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A228
ASSEMBLY, No. 228
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman JOHN V. AZZARITI JR., M.D.
District 39 (Bergen)
SYNOPSIS
���� Requires public employers that offer deferred
compensation retirement plans to also offer Roth contribution option.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
requiring public employers that offer a deferred
compensation retirement plan to their employees to also offer a Roth
contribution option and supplementing P.L.1977, c.381 (C.43:15B-1 et seq. ),
P.L.1978, c.39 (C.52:18A-163 et seq.), and chapter 66 of Title 18A of the New
Jersey Statutes.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.� a.� As used in this
section, �Roth contribution option� means an employee retirement plan that
permits employees to make after-tax contributions to a retirement account
through salary deductions in a manner consistent with the federal Internal
Revenue Code and regulations.
���� b.��� Any municipality,
county, or an authority created by one or more counties or municipalities that
establishes a deferred compensation plan pursuant to P.L.1977, c.381
(C.43:15B-1 et seq.) and the federal Internal Revenue Code and regulations
shall ensure that a Roth contribution option is also offered to participants of
the plan.� The provisions of P.L.1977, c.381 (C.43:15B-1 et seq.) shall be
applicable to the extent necessary for the implementation of this section.
���� 2.� a.� As used in this
section, �Roth contribution option� means an employee retirement plan established
pursuant to the federal Internal Revenue Code and regulations that permits
employees to make after-tax contributions to a retirement account through
salary deductions in a manner consistent with the federal Internal Revenue Code
and regulations.
���� b.��� The New Jersey State
Employees Deferred Compensation Board in the Department of the Treasury shall
ensure that the New Jersey State Employees Deferred Compensation Plan
established pursuant to P.L.1978, c.39 (C.52:18A-163 et seq.) and the federal
Internal Revenue Code and regulations also offers a Roth contribution option to
participants of the plan.� The provisions of P.L.1978, c.39 (C.52:18A-163 et
seq.) shall be applicable to the extent necessary for the implementation of
this section.
���� 3.� a.� As used in this
section, �Roth contribution option� means an employee retirement plan that
permits employees to make after-tax contributions to a retirement account
through salary deductions in a manner consistent with the federal Internal
Revenue Code and regulations.
���� b.��� Any board of education
that establishes a deferred compensation plan pursuant to N.J.S.18A:66-127
through 129, inclusive, shall ensure that a Roth contribution option is also
offered to participants of the plan.� The provisions of
N.J.S.18A:66-127 through 129, inclusive, shall be applicable to the extent
necessary for the implementation of this section.
���� 4.��� This act shall take
effect 60 days following the date of enactment.
STATEMENT
���� This bill requires that any
public entity within the State that offers to its employees a deferred
compensation plan to also offer a Roth contribution option for the employees
who participate in the plan.� Roth contribution options permit employees to
make after-tax contributions to the retirement account through salary
deductions.� These after-tax contributions, and any subsequent earnings, can be
withdrawn tax-free in retirement.
���� Under current law, there is no
requirement that a Roth contribution option be made available to public
employees who choose to participate in their respective deferred compensation
retirement plan.
���� Under current law, public
employers may offer a deferred compensation plan to their employees.� Deferred
compensation plans provide an opportunity to voluntarily shelter a portion of an
employee�s salary from federal income taxes to save for retirement to
supplement Social Security and any other retirement plan provided by public
employers to their employees.