The leader of New Jersey’s Assembly wants the state to create a program to help private-sector workers save for retirement.
Legislation introduced by Assembly Speaker Vinnie Prieto would create individual retirement accounts for companies that employ at least 25 workers who don’t have access to an employer-provided retirement plan.
Employees could elect to have 3 percent or more of their income deducted and contributed to a state-administered plan.
Prieto says it differs from the state pension system that’s been plagued with funding concerns because of lower state contributions.
“This is not a pension plan that is matched by the employer or the state that they have to contribute an amount of money, said Prieto, D-Hudson. “It’s money that you are actually saving, and this is just giving you another tool and another resource for you to get that accomplished.”
The plan would make it convenient to contribute money on a regular basis, he said.