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HORIZON BLUE CROSS AND BLUE SHIELD ASSOCIATION.

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>>> FROM NJ PBS THIS IS NJ SPOTLIGHT NEWS WITH BRIANA VANNOZZI.

>> GOOD EVENING AND WELCOME TO NJ SPOTLIGHT NEWS, I AM JOANNA GAGIS AND FOR BRIANA VANNOZZI.

ON THIS CHRISTMAS EVE WITH HAVE A NJ SPOTLIGHT NEWS SPECIAL REPORT EVERYTHING YOU NEED TO KNOW ABOUT RETIRING HERE IN THE GARDEN STATE.

THE REP PORT COMES FROM A HARD WORKER DEVELOPMENT TEAM BEFORE COVID-19 IS PART OF OUR COMMITMENT TO COMMUNITY ENGAGEMENT WE BRING TOGETHER COMMUNITY LEADERS IN PERSON TO DISCUSS IMPORTANT ISSUES IMPACTING OUR STATE ONCE COVID- 19 HIT OUR DIGITAL TEAM BEGAN PRODUCING THESE AS VIRTUAL ROUNDTABLES ONLINE.

IT IS INFORMATION YOU NEED TO KNOW.

TONIGHT WE DECIDED TO REPRODUCE AND BROADCAST ONE OF THESE CONVERSATIONS FOR YOU, OR TELEVISION AUDIENCE.

TONIGHT OUR VERY OWN BUSINESS REPORTER AND ANCHOR OF NJ BUSINESS BEAT, RWJ BARNABAS HEALTH, MODERATES A ROUNDTABLE WHO LOOK AT ISSUES OF THE IMPACT OF RETIREMENT SAVINGS PROGRAMS, THE IMPORTANCE OF ADDRESSING INEQUALITY AND THE NEW JERSEY SECURE CHOICE SAVINGS PROGRAM AND HOW YOU CAN SAFELY AND SECURELY RETIRE HERE IN NEW JERSEY.

RHONDA IS JOINED BY LUIS DE LA HOZ, DAVID JOHN, PUBLIC POLICY INSTITUTE AND ALSO DEPUTY DIRECTOR OF RETIREMENT SECURITY PROJECT AT THE BROOKINGS INSTITUTION.

SHARIFF MUHAMMAD, CHIEF EXECUTIVE OFFICER OF UNLIMITED FINANCIAL GROUP AND ASSEMBLY MEMBER ROY FREIMAN.

HERE NOW IS RHONDA.

>> Reporter: THERE'S MANY TIMES IF YOU'RE NOT RETIRED YOU SPEND TIME THINKING ABOUT HOW YOU'RE GOING TO GET THERE WE WILL HELP YOU NAVIGATE THAT WITH THIS CONVERSATION.

LET'S GO TO DAVID TO KICK OFF THE BIG PICTURE WE TALK ABOUT RETIREMENT SECURITY BUT I REALLY WONDER OFTEN IF THIS RETIREMENT INSECURITY, HOW BIG OF A PROBLEM DO WE HAVE IN THIS COUNTRY AND IN NEW JERSEY OF PEOPLE NOT BEING PREPARED FOR RETIREMENT?

>> IT'S A VERY BIG PROBLEM, THANK YOU RHONDA.

WE HAVE FAR TOO MANY PEOPLE WHO HAVE EITHER MINIMAL RETIREMENT SAVINGS OR INSUFFICIENT RETIREMENT SAVINGS.

THIS IS A SERIOUS PROBLEM BECAUSE YOU'RE GOING TO NEED SAVINGS FOR AT LEAST TWO PURPOSES, FOR A LARGE NUMBER OF PEOPLE THAT ARE GOING TO NEED SAVINGS AS A WAY TO SUPPLEMENT THEIR SOCIAL SECURITY BENEFITS, A SIGNIFICANT OTHER GROUP WILL NEED RETIREMENT SAVINGS TO MEET THE INEVITABLE CRISES THAT HIT WHENEVER YOU ARE RETIRED, JUST BECAUSE YOU ARE RETIRED DOESN'T MEAN THE CAR WILL BREAK DOWN OR THE HOT WATER HEATER IS GOING TO SPRING UP LEAK OR SOMETHING ALONG THAT LINE.

