Calif. lawmakers OK private-sector retirement plan

10:03 PM, Aug 31, 2012   |    comments
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SACRAMENTO, CA (AP) - California lawmakers have approved a bill that would create the nation's first state-run retirement program for private-sector workers.

The Assembly on Friday passed SB1234 on a 44-24 vote, returning it to the Senate for a final vote. Democratic supporters say the bill would establish the California Secure Choice Retirement Savings Program for nearly 7 million low-income workers whose private employers don't offer retirement plans.

It directs employers to withhold 3 percent of their workers' pay unless the employee opts out of the savings program. The program would be administered by a seven-member board chaired by the state treasurer.

Republicans say the program creates a new liability for the state because if the underwriter fails to meet investment targets.

San Francisco Democratic Assemblyman Tom Ammiano says it gives workers options.

The Associate Press

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