Most N.J. biz owners would back law creating retirement savings plans
By Susan K. Livio | NJ Advance Media for NJ.com
on January 05, 2016 at 12:57 PM, updated January 05, 2016 at 1:14 PM
NJ.com
TRENTON — The vast majority of small business owners in New Jersey
regardless of their political leanings say they would support a program that
would help them offer a retirement plan for their employees, according to a new
poll funded by the AARP.
Eighty percent of 450 business owners said they agreed with the statement:
"The governor should support creating retirement options that make it easier for
small businesses to offer retirement plans for their workers," according to the
poll.
The support was strongest among Democrats, at 90 percent, but 77 percent of
independents and 73 percent Republicans also agreed.
The timing of the poll coincides with a
crucial vote in the Senate Thursday on a bill that would require
private-sector employees that don't provide a retirement plan to offer "Secure
Choice." The plan would require employers to arrange enrollment and payroll
deductions but they would bear no other costs, according to the bill that passed
the Assembly in December.
The vote in the Senate is the last stop before the legislation heads to the
Gov. Chris Christie's desk.
AARP lobbyist Douglas Johnston said when the program is explained, people of
all political stripes support it.
"Even among self-described conservatives, 70 percent support this initiative.
That is great news," Johnston said. He also noted business groups such as the
Statewide Hispanic Chamber of Commerce, African American Chamber of Commerce and
the Asian-Indian Chamber of Commerce have written letters endorsing the
bill.
"We think this is a very pragmatic proposal that provides a very real,
substantive benefit for that businesses cannot afford or choose not to take on,"
Johnston added. "The hard-core ideological opposition is from people who
misunderstand it, in our opinion."
The New Jersey Business and Industry Association opposes the bill because it
mandates employer participation. The American Council of Life Insurers also
criticized the proposal, warning start-up costs for the state could be high.
Just 27 percent of those polled said they offered some form of retirement
plan. Those that didn't said they couldn't afford it (38 percent), their company
was too small or new (20 percent), or relied on seasonal workers (20 percent).
But nearly two-thirds of business owners who don't offer retirement plans said
they would participate in a state-run program, according to the poll.
"We are pleased with the result because it confirms what we have been hearing
from small businesses here in New Jersey... and consistent with the opinions
that we at AARP have heard around the country. Indeed, small businesses are
hungry to be able to offer this kind of benefit to their employees," said Ev
Liebman, AARP's associate state director. "People who run small businesses see
this as a benefit not a burden."
Employee participation in the program would be voluntary and the fund would
be portable from job to job, according to the legislation, (A4275).
The fund would be overseen by an unpaid seven-member board appointed by the
governor and legislature, and managed by a firm hired by the board. The firm
would be compensated through an employee fee that would not exceed 0.75 percent,
according to the bill.
Most N.J. workers anxious about being able to afford
retirement, poll shows
The NJ Secure Choice program would target companies that are at least two
years old, employ a minimum of 25 people, and do not offer a retirement savings
program, according to the bill. Small companies could opt-in to the program.
Employers that do not set up a payroll deduction and enrollment system would
face fines.
The Secure Choice legislation is one of hundreds of bills the legislature is
trying to pass before the legislative session ends at noon on Jan. 12. Gov.
Chris Christie has a week to decide whether to sign bills into law or let them
expire.
The new survey is based on responses from 450 owners of small businesses
employing no more than 100 people. Half had owned a business for six to 25
years, 26 percent had operated for 26 years or longer and 22 percent had run
their own business for less than five years. There were 28 percent Republicans,
24 percent independents, 23 percent Democrats who completed the survey, and 18
percent who described themselves as "something else."
The American Institute of Consumer Studies, a national research company based
in Newtown, Pennsylvania, conducted the telephone survey from Oct. 30 through
Dec. 1.