REGARDLESS OF YOUR INCOME LEVEL AND WHO YOU ARE, WHAT YOUR JOB HAS BEEN IN THE PAST YOU NEED TO HAVE SOME LEVEL OF ADDITIONAL SAVINGS TO MAKE YOUR RETIREMENT COMFORTABLE.

THE BEST WAY TO DO THAT IS THROUGH THE COMBINATION OF PAYROLL DEDUCTION AND AUTOMATIC ENROLLMENT.

LUCKILY NEW JERSEY IS TALKING ABOUT SETTING UP THIS KIND OF RETIREMENT SAVINGS PROGRAM TO MAKE SURE EVERYONE CAN HAVE A COMFORTABLE RETIREMENT.

>> DAVID, THANK YOU, YOU ARE TALKING ABOUT NEW JERSEY SECURE CHOICE, FOR SOMEONE TO TELL US ABOUT THE PROGRAM I WANT TO TURN TO THE ASSEMBLYMAN WHO CAN GIVE US A LITTLE BIT OF HISTORY HOW THIS PROGRAM CAME TO BE LEGISLATIVELY AND WHAT ARE SOME OF THE HIGHLIGHTS OF THIS PROGRAM WILL BE ROLLING OUT HOPEFULLY BY SPRING?

>> THANK YOU VERY MUCH FOR THE INTRODUCTION AND THE OPPORTUNITY TO SPEAK ABOUT SECURE CHOICE.

THIS LEGISLATION GOES BACK A COUPLE OF YEARS SPONSOR ON THE SENATE SIDE, THE CONCEPT WAS, HOW TO BRING ABOUT AS DAVID TALKED ABOUT A MOMENT AGO AN EASY AND CONVENIENT WAY FOR EMPLOYERS TO OFFER A RETIREMENT PLAN FOR THEIR EMPLOYEES, WE'VE MENTIONED 1.7 MILLION PEOPLE THAT ARE GOING TO BE IMPACTED BY THE LEGISLATION AND WHAT THAT MEANS, THIS GROUP OF INDIVIDUALS WILL HAVE THE ABILITY TO START DOING RETIREMENT THAT YOU MIGHT TYPICALLY SEE ASSOCIATED WITH LARGER ORGANIZATIONS, SOMETHING THAT IS PART OF A BENEFITS PACKAGE AND A LARGER ORGANIZATIONS.

>> ASSEMBLY MEMBER, THESE ARE STILL KIND OF EARLY DAYS FOR THIS SPECIFICS, CORRECT?

>> THIS WAS SUPPOSED TO HAVE BEEN IMPLEMENTED ORIGINALLY, THE GOAL WAS LAST MARCH, WE WERE LITTLE BIT PREOCCUPIED WITH THE PANDEMIC LAST MARCH WAS PUSHED OUT A YEAR THIS COMING MARCH AND THE GOAL IS TO MAKE IT WHERE EMPLOYERS ARE ELIGIBLE TO HAVE THIS AVAILABLE TO THEIR EMPLOYEES.

THE DETAILS OF WHICH TYPE OF INVESTMENTS CAN BE AVAILABLE STILL BEING IRONED OUT BY ANTICS AND ADVISORY GROUP AND YOU WOULD GET A PACKET FROM YOUR EMPLOYER AND THEIR CHOICES WOULD BE THERE.

>> LET ME BRING YOU INTO THE CONVERSATION NOW, LUIS YOU ARE A FACTOR OF THE SECURE CHOICE PLAN WHY DID YOU SEE THIS IS SOMETHING THAT WAS REALLY PART OF HAPPENING IN NEW JERSEY?

