SACRAMENTO, CA – In Sunday’s newspaper, the venerable New York Times editorialized in support of Senate Bill 1234 (SB 1234) – the California Secure Choice Retirement Savings Trust – introduced by Senator Kevin de León (D-Los Angeles) and co-authored by California Senate President Pro Tempore Darrell Steinberg (D-Sacramento).
From the editorial titled, California Takes On the Retirement Crisis, “When you think of California as a trendsetter, retirement policy is probably not the first thing that comes to mind, but that may soon change. A bill recently passed by the California Legislature creates the foundation for a savings plan to cover the state’s 6.3 million private-sector employees who have no retirement coverage at work. The plan also could serve as a model for addressing a national problem: Americans for the most part are ill-prepared for retirement, either because they have risky 401(k) plans or inadequate savings or no retirement coverage at all. Memo to Gov. Jerry Brown: Please sign this bill.”
“SB 1234 addresses the 6.3 million Californians, mostly lower and middle-income workers, who have no access to a retirement plan at work, by providing them a portable and reliable retirement plan that will serve as a modest supplement to Social Security,” said Senator De León. “If we don’t offer this, most of these people will retire into poverty putting a further strain on our already scarce public resources.”
The editorial closed with, “The California plan also represents the wave of the future. Eleven states have debated similar plans, with Massachusetts recently adopting a version for employees in the nonprofit sector. In Connecticut, the House recently passed legislation to study how a new system could work in that state, though the Senate defeated the measure. At this point, however, even states that have taken steps to address the retirement crisis are watching what California does. We hope it leads the way.”
Governor Jerry Brown has until Sunday, September 30, 2012 to sign bills into law.
The full New York Times editorial can be found online: http://www.nytimes.com/2012/09/23/opinion/sunday/california-takes-on-the...