Voluntary, portable, guaranteed retirement plan moves to Assembly
This is the first big step in addressing the retirement savings crisis facing Californians
Update as of Wednesday, May 30 – 4:30 p.m.: SB 1234, a bill that gives California private sector workers a choice to participate in a portable, guaranteed retirement savings plan today passed the California Senate on a 23-13 vote. This is the first step to bring retirement security for all. The next step is the Assembly. Please call or email your Assemblymember!
SB 1234 – California Secure Choice Retirement Plan gives private sector workers a choice to participate in a guaranteed retirement savings plan. We need your help to provide Retirement Security for All California workers.
We have a retirement crisis in America. Too many people fear they will not be able to pay for food, health care and shelter during retirement. According to Senator De Leon, SB 1234’s sponsor, the bill addresses the “retirement tsunami” in California. Half of Californians face a retirement with incomes below 200% of the poverty level.
Six out of ten California workers do not have access to an employer sponsored retirement plan. For workers who do have access to a plan, the median retirement savings is only $20,000. Millions of Californians are facing a retirement in poverty.
The California Secure Choice Retirement Savings Plan (SB 1234-De Leon/Steinberg) offers private sector workers a guaranteed, portable and voluntary way to save for retirement. This retirement plan can be taken from job to job. Workers would contribute 3% of their wages through a payroll deduction and earn a return of 2-4% after inflation. CalPERS would invest money for this retirement plan.
This new retirement plan gives workers a choice to put their money into a secure plan and know their investment will be there when they retire. It’s time to let private sector workers have access to the same retirement security earned by public sector workers.