Posts Tagged: private-sector
The state Treasurer's headquarters in Sacramento, where CalSavers is based. (Photo: Kit Leong, via Shutterstock)
A new state workplace retirement savings program, CalSavers, will open to an estimated 250,00 to 300,000 employers on July 1 — offering an automatic IRA payroll deduction for the 7.5 million California workers with no retirement plan on the job. The massive program, expected to handle billions in savings, is voluntary for employees.
The road ahead upon retirement. (Photo illustration: Gustavo Frazao, via Shutterstock.)
Gov. Brown has signed historic legislation to set up California’s first state-run pension plan for private-sector workers, allowing millions of employees to continuously build a retirement nest egg regardless of where they work. The governor’s decision means California joins seven other states that offer similar programs, although California’s plan, called Secure Choice, will automatically enroll about 6.8 million workers.
Some thought an appeal of a court ruling blocking a key part of a San Jose pension reform could lead to a high court review of the “California rule,” an issue in an initiative ballot summary issued last week by Attorney General Kamala Harris. But dropping an appeal of the Superior Court ruling is part of a settlement of union suits against the voter-approved pension reform that could soon be implemented by court action
Calpensions: President Obama said he has directed his labor department to propose rules showing states how to create what in California could be an “automatic IRA,” a payroll deduction that puts money into a tax-deferred savings plan unless workers opt out. The rules are expected to answer a key question: Is Secure Choice exempt from a federal retirement law, ERISA, that not only has employer administrative costs but may also expose employers to liability for failed investments and other problems?