California Secure Choice Retirement Savings Investment Board

About the California Secure Choice Retirement Savings Investment Board

Program Information

Legislation enacted in 2012 (Senate Bill (SB) 1234, Chapter 734) authorized 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. Secure Choice would require private employers with five or more employees not currently offering a retirement savings plan to provide their employees access to, and payroll deductions for, Secure Choice retirement accounts. Implementation is contingent on enactment of subsequent legislation. Secure Choice would be administered through the State Treasurerís Office with oversight from the nine-member California Secure Choice Retirement Savings Investment Board (Board).

Before the Legislature can consider further legislation to implement Secure Choice, SB 1234 requires the Board to conduct a market analysis to determine whether the legal and practical conditions for implementation can be met. Funding for the market analysis must come from private nonprofit or for-profit entities, or from federal sources. 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 nine member board is comprised of the State Treasurer (Chair); the Director of Finance; the State Controller; an employee representative appointed by the Speaker of the Assembly; an individual with retirement savings and investment experience appointed by the Senate Committee on Rules; a small business representative appointed by the Governor; and three additional members appointed by the Governor.