California May Offer State-Run IRA For Private-Sector Employees
SACRAMENTO (CBS / AP) – Californians whose employers don't already offer a way to prepare for retirement would be automatically enrolled in a state-run savings plan under a bill advancing in the Legislature.
Democratic Senate President Pro Tem Kevin de Leon of Los Angeles is seeking to establish the program for an estimated 6.8 million California workers who can't invest through their employers. People could choose to opt out.
The Assembly voted 47-23 Thursday to send SB1234 to the Senate.
A state board created four years ago determined that the plan is generally legal and financially workable. The U.S. Department of Labor gave states an official go-ahead Thursday to create payroll deduction IRA programs like the one California is eyeing.
Business organizations say it could burden the state with undetermined costs and employers with liabilities.
© Copyright 2016 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.
