A plan to create a state-run retirement program for nearly all private workers in California passed out of the Legislature late Wednesday and now awaits approval by Gov. The Senate, on the last day of the two-year legislative session, approved Senate Bill 1234, which requires all California companies with at least five employees to either offer their own retirement savings plan or enroll workers in the new California Secure Choice Retirement Savings Program. Workers could take their accounts with them when they change jobs and would face a penalty for withdrawing money before retirement. “To start a retirement savings program from scratch will take some time,” said California Deputy Treasurer Grant Boyken. It called Wednesday’s passage a landmark step toward making retirement savings a universal benefit despite no requirement for employer contributions.

Source: Los Angeles Times September 01, 2016 20:56 UTC