The plan works like a 401(k), with employers setting up a payroll deduction for employees who would automatically contribute 3 percent of their salaries to an IRA. Employees can adjust the contribution amount or even opt out

Employers are not required to match contributions.

The legislation, which has already passed the state assembly, has predictably enough met with resistance by the New Jersey Business and Industry Association, which has said the plan will increase the cost of doing business and should be completely voluntary, rather than mandatory.

In addition, it has drawn caveats from the American Council of Life Insurers concerning startup expenses and potential losses in tax collections. Another worry voiced by a state representative is potential liability for businesses.

The Department of Labor in November announced proposed "safe harbor" guidance that would allay at least that last concern, as more and more states opt to mandate retirement savings programs for state residents who have no employer-sponsored plan.

One thing that the business community in the state might want to keep in mind is that DOL's guidance requires that participation be mandatory—otherwise the safe-harbor protection goes away.

Earlier in the year, the Government Accounting Office came out in support of states implementing retirement savings programs for workers who have no access to an employer-sponsored plan.

A GAO report found a strong statistical argument for state initiatives. In fact, the agency suggested that Congressional action, combined with regulatory revisions from the Department of Labor,are needed to help states put such programs in place for private-sector workers who lack access to workplace retirement plans.