>> I JUST WANT TO SAY THAT HE FELT, DESCRIBE EARLY IN THE CONVERSATION, WE ARE MINORITIES, LOW INCOME INDIVIDUALS, WE WORK MOSTLY WITH MICRO-BUSINESSES, DID YOU KNOW 140,000 LATINOS BUSINESS OWNERS IN THE STATE OF NEW JERSEY.

THOSE THE MAIN REASON BECAUSE WE DON'T HAVE THE ABILITY TO SAVE AND IF WE DO IT WE DO IT WITH CASH DOESN'T ALLOW US TO INCREASE OUR SAVINGS.

I THINK THAT HAVING AN OPPORTUNITY THAT WE CAN SAVE ON HER OWN AND PROVIDE AN OPPORTUNITY THAT THE EMPLOYEE CAN SAVE WITHOUT THE EMPLOYER REQUESTED PAY OR PAY PART OF THAT COST IS IMPERATIVE FOR A COMMUNITY.

>> SHARIFF, BASED ON YOUR EXPERIENCE WORKING WITH CLIENTS, HOW IS IT TO WORK WITHOUT THAT EMPLOYER PLAN.

DAVID OUTLINES IN THE BEGINNING THE DIFFICULTIES THERE, ANY KIND OF SAVING IS GOOD IN THE STATE BUT YOU SEE THAT WITH THE CLIENT YOU WORK WITH FOR RETIREMENT?

>> ABSOLUTELY, THANK YOU SO MUCH FOR HAVING ME.

WHAT I WILL SAY, I WORK WITH A NUMBER OF CLIENTS WHO RUN SMALL BUSINESSES AND SOME OTHER RESTAURANTS IN THE GREATER CENTRAL NEW JERSEY AND SITTING DOWN WITH A NUMBER OF EMPLOYEES, CONVERSATION RELATING TO SAVING FOR RETIREMENT IS GENERALLY ONE THAT IS NOT HAVE ENOUGH, BUT WE WILL FIND IS THAT CONVERSATION ONLY COMES TO LIGHT WHEN THEY ARE FACING, HAVING A LARGER THAN EXPECTED REFUND FROM THE TAX ATTORNEY OR SOME SORT OF WINDFALL WHERE THEY CONSIDER THE TAX BENEFITS OF INVESTING IN AN IRA THEN THEY PUT FUNDING INTO IT IN ONE GIVEN YEAR BUT THEY DON'T DO IT CONSISTENTLY YEAR IN AND YEAR OUT.

>> IN TERMS OF THE FACT THAT THIS IS CONTRIBUTION MADE BY THE EMPLOYEE, I'M GOING TO GUESS THAT WHEN THIS WAS BEING DISCUSSED, PART OF THE RETURN WAS THE COST OF THE EMPLOYER, I'M ASSUMING YOU DID NOT WANT THAT TO BE A BARRIER FOR THIS PLAN?

>> VERY IMPORTANT THAT DOESN'T COST THE EMPLOYER BECAUSE THE EMPLOYER DOESN'T WANT TO AFFORD ANOTHER COST.

THEY ARE HAVING ENOUGH TO BE CONCERNED ABOUT RIGHT NOW.

BUT THE MOST IMPORTANT THING IS IF MANY EMPLOYEES HAVE THE ABILITY TO SAVE MORE A SMALL AMOUNT OF MONEY OVER LONG PERIOD OF TIME THEY SHOULD BE ABLE TO GET BETTER RETURN AND THAT INVESTMENT IN THE LONG TERM.

>> DAVID, LET'S TURN TO YOU NOW AT AARP HAVE YOU SEEN SIMILAR EFFORTS WHAT YOU'VE SEEN IN NEW JERSEY AND IN OTHER STATES HAVE THEY BEEN SUCCESSFUL?

>> THERE ARE THREE OPERATING STATE PROGRAMS IN OREGON, CALIFORNIA AND ILLINOIS THAT ARE WORKING THE SAME WAY THEY HAVE BEEN PHENOMENALLY SUCCESSFUL.

