De León
Author
Existing federal law provides for tax-qualified retirement plans and individual retirement accounts or individual retirement annuities by which private citizens may save money for retirement. This bill would enact the California Secure Choice Retirement Savings Trust Act, which would create the California Secure Choice Retirement Savings Trust to be administered by the California Secure Choice Retirement Savings Investment Board, which would also be established by the bill. The bill would require eligible employers, as defined, to offer a payroll deposit retirement savings arrangement so that eligible employees, as defined, could contribute a portion of their salary or wages to a retirement savings program account in the California Secure Choice Retirement Savings Program, as specified. The bill would require eligible employees to participate in the program, unless the employee opts out of the program, as specified. The bill would specify risk management and investment policies that the board would be subject to regarding administration of the program. The bill would require a specified percentage of the annual salary or wages of an eligible employee participating in the program to be deposited in the California Secure Choice Retirement Savings Trust, which would be segregated into a program fund and an administrative fund, both of which would be continuously appropriated to the board for purposes of the act. The bill would limit expenditures from the administrative fund, as specified. The bill would also authorize the board to establish a Gain and Loss Reserve Account within the program fund. The bill would, contingent upon sufficient interest and funding by vendors, as specified, require the board to establish a Retirement Investments Clearinghouse on its Internet Web site and a vendor registration process through which information about employer-sponsored retirement plans, and payroll deduction individual retirement accounts and annuities offered by private sector providers is made available for consideration by eligible employers. The bill would require the opt-out form disseminated by the Employment Development Department to be used to create an option for employees to elect to opt out of the program, as specified. The bill would, commencing 6 months after the program is ready to proceed, require the Employment Development Department to assess a penalty on any eligible employer that fails to make the program available to eligible employees, as specified. The bill also would make a statement of legislative findings. The bill would provide that the state would have no liability for the payment of the benefits under the program, as specified. The bill, upon sufficient funds being made available through a nonprofit or private entity or federal funding, would require the board to conduct a market analysis to determine whether the necessary conditions for implementation can be met, as specified. The bill would require moneys made available to conduct the market analysis to be deposited in the Secure Choice Retirement Savings Program Fund which would be created in the State Treasury. The bill would provide that the operational provisions of the California Secure Choice Retirement Savings Trust Act shall be operative only if the board determines that, based on the market analysis, the provisions will be self-sustaining, and sufficient funds are made available through a nonprofit or private entity, federal funding, or the annual Budget Act, as specified, to allow the board to implement the program until the trust has sufficient funds to be self-sustaining. The bill would require the board to ensure that an insurance, annuity, or other funding mechanism is in place at all times that protects the value of individuals' accounts and protects, indemnifies, and holds the state harmless at all times against any and all liability in connection with funding retirement benefits pursuant to these provisions. The bill would prohibit the board from implementing the program if the IRA arrangements offered fail to qualify for the favorable federal income tax treatment ordinarily accorded to IRAs under the Internal Revenue Code, or if it is determined that the program is an employee benefit plan under the federal Employee Retirement Income Security Act of 1974. Existing law establishes the Board of Administration of the Public Employees' Retirement System and vests the board with various powers and duties. This bill would authorize that board to administer funds in the California Secure Choice Retirement Savings Trust, as specified.
Chaptered by Secretary of State. Chapter 734, Statutes of 2012.
Approved by the Governor.
Enrolled and presented to the Governor at 11 a.m.
Read third time. Passed. (Ayes 48. Noes 29. Page 6763.) Ordered to the Senate.
Assembly amendments concurred in. (Ayes 25. Noes 13. Page 5114.) Ordered to engrossing and enrolling.
In Senate. Concurrence in Assembly amendments pending.
Read second time. Ordered to third reading.
Read second time and amended. Ordered to second reading.
From committee: Do pass as amended. (Ayes 12. Noes 5.) (August 16).
Set, first hearing. Referred to APPR. suspense file.
From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 2.) (July 3). Re-referred to Com. on APPR.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on P.E., R. & S.S.
From committee: Do pass and re-refer to Com. on P.E., R. & S.S. (Ayes 5. Noes 2.) (June 20). Re-referred to Com. on P.E., R. & S.S.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. & E.
Re-referred to Coms. on L. & E. and P.E., R. & S.S.
Referred to Coms. on P.E., R. & S.S. and L. & E.
Read third time. Passed. (Ayes 23. Noes 13. Page 3716.) Ordered to the Assembly.
In Assembly. Read first time. Held at Desk.
Read second time and amended. Ordered to third reading.
From committee: Do pass as amended. (Ayes 5. Noes 2. Page 3593.) (May 24).
Set for hearing May 24.
Placed on APPR. suspense file.
Set for hearing May 14.
Read second time and amended. Re-referred to Com. on APPR.
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 1. Page 3310.) (April 25).
Set for hearing April 25.
From committee: Do pass and re-refer to Com. on L. & I.R. (Ayes 3. Noes 1. Page 3190.) (April 16). Re-referred to Com. on L. & I.R.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. & I.R.
Set for hearing April 16.
Hearing postponed by committee.
Set for hearing April 9.
From committee with author's amendments. Read second time and amended. Re-referred to Com. on P.E. & R.
Referred to Coms. on P.E. & R. and L. & I.R.
From printer. May be acted upon on or after March 25.
Introduced. Read first time. To Com. on RLS. for assignment. To print.
| Bill Text Versions | Format |
|---|---|
| SB1234 | HTML |
| 02/23/12 - Introduced | |
| 03/27/12 - Amended Senate | |
| 04/17/12 - Amended Senate | |
| 05/02/12 - Amended Senate | |
| 05/29/12 - Amended Senate | |
| 06/13/12 - Amended Assembly | |
| 06/27/12 - Amended Assembly | |
| 08/20/12 - Amended Assembly | |
| 09/10/12 - Enrolled | |
| 09/28/12 - Chaptered |
| Document | Format |
|---|---|
| No related documents. |
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