Senate bill goal is retirement security for all

Too few Americans have any retirement security. Pensions are constantly under attack and private sector pensions have been replaced by risky and unsecure 401K plans. Many fear retiring in poverty.
It doesn’t have to be this way.
Senate Bill 1234 will create a retirement savings plan for California’s private sector workers who do not have access to retirement plans in their jobs.

The “California Secure Choice Retirement Savings Plan” would be affordable, voluntary, and portable — so you can take it from job to job.
Everyone deserves a retirement with dignity.

Will you retire with dignity?
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Will you be able to retire with dignity?

“We have a retirement savings crisis in California,” said 521 pension committee member Rachel Welch. “We are fortunate that our union negotiated a fair contract with the county that allows us to pay into our retirement fund that will support us when we are old and no longer able to work. But this is not the case for millions of Californians who work in the private sector. I support [SB 1234] that is making its way in the legislature that will create a retirement savings plan for private sector workers who don’t have a retirement savings plan through their jobs.”

Highlights of SB1234:

  • “Secure Choice” is a voluntary retirement savings plan with guaranteed benefits that private sector workers can take from job to job.
  • The plan gives workers a new, secure way of saving their hard earned money for their retirement.
  • Workers are auto-enrolled with a choice to opt out of the retirement plan.
  • Investment returns are guaranteed by pooling a group of insurance companies to back the benefit. There is NO RISK to the state.
  • The bill establishes individual savings accounts at NO RISK to the state. The accounts are NOT subject to federal or ERISA pre-emption.
  • Retirement security is critical to California’s future at a time when families are just getting by. Too many Californians fear they will not have enough retirement savings to pay for food, health care and shelter.
  • NO COST OR RISK to the employer except for administering a payroll deduction
  • Workers contribute 3% of their pay into the plan through payroll deduction
  • Personal retirement accounts would grow 2-4% (after inflation)
  • Secure Choice is an affordable, professionally managed retirement plan.
  • The plan could hire a retirement system like CalPERS to invest workers contributions and to keep fees low.

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