California Secure Choice Retirement Savings Investment Board

Secure Choice Goal

Safe

  • The Secure Choice program is overseen by a nine-member board composed of the State Treasurer, the State Controller, the Director of Finance and representatives of the financial industry, small business, employers and employees.
  • The investment options will be limited to low-risk and low-fee choices, representing the industry’s best practices for a sound retirement.
  • The Board will be required to maintain a balanced investment portfolio that provides assurance that no single investment or class of investments will have a disproportionate impact on the total portfolio.
  • The Board’s risk management and oversight program must ensure that risks taken are prudent and properly managed.
  • The investment manager will be required to report publicly monthly to the Board the types of and dollar amount of the investments in the fund.
 

Simple

  • Enables employees to make an automatic payroll contribution into their personal IRA account with the option to opt-out at any time.
  • Allows for optional automatic escalation of payroll contribution of 1% annually up to 8% unless the employee wants to contribute at a lower level.
  • Enables employers to offer employees access to an IRA account with no fiduciary responsibility and very limited administrative responsibility on the part of the employer.
 

Portable

  • Employees can contribute to their account throughout their working life.