California Senate on Legislation Creating State-Run Retirement Savings Plans

SIFMA and 10 other associations provide comments to the California State Senate on legislation that would create a state-run retirement savings plan for private sector workers and guarantees a set rate of return on investment, SB 1234. The bill would mandate employers with five or more employees to automatically enroll their workers into the state-run plan unless a retirement savings option is already available at the workplace with penalties for non-compliance. The groups point out California is already facing a massive unfunded pension liability for its public sector workers. In addition, the groups caution that this is not the time for the state to create and assume liability for any new plan for private sector employees, much less one which guarantees a set rate of return on investment.