Bill Would Give Retirement Plan To Private Sector Workers
A bill sitting on California Governor Jerry Brown’s desk could provide a retirement savings plan for private sector employees who don’t have one.
It passed on a party line vote the last day of the legislative session, after the Governor requested changes.
The bill establishes a board to make sure it doesn’t cost taxpayers money. And last minute changes to the bill give the legislature final authorization.
Democratic Senator Kevin DeLeon (Day-lee-OWN) authored the bill. He says more than seven million private sector employees don’t have access to a retirement plan.
“If we can do it and design it in a way that brings real savings at a very low cost that’s guaranteed that provides no liability to the state and no subsidy from the taxpayer the question is why not do it.”
Three percent of workers’ wages would automatically be deducted from their paychecks, but workers could opt out.
Republicans and the California Chamber of Commerce opposed the bill. They say it opens up the state to more costs and liabilities.