SMALL BUSINESS EMPLOYEES HAVE BEEN ABLE TO SAVE A SIGNIFICANT AMOUNT, THEY BEEN ABLE TO SAVE IN A ROTH IRA WHICH MEANS DURING THE COVID-19 CRISIS IF THEY ABSOLUTELY HAVE TO HAVE THE EMERGENCY SAVINGS THEY COULD TAKE SOME OF THEIR OWN MONEY OUT WITHOUT HAVING ANY SORT OF PENALTY AND JUST AS IMPORTANT, THE STUDIES IN OREGON WHICH IS THE OLDEST IN THE SYSTEM, SEVERAL YEARS OLD, 80% OF EMPLOYERS SAY THEY HAVE NO STARTUP COSTS AND THE OTHERS, MOSTLY THE COST OF CHANGING THEIR PAYROLL PROCESS AND OFFICE SUPPLIES.

>> THANK YOU DAVID.

SHARIFF LET'S ADDRESS PEOPLE WHO ARE EITHER RETIRED NOW ARE VERY CLOSE TO RETIREMENT WHO ARE FEELING THEY ARE NOT GOING TO BE HAVING ENOUGH.

THEY WILL HAVE SOCIAL SECURITY BUT PERHAPS THEY HAVE NOT SAVED, PERHAPS HAVE A PENSION, COST-OF- LIVING IS REALLY DIFFICULT FOR THEM RIGHT NOW, THESE ARE THE TOUGH CASES, SHARIFF, HOW DO YOU GUIDE SOMEBODY WHO IS IN THE SITUATION WHERE REALITY HAS SET IN AND THERE IS A REAL FEAR ABOUT NOT HAVING ENOUGH MONEY OR PERHAPS THE MONEY YOU SAVE MIGHT NOT LAST FOR LIFE.

>> WE HAVE TO TAKE A TRIAGE APPROACH TO THINGS, ONE OF THE THINGS THAT NEW JERSEY DOES HAVE IN ITS WHEELHOUSE IS A NUMBER OF PROGRAMS FOR SENIORS WHERE THERE ARE SOME BENEFITS, BASED ON THE INCOME THAT THEY GET IN RETIREMENT, IF THAT INCOME IS 100 PERCENT RETIREMENT BASED AND THE CLIENTS IS 62 AND OVER, THAT INCOME IS NOT SUBJECT TO TAX UP TO 100 THOUSAND WHICH IS A BIG BENEFIT WE LOOK TO SOME OTHER COMMUNITY PROGRAMS REGARDING LOW COST HOUSING RENTAL OPTIONS AND THERE ARE SOME ASSISTANCE FOR MEDICARE OR RELATED COSTS WHERE THE STATE PROVIDE SOME BENEFITS OF ASSISTANCE FOR THE ASSISTANCE WITH PRESCRIPTION DRUG PLANS THROUGH MEDICARE AND DEPENDING ON THE LEVEL OF INCOME THERE MIGHT BE SOME ASSISTANCE TO OFFSET THE PART B PREMIUMS AS WELL SO WORKING WITH CLIENTS TO REALLY HELP THEM TO GET I GUESS A REALISTIC VIEW OF WHERE THEIR FINANCES ARE.

>> SHARIFF THANKS, WE ARE GOING TO STICK WITH SOME TOUGH QUESTIONS, I'M GOING TO GO BACK TO THE ASSEMBLY MEMBER.

PEOPLE HAVE CONCERNS ABOUT THE COST OF LIVING IN NEW JERSEY.

THE QUESTIONS ABOUT WHAT ELSE COULD THE LEGISLATURE DO TO HELP SENIOR CITIZENS STAY IN THE STATE, SOME PEOPLE POINTING OUT OUR NEIGHBORING STATE DOES NOT HAVE PENSIONS, ARE THESE ISSUES BEING TALKED ABOUT IN THE STATE LEGISLATOR AND DO YOU THINK THEY WILL COME UP AGAIN IN THE NEW LEGISLATURE?

>> THE SHORT ANSWER IS YES.

