Las Vegas Sun

April 16, 2024

Calif. creates state-run private retirement plan

California Gov. Jerry Brown has signed legislation that would create the nation's first state-run retirement savings program for private-sector workers, over the objection of critics who said it creates a new liability for taxpayers.

The bill would establish the California Secure Choice Retirement Savings Program for more than 6 million lower-income, private-sector workers whose employers do not offer retirement plans.

The program directs employers to withhold 3 percent of their workers' pay unless the employee opts out of the savings program every two years. It would be administered by a seven-member board chaired by the state treasurer.

State Sen. Kevin De Leon, D-Los Angeles, introduced the bill earlier this year in response to what he called the "looming retirement tsunami."

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