New Jersey Senate Bill S192

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires public employers that offer deferred compensation retirement plans to also offer Roth contribution option.

Impact

The enactment of S192 is expected to enhance retirement saving opportunities for public employees by providing an additional tax-advantaged option. By offering a Roth contribution choice, the bill seeks to cater to the diverse financial planning needs of employees, enabling them to prepare for their retirement more flexibly. This shift could encourage higher participation rates in retirement plans among employees who prefer the benefits of Roth accounts.

Summary

Senate Bill 192 requires public employers in New Jersey that offer deferred compensation retirement plans to also provide a Roth contribution option. This legislation aims to ensure that employees participating in these plans have access to an after-tax contribution method, allowing them to make contributions that can be withdrawn tax-free in retirement. Currently, there is no mandate for public entities to offer this option in their deferred compensation plans.

Contention

The discussion surrounding S192 could involve concerns about the potential administrative burdens that public employers may face when implementing this requirement. Some may argue against mandatory Roth options by emphasizing the importance of allowing greater flexibility in retirement plan offerings. Nevertheless, proponents stress that providing a Roth option is a progressive step toward enhancing employee retirement benefits and aligns with modern practices in retirement planning.