NJ moves closer to launching state-run 401k plan

The RFI was issued to financial institutions to offer various investment options for the states SBRM, which was created in 2016 after former Governor Chris Christie signed a law to create a supplemental, 401(k) investment retirement plan to employers with 0 or fewer workers.

SBRM was created in response to the Secure Choice Savings Program bill, which would have required small businesses to enroll or create a 401(k) plan.

According to the RFI, which was due Jan. 26, the SBRMs goal is to address the retirement savings gap by removing barriers to entry into the retirement market for small businesses.

The state maintains fiduciary responsibility, as well as oversight and final approval over any decisions affecting the plan. The responses to the RFI will be reviewed, and a shortlist to vendors will be announced in the coming months.

A Pew Charitable Trusts study estimated that only 53 percent of private sector workers in the state have access to a retirement savings plan, and just 47 percent choose to participate. The firm selected cant charge workers an administrative fee and can charge no more than 0 basis points in annual management fees. Copyright 201 BridgeTower Media. All Rights Reserved.

CREDIT: Vince Calio