In 2016, Governor Brown signed Senate Bill 1234 requiring the state’s Secure Choice Retirement Savings Investment Board to begin development of a workplace retirement savings plan, known as Secure Choice, for private sector workers whose employers do not offer a retirement plan. The plan will be required to protect employers from any liability or fiduciary responsibilities, exempt employers from the Employee Retirement Income Security Act, and have minimal administrative requirements. Once operational, employers with five or more employees will be required to provide a retirement plan for their workers or enable their workers to make a direct payroll contribution into their personal Secure Choice Individual Retirement Account.
Important: Employers are not required to take any action until this program is operational, which is expected to be in 2019. For more information, visit: treasurer.ca.gov/scib.