Gov. Brown’s budget proposal provides initial start-up for Secure Choice Retirement Savings Program

A program aimed at helping California’s private sector employees save for retirement received a needed infusion of start-up funding in Gov. Jerry Brown’s 2017-18 proposed budget last week.

The Secure Choice Retirement Savings Program, spearheaded by SEIU and signed into law last year, establishes a voluntary retirement savings plan for millions of private-sector, home-based and self-employed workers.

Gov. Brown’s budget proposal includes an initial $15 million as a General Fund loan to fund the necessary start-up and administrative costs to implement the program. Additional General Fund loans will be provided in future years as the program ramps up, the budget summary states.

According to a study by the program’s investment board, about 6.8 million workers currently lack access to a workplace retirement plan. Secure Choice offers all eligible workers an opportunity for retirement savings at a low cost.

“CFA worked alongside SEIU over the past four years to bring the Secure Choice legislation to the Governor’s desk,” said Jonathan Karpf, CFA’s Associate Vice President of Lecturers, North. “This will provide a modicum of retirement security for low wage workers, and is the first step in ultimately restoring retirement security for all Americans.”

For more about Secure Choice, click here.