STATEMENT: Lt. Governor Newsom on Signing of Retirement Savings Legislation
(Sacramento) - California Lt. Governor Gavin Newsom issued the following statement in response to Governor Brown's decision to sign SB 1234 (De León), which will help millions of California workers save for retirement:
"This bill advances the crucial work that began in 2012 to ensure that almost seven million workers in our state have access to a retirement savings plan. The economic recovery has been a spectator sport for too many, leaving many workers in need of assistance to save for retirement. This bill does just that."
Under SB 1234, workers who do not have a workplace retirement plan will automatically be enrolled in a new retirement account called the California Secure Choice Retirement Savings Trust. This fund will invest worker contributions in a diversified portfolio that focuses on long-term financial growth. The retirement program is voluntary and workers can choose to opt-out at any time. The legislation prohibits the state or employers from incurring any liabilities associated with the new program.