California lawmakers passed a bill on Aug. 31 that would require certain private-sector employers to arrange for automatic payroll deposits into employee retirement savings accounts.
The California Secure Choice Retirement Program (S.B. 1234) has been implemented in stages, explained Alan Cabral, an attorney with Seyfarth Shaw in Los Angeles. “The program would apply to employers with five or more employees and without any other retirement plan,” he said.
If the bill is signed by Gov. Jerry Brown, covered employees would be automatically enrolled and would have the right to opt out of the program.
