|Published:||Sep 28, 2012 7:22 PM EDT|
|Updated:||Sep 29, 2012 6:31 AM EDT|
SACRAMENTO, Calif. (AP) - California Gov. Jerry Brown has signed legislation that would create the nation's first state-run retirement savings program for private-sector workers, over the objection of critics who said it creates a new liability for taxpayers.
The bill would establish the California Secure Choice Retirement Savings Program for more than 6 million lower-income, private-sector workers whose employers do not offer retirement plans.
The program directs employers to withhold 3 percent of their workers' pay unless the employee opts out of the savings program every two years. It would be administered by a seven-member board chaired by the state treasurer.
State Sen. Kevin De Leon, D-Los Angeles, introduced the bill earlier this year in response to what he called the "looming retirement tsunami."