AS A MATTER OF FACT, WE HEARD FROM A NUMBER THE IDEA HUNDRED THOUSAND DOLLAR LIMIT ON TAX PENSION, CHAIRED RECENTLY SIGNED RACE ABOUT 250,000, WE HAVE PROPOSALS I'VE BEEN ONE OF THE PROPONENTS OF OFFERING SIGNIFICANT TAX BREAKS, 25% TAX BREAKS FOR SENIORS.

I THINK ULTIMATELY TO GET TO LONG-TERM SOLUTIONS WE HAVE TO LOOK AT STRUCTURAL CHANGES.

WE HAVE TO LOOK AT THE FACT THAT SOMEONE HAS GONE INTO THEIR HOME, RAISE A FAMILY AND A HOME AND THE TAX RATE ON THAT HOME KEEPS GOING UP BUT THE INCOME IS NOT.

THIS IS BEEN THE FOUNDATION OF HOW LOCAL MUNICIPALITIES AND SCHOOL DISTRICTS ARE FUNDED AND TO TAKE A LOOK AT THAT AFFORDABILITY AND SAY DOES THAT MAKE SENSE?

>> THERE'S A LOT OF THOUGHT THAT GOES INTO SOME OF THESE ITEMS.

YOU WILL PROBABLY CONTINUE TO GET QUESTIONS LIKE THIS.

I WANT TO CIRCLE BACK ON SECURE CHOICE A LITTLE BIT MORE.

DAVID, LET ME GO TO YOU.

THE INCENTIVE FOR SOMEBODY TO PARTICIPATE IN A SECURE CHOICE PLAN, A PLAN LIKE THIS AS OPPOSED TO OTHER PLANS WHERE YOU CAN PUT MORE MONEY AWAY, MAYBE YOU HAVE A SPOUSE WITH THE 401(K), AND ANOTHER PLAN, EXPLAIN TO ME HOW EMPLOYEES WILL BE INCENTIVIZED, WHAT DO WE LEARN THAT EARLIER THAT OTHER STATES, AND WE CAN WHAT CAN WE USE HERE IN NEW JERSEY?

>> WHAT THE PLAN WOULD USE, AUTOMATIC ENROLLMENT, ONE OF THE BIGGEST FRUSTRATIONS WITH TRYING TO SAVE FOR RETIREMENT IS TRYING TO FIGURE OUT, I HAVE NO IDEA HOW MUCH TO SAVE, NO IDEA WHAT TO SAVE IT IN OR ANYTHING LIKE THIS.

SO WITH AUTOMATIC ENROLLMENT THE INDIVIDUAL SAVER IS IN TOTAL CONTROL OF THE PROCESS THAT THEY ARE GIVEN SOME GUIDANCE.

THE GUIDANCE IS, UNLESS YOU DECIDE NOT TO, WE ARE GOING TO HELP YOU INTO THIS PLAN AND WE ARE GOING TO PUT YOU IN AT A RECOMMENDED LEVEL OF SAVINGS, YOU CAN SAVE MORE OR LESS IF YOU DECIDE NOT TO SAVE AT ALL.

AND WE HAVE THE APPROPRIATE COST OF FAITH LIVE RETIREMENT SAVINGS VEHICLE FOR YOU THAT YOU DON'T HAVE TO SIT DOWN AND WORRY ABOUT IF YOUR EMPLOYER OFFERS A 401(K) THE MOST WHICH YOU WILL HAVE.

IF YOUR EMPLOYER DOESN'T OFFER A 401 K AND MADE CERTAIN OTHER CRITERIA, SIZE FOR INSTANCE THEN THE OPTION WILL BE NEW JERSEY SECURE CHOICE.

>> LUIS, DAVID MENTIONED THIS EARLY ON AND YOU ALLUDED AS WELL , THE ISSUES WE HAVE IN OUR STATE WERE SOME MINORITIES DO NOT HAVE THE SAME SORT OF ACCESS, WE HAVE THE DISPARITY PROBLEM IN OUR STATE, SIGNIFICANT WEALTH GAP WHEN WE TALK ABOUT MINORITIES, HOW MUCH WILL SECURE CHOICE DO HELPING TO CLOSE THAT GAP?

