43:23-20 Additional duties, responsibilities of board.

8. In addition to the other duties and responsibilities provided in this act, the board shall:

a. Design, establish, and operate the program in a manner that:

(1) accords with best practices for retirement savings vehicles;

(2) maximizes participation, savings, and sound investment practices;

(3) maximizes simplicity, including ease of administration for participating employers and enrollees;

(4) provides an efficient product to enrollees by pooling investment funds;

(5) ensures the portability of benefits; and

(6) provides for the deaccumulation of enrollee assets in a manner that maximizes financial security in retirement;

b. Appoint a trustee to the fund in compliance with section 408 of the Internal Revenue Code;

c. Explore and establish investment options, subject to section 11 of this act, that offer employees returns on contributions and the conversion of individual retirement savings account balances to secure retirement income without incurring debt or liabilities to the State;

d. Establish the process by which interest, investment earnings, and investment losses are allocated to individual program accounts on a pro rata basis and are computed at the interest rate on the balance of an individual's account;

e. Make and enter into contracts necessary for the administration of the program and the fund, including, but not limited to, retaining and contracting with investment managers, private financial institutions, other financial and service providers, consultants, actuaries, counsel, auditors, third-party administrators, and other professionals as necessary;

f. Conduct a review of the performance of any investment vendors not less than once every two years, including, but not limited to, a review of returns, fees, and customer service, and post a copy of reviews conducted under this subsection to an Internet website established and maintained by the board;

g. Determine the number and duties of staff members needed to administer the program and employ a staff, including, as needed, appointing a program administrator, and entering into contracts with the State Treasurer to make employees of the department available to administer the program;

h. Ensure that moneys in the fund be held and invested as pooled investments described in section 11 of this act, with a view to achieving cost savings through efficiencies and economies of scale;

i. Evaluate and establish the process by which an enrollee is able to contribute a portion of the enrollee's wages to the program for automatic deposit of those contributions and the process by which the participating employer provides a payroll deposit retirement savings arrangement to forward those contributions and related information to the program, including, but not limited to, contracting with financial service companies and third-party administrators with the capability to receive and process employee information and contributions for payroll deposit retirement savings arrangements or similar arrangements;

j. Design and establish the process for enrollment by an employee pursuant to section 14 of this act, including the process by which an employee can opt not to participate in the program, select a contribution level, select an investment option, and terminate participation in the program;

k. Evaluate and establish the process by which an individual may voluntarily enroll in and make contributions to the program;

l. Accept any grants, appropriations, or other moneys from the State, any unit of federal, State, or local government, or any other person, firm, partnership, or corporation solely for deposit into the fund, whether for investment or administrative purposes;

m. Evaluate the need for, and procure as needed, insurance against any and all loss in connection with the property, assets, or activities of the program, and indemnify as needed each member of the board from personal loss or liability resulting from a member's action or inaction as a member of the board;

n. Make provisions for the payment of administrative costs and expenses for the creation, management, and operation of the program, including the costs associated with subsections e., g., i., and m. of this section, subsection b. of section 11, subsection a. of section 18, and subsection m. of section 19 of this act, and keep annual administrative fees as low as possible, but in no event shall annual administrative fees exceed 0.6 percent of the fund's total balance, except that, during the first three years after the establishment of the program annual administrative fees may be set at not more than 0.75 percent of the fund's total balance. "Administrative fees" shall include any investment fees incurred pursuant to this section. Subject to appropriation, the State may pay administrative costs associated with the creation and management of the program until sufficient assets are available in the fund for that purpose. Thereafter, all administrative costs of the fund, including repayment of any funds provided by the State, shall be paid only out of moneys on deposit therein, except that, private funds or federal funding received under subsection l. of this section in order to implement the program shall not be repaid unless those funds were offered contingent upon the promise of repayment;

o. Allocate administrative fees to individual retirement accounts in the program on a pro rata basis;

p. Set minimum and maximum contribution levels in accordance with limits established for IRAs by the Internal Revenue Code;

q. Facilitate education and outreach to employers and employees, including the promotion of the benefits of retirement savings and other information that promote financial literacy necessary for sound financial decision-making;

r. Facilitate compliance by the program with all applicable requirements for the program under the Internal Revenue Code, including tax qualification requirements or any other applicable law and accounting requirements;

s. Carry out the duties and obligations of the program in an effective, efficient, and low-cost manner;

t. Exercise any and all other powers reasonably necessary for the effectuation of the purposes, objectives, and provisions of this act pertaining to the program; and

u. Deposit into the New Jersey Secure Choice Administrative Fund all grants, gifts, donations, fees, and earnings from investments from the New Jersey Secure Choice Savings Program Fund that are used to recover administrative costs. All expenses of the board shall be paid from the New Jersey Secure Choice Administrative Fund.

L.2019, c.56, s.8.