SACRAMENTO (AP) — California has launched a state-sponsored retirement plan targeting employers who don’t have options for their workers.
It’s part of a state law requiring companies with at least five California-based employees to offer a retirement plan. As many as 300,000 businesses must comply by 2022.READ MORE: Lockdown-Violating Underground Gatherings Investigated Over Recent Spate of San Jose Shootings
One option is CalSavers Retirement Savings Program, which launched July 1. Companies who sign up for the plan would supply a list of their employees. CalSavers would automatically enroll them and then employers would deduct 5% from their paychecks into a retirement account. Workers can opt out of the plan or choose a different savings rate.
California Treasurer Fiona Ma says the program will help people “retire with dignity.”READ MORE: The Game Changer: New Test Helps Doctors Find Hidden Prostate Cancer
CalSavers first launched November 2018 with a pilot program .
A recent study by the University of California-Berkeley says half of the state’s private sector workers have no retirement assets.MORE NEWS: Oakley School Board Interim Trustees Vote to Fill Vacant Seats; Reject Special Election
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