CalPERS for Non-Governmental Employees?

Published on September 2nd, 2012

I’ve always said that the problem is not the pensions, per se, but that more people need them. This is a step toward improving retirement security for non-governmental California workers.

This proposal…just passed by the CA assembly and sent to the Governor for signature…makes some sense to me.

According to the Bloomberg article, About 6.3 million Californians, most of them making less than $46,420 a year, aren’t covered by an employer-provided retirement plan, according to a June 2012 study by the Labor Center of the University of California, Berkeley. De Leon cited the research in promoting his legislation.

The Assembly voted 44-24 for the plan aimed at businesses with five or more employees that don’t offer pensions or 401(k) savings programs. Companies would be required to contribute 3 percent of a worker’s salary to the retirement account. Workers would be enrolled unless they choose to opt out.

The proposal by state Senate President Pro Tem Darrell Steinberg of Sacramento and Senator Kevin de Leon of Los Angeles, both Democrats, passed the upper chamber 23-13 in May. The bill was returned to the Senate late today for concurrence on amendments made in the Assembly before being sent to the governor.

Comments are closed.