>> IT IS REALLY IMPORTANT FOR OUR COMMUNITY THAT EMPLOYEES THAT WE HAVE IN THOSE SMALL BUSINESSES, BEAUTY SALONS, BARBERSHOPS, BODEGAS, RESTAURANTS, THEY DO HAVE THE ABILITY TO SAVE ON THEIR OWN OR THEIR OWN FUTURE.

I ALSO BELIEVE IT IS IMPORTANT TO STEP FORWARD IF SOMEONE LEARNED THAT THEY CAN SAVE MONEY ON THEIR OWN AND THEY CAN SAVE MONEY AT THEIR OWN PACE, WHEN THEY GET TO THE POINT THAT THE EMPLOYER WILL HAVE ANOTHER ALTERNATIVE AT LEAST THEY WILL HAVE THE BASIC KNOWLEDGE TO KNOW HOW TO DEAL WITH THAT.

>> LUIS YOU'RE AT TOUCHING ON THE NEED FOR KNOWLEDGE, DAVID ALSO BROUGHT UP THE FACT SOMETIMES WHEN YOU LOOK AT OPTIONS IN THE PLAN YOU CAN PICTURE MONEY AND IT'S A LITTLE OVERWHELMING.

SHARIFF, LET ME TURN TO YOU FOR THIS.

MOST PEOPLE DEPENDING ON THEIR AGE CERTAINLY LOOK FOR A PORTFOLIO OR TO SAVE THEIR MONEY IN A BALANCED SENSE.

YOUR SON MONEY IN STOCKS, YOU MIGHT HAVE SOME MONEY IN FIXED INCOME.

IS THERE A RULE OF THUMB THAT YOU CAN SHARE WITH PEOPLE IN TERMS OF THOSE INVESTMENT STRATEGIES AT VARIOUS AGES IF YOU WANT TO MAXIMIZE YOUR MONEY FOR RETIREMENT.

>> I RECOMMEND TO YOUNG PROFESSIONS COMING OUT OF COLLEGE JUST PUT ALL YOUR MONEY INTO AN INDEX, S&P 500 FUND, GO ENJOY YOURSELF.

AND THEN AS THEY GET OLDER, ENTERING INTO THEIR 30s AND START TO GET MARRIED AND HAVE FAMILIES, I LOOK TO DIVERSIFY A LITTLE WHERE WE START TO INTRODUCE EITHER SOME FIXED INCOME OR OTHER ELEMENTS, MAYBE WE TAKE NOT ONLY S&P 500 WE MIGHT BREAK THAT OUT INTO INTERNATIONAL EXPOSURE AS WELL AS INTRODUCING SOME FIXED INCOME.

>> I HATE TO BRING THIS UP BUT I WILL.

APPARENTLY DURING THE PANDEMIC WE SAW SO MANY SMALL BUSINESSES CLOSE AND REALLY STRUGGLE, HOW ARE EMPLOYEES PROTECTED, HOW ARE THEIR INVESTMENTS PROTECT THE IF SOMETHING UNFORTUNATE HAPPENS LIKE A BUSINESS FAILURE?

>> THIS IS AN EXCELLENT QUESTION.

THIS IS NOT GOING TO BE UNDER THE GUISE AND THE ACCESS FOR THE EMPLOYER, THIS IS AN INDIVIDUAL'S RETIREMENT SO IF WE GO BACK TO THE START UP, TODAY THEY DON'T HAVE RETIREMENT , THEY CAN CONTACT AN INVESTMENT FIRM AND GO TO THROUGH THE PROCESS OF SETTING UP AN INDIVIDUAL RETIREMENT ACCOUNT WHAT WE ARE DOING IS, WE ARE GATHERING A LARGE BLOCK OF POTENTIAL INVESTORS FOR RETIREMENT AND WORKING WITH THESE INVESTMENT FIRMS AND NEGOTIATE LOWER RATES ON EASE AND ADMINISTRATION FEES BEHIND THE SCENE MAKE IT EASY FOR THEM TO JOIN.

