(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.