California's New Retirement Plan Puts Out RFI

It is also requesting input about how to proceed with a statutorily required market and feasibility study. Before the California State Legislature can consider further legislation to implement Secure Choice, SB 1234 requires the board to conduct a market analysis and feasibility study to determine whether the legal and practical conditions for implementation can be met. Funding for the market and feasibility study must come from private nonprofit or for-profit entities, or from federal sources, as the use of state funds for the study is prohibited. Upon completion of the study, the board will provide the results and its recommendations to the legislature, and await further authorizing legislation to implement the program.

The SCIB was formed as a result of legislation enacted in 2012 (specifically California State Senate Bill (SB) 1234, Chapter 734), which authorized the establishment of the California Secure Choice Retirement Savings Program (Secure Choice). If implemented, Secure Choice would provide a voluntary, low-risk, automatic-enrollment retirement savings plan for an estimated 6.3 million California workers who currently lack access to retirement savings plans through their jobs (see “Calif. Senate Approves Government-Run Private Workers Retirement Plan”).

Staff at the SCIB meeting September 4 presented a timeline under which Secure Choice would become operational in early 2016, but the board directed staff to come back with a more aggressive implementation schedule. All agenda items from the meeting can be found here.

Future updates can be received by going to the SCIB’s web page and clicking on “Sign Up to Receive Secure Choice Information.” Additional informational is also available at bill.ainsworth@treasurer.ca.gov.