California Secure Choice Retirement Savings Investment Board
Secure Choice Goal
- The Secure Choice program will be overseen by a nine-member board composed of the State Treasurer, the State Controller and representatives of the financial industry, small business, employers and employees.
- The IRA products 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.
- Enables employees to make an automatic payroll contribution into their personal IRA account with the option to opt-out at any time.
- Provides for an 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.
- Employees can contribute to their account throughout their working life.