Bill
S 4878
Creates the NJ Workplace Skills Savings Program: worker accounts with up to $1,000/year, matched dollar-for-dollar by the state, funds used for training and credentials.
Aims and purpose
- Creates the New Jersey Workplace Skills Savings Program to enable workers to build a self-directed fund for employment-related training and career development.
- Establishes a corresponding trust (New Jersey Workplace Skills Savings Trust) managed by the Office of the Treasurer, with the Department of Labor and Workforce Development (DOLWD) administering the program.
Key provisions and mechanisms
- Program structure
- The program operates as a trust with individual accounts for participating employees (enrollees).
- An account is opened by an employee who wants to pay for job training services; the employee becomes the beneficiary.
- Contributions and state matching
- An enrollee may contribute up to $1,000 per calendar year into their account.
- The State provides a dollar-for-dollar match to the maximum annual contribution of $1,000.
- There is no interest earned on individual accounts.
- Balances in accounts are exempt from creditor claims.
- If a withdrawal is nonqualified, the department will set a penalty.
- If an enrollee ceases participation, the department will establish a process to return deposits within 60 days, but State matching funds are not refundable.
- Eligible uses
- Funds may be used for: apprenticeship costs; licensing exams or certification fees for employment-related purposes (e.g., CDL exams, professional licenses, certification exams for apprenticeships, teacher licensure exams); retraining programs for unemployed workers; formal classroom education related to job training (vocational schools, technical schools, union training, community colleges); and other worker training-related expenses as allowed by regulation.
- Administration and governance
- DOLWD administers the program and can act as trustee, adopt rules, provide forms, manage participation processes, select an investment manager, monitor contractors via audits, assess administrative fees, and impose penalties for nonqualified withdrawals.
- The Treasury administers the Trust, holding accounts and managing financial responsibilities.
- The program will comply with federal regulations and IRS codes.
- Oversight and reporting
- Annual audited financial reports (GAAP) to the Governor and Legislature, covering the program’s operations for the prior calendar year.
- Annual summary report detailing benefits, enrollment, deposits, State matching funds, approved training expenses, and withdrawals.
- Financial impacts and appropriation
- An appropriation of $25 million from the General Fund to fund program operations and matching funds.
- Effective date and implementation
- Effective January 1, 2027, with provisions allowing anticipatory administrative actions for implementation.
Administrative details and timing
- The Department of Labor and Workforce Development and the Treasurer will oversee the program via a dedicated trust and related accounts.
- The act requires annual reporting and sets up the framework for ongoing administration, investment oversight, and compliance with applicable regulations.
Legislative status, sponsorship, and related actions
- Status: REFERRED TO DISABILITIES
- Introduced: November 17, 2025
- Sponsors: Patricia Fahy (primary)
- Legislative actions show prior referrals in 2025, with the bill introduced in November 2025.
Notes
- The bill text emphasizes workforce training and credentials, funded through employee contributions with State matching, rather than direct pay-for-performance reimbursements for residential habilitation or similar services. The title and summary here reflect the introduced content focusing on workplace skills savings and training financing.
Compiled from official sources — confirm details with the bill’s official record.
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