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Lawmakers To Weigh California Private-Sector Retirement Plan

Alan Cordova / Flickr
 

Alan Cordova / Flickr

(AP) — California lawmakers and Gov. Jerry Brown will decide whether to go forward with a plan to automatically enroll private-sector workers in state-run retirement accounts.

A state board voted Monday to send lawmakers a series of recommendations for a program that's estimated to affect nearly 7 million Californians who don't have access to a pension or 401(k) at work.

Lawmakers voted in 2012 to study the idea. Lawyers and consultants determined that it's a legally and financially viable option to help prepare Americans for a financially stable retirement.

The proposal would require employers that don't offer retirement accounts to automatically enroll their workers in the state-run plan. Unless employees opt out, a percentage of their earnings would be deducted and held in lower-risk investments.