jersey and New York plan options, that means there's still time to work with knowledgeable retirement plan experts who can help you in three important ways:

  • Navigate your options based on your employee demographics and organizational goals
  • Give you greater control over the benefits offered
  • Find the right fit for your unique situation rather than a "one-size-fits-all" state plan

For example, if your employees are relatively unsophisticated in terms of managing their money and overall financial wellness, you may want to choose a plan that includes a robust employee education component. In comparison, an older employee population might lead you to favor a plan that allows maximum catch-up contributions.

Regardless of the plan you choose, helping your employees save for retirement is a must-have when it comes to attracting and retaining skilled workers. Choose wisely and your plan can pay dividends well into the future. We're all about delivering benefits across your business, so let us know how we can help.

Download our free guide to learn more about state mandated retirement plans or visit ADP Retirement Services.


Registered representative of ADP Broker Dealer, Inc. (ADP BD), Member FINRA, an affiliate of ADP, Inc., One ADP Blvd, Roseland, NJ 07068 and Associated person of ADP Strategic Plan Services, LLC (SPS) an SEC Registered Investment Adviser. Registration does not imply a certain level of skill or services.

ADP, Inc., and its affiliates do not offer investment, tax, or legal advice to individuals. Nothing contained in this article is intended to be, nor should be construed as, particularized advice or a recommendation or suggestion that you take or not take a particular action. Questions about how laws, regulations, guidance, your plan's provisions, or services available to participants may apply to you should be directed to your plan administrator or legal, tax or financial advisor. ADPRS-20220922-3634

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