THIS IS MONEY THAT IS UNDER THEIR CONTROL, THEY GO TO A DIFFERENT EMPLOYER OR QUIT IS THEIR MONEY.

>> LUIS, YOU ARE TELLING US BEFORE IT TOOK YEARS FOR THIS PLAN TO BE COME TO FRUITION.

WHAT WAS SOME OF THE BIG HURDLES AND QUESTIONS THAT WERE ALONG THE WAY?

>> TRYING TO EXPLAIN THE BENEFITS WAS REALLY IMPORTANT.

DIFFERENT SYSTEMS FROM DIFFERENT EMPLOYERS AND DIFFERENT PEOPLE BECAUSE EVERYBODY WANT THE ANSWERS TO MEDIA QUESTIONS.

THIS WAS FOCUSED ON THE LONG- TERM.

BECAUSE THERE'S NOT A LOT OF DATA, PLAN IN PLACE, WE DIDN'T HAVE ALL THE ANSWERS AND I THINK THAT WAS FOR THE RIGHT ANSWERS AT THE MOMENT WHEN WE START THE PROCESS.

>> LET ME GO OVER TO YOU IN TERMS OF SECURE CHOICE INVESTING IN A PLAN LIKE THIS IN TAXES?

>> THE SECURE CHOICE PLAN MOST OF THE STATES WE HAVE THREE OPERATING WE HAVE A NUMBER THAT ARE IN THE PROCESS OF IMPLEMENTING A PLAN, USUALLY USE A ROTH IRA, AFTER-TAX MONEY, THIS HAS TWO ADVANTAGES FOR YOU.

NUMBER ONE, IN THE EVENT YOU HAVE A FINANCIAL EMERGENCY YOU CAN PULL YOUR MONEY OUT OF YOUR OWN CONTRIBUTIONS OUT OF THE RETIREMENT PLAN, WITHOUT ANY ADDITIONAL TAX PENALTY, THE OTHER TYPE, THE TRADITIONAL.

ONCE YOU PUT THE MONEY INTO THE PLAN AND ASSUME YOU LEAVE IT THERE TILL RETIREMENT, ALL THE BUILDUP THAT WAS DISCUSSED FROM THE INVESTMENTS IS TAX-FREE AND WHEN YOU COME TO TAKE THAT MONEY OUT AT RETIREMENT WHETHER IT'S FOR AN EMERGENCY OR INCOME THAT MY MONEY IS TAX-FREE.

>> WHAT ARE YOUR EXPECTATIONS OF SOMEONE WHO IS DEEPLY ENTRENCHED IN RETIREMENT POLICY , FOR SECURE CHOICE, ONCE IT LAUNCHES IN TERMS OF PARTICIPATION AMONG THE EMPLOYEES AND ENTHUSIASM AMONG THOSE EMPLOYEES AND EMPLOYERS, HOW MUCH OF A GAME CHANGER IN YOUR VIEW IS THIS GOING TO BE, BOTTOM LINE, ARE WE GOING TO IMPROVE RETIREMENT SECURITY IN NEW JERSEY?

>> THE BOTTOM LINE, YOU WILL IMPROVE RETIREMENT SECURITY FOR NEW JERSEY, IMPROVE FINANCIAL SECURITY FOR NEW JERSEY AND LITERALLY GOING TO BE HELPING HUNDREDS OF THOUSANDS OF PEOPLE TO BUILD A MUCH BETTER FEATURE.

FUTURE.

WHAT WE SEEN THROUGH THESE PROGRAMS ALREADY OPERATING, WE SEE THE VAST MAJORITY OF EMPLOYERS SAY THAT IMPLEMENTING THE PROGRAM WAS EASY, OPERATING IT WAS EASY.

>> IS YOU MENTIONED ONLY HANDFUL OF STATES DOING A PROGRAM LIKE THIS WHY DID IT MAKE SENSE FOR NEW JERSEY?

