For Small Business Owners In
California |
California Governor Gerry Brown signed into law a new
Retirement Plan for workers in the private sector.
This bill establishes the California Secure Choice
Retirement Savings Program to operate as a
state-administered retirement savings plan for private
sector workers who do not participate in any other type of
employer-sponsored retirement savings plan.
|
It requires employers to withhold 3%
of the pay of those employees who elect to participate in
the program. It
provides that an employer who fails to allow its employees
to participate in the Program after being notified of
failure to comply by the Employment Development Department
(EDD) shall pay a penalty, as specified.
|
It requires each eligible employee
to be enrolled in the Program unless the employee opts out.
|
Employers are not required to
provide matching funds to the plan and the state does not
have any liability for the payment of the retirement savings
benefit guaranteed to Program participants.
Any financial liability for the payment of benefits
in excess of funds available shall be borne by insurance
underwriters.
|
Read the
whole bill at
California Secure Choice
Retirement Savings Plan.
|
Sources:
California Secure Choice
Retirement Savings Plan
By Tim
Miller
|