>> NEW JERSEY HAS A SIGNIFICANT NUMBER OF INDIVIDUALS WHO DON'T HAVE A RETIREMENT SAVINGS PROGRAM ON THEIR OWN.

ONE OF THE THINGS THAT WE HAVE DISCOVERED HERE THROUGH VARIOUS RESEARCH IS THAT IF WE DON'T ASSIST PEOPLE TO SAVE SOME OF THEIR OWN MONEY AND HELD THEIR OWN FUTURE, BASICALLY THEY ARE GOING TO NEED TO DEPEND ON TAXPAYER SERVICES SO THERE'S GOING TO BE A SIGNIFICANT COST TO THE STATE AND TO THE TAXPAYERS WHO SUPPORT THE STATE IF WE DON'T HAVE SOMETHING LIKE NEW JERSEY SECURE CHOICE.

>> THANK YOU.

ASSEMBLY MEMBER, IS THERE ANY, COST SAVINGS FOR NEW JERSEY, CONCEPTS NOT IN PLACE YET, ANY ESTIMATES ON THAT AT ALL?

>> I WOULD SAY THE WAY TO LOOK AT THIS IS HOW CAN THE STATE HELP FACILITATE EMPLOYERS DOING THIS, IF AN EMPLOYER TRIED TO INDIVIDUALLY SET THIS UP, HELP WITH SOME OF THE SPECIFICS.

IT'S VERY COSTLY TO HIRE A THIRD-PARTY ADMINISTRATOR, IF AN EMPLOYER WANTS TO DO THIS.

THIS IS NOT DESIGNED, THE COST ASSOCIATED WITH ONGOING COSTS IS GOING TO BE BORN THROUGH THE ACTUAL THIRD-PARTY ADMINISTRATOR, INVESTMENT HOUSES THERE WILL BE MANAGING THIS SO THIS IS NOT GOING TO BE A BURDEN ON THE TAXPAYER BY OFFERING THIS PROGRAM.

>> IN TERMS OF WHAT YOU WANT TO SEE, LUIS HOW DO YOU MAKE THE ROLLOUT AS SMOOTH AS POSSIBLE, I'M THINKING RIGHT AWAY IN THE ASSEMBLY MEMBER IS TALKING ABOUT BENEFITS PACKAGE I WOULD HOPE THE ROLLOUT WOULD BE BILINGUAL TO ADDRESS?

>> DEFINITELY WE NEED TO BE SENSITIVE, PEOPLE THAT CAME FROM 22 DIFFERENT COUNTRIES JUST LATINOS AND ALSO WE HAVE DIFFERENT LEVELS OF, 60% OF LATINO BUSINESS OWNERS WOULD PREFER TO LEARN THESE SUBJECTS IN SPANISH.

>> WE WILL HEAR A LOT MORE ABOUT THE NEW JERSEY SUTURE CHOICE PROGRAM IN THE MONTHS AHEAD.

INC. YOU SO MUCH TOM I GUESS WHAT'S COMING AT A VERY EXCITING TIME WHEN IT COMES TO RETIREMENT SECURITY IN NEW JERSEY AND A STEP IN THE RIGHT DIRECTION.

SO THANK YOU FOR ME.

>>> THANK YOU RHONDA.

THAT DOES IT FOR US TONIGHT.

IF ALL OF YOU CELEBRATE, THE ENTIRE TEAM AT NJ SPOTLIGHT NEWS WISHES YOU A VERY HEALTHY, SAFE AND MERRY CHRISTMAS.

THANK YOU FOR BEING WITH US TONIGHT AND HAVE A GREAT WEEKEND.

>>> THE MEMBERS OF THE NEW JERSEY EDUCATION ASSOCIATION, MAKING PUBLIC SCHOOLS GREAT FOR EVERY CHILD.

RWJ BARNABAS HEALTH, LET'S BE HEALTHY TOGETHER.

AND THE OCEAN WIND PROJECT AND PSEG CREATED TO CREATION OF A NEW LONG-TERM SUSTAINABLE CLEAN ENERGY FUTURE FOR NEW JERSEY.