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AARP, STATE TREASURER URGE U.S. SENATE TO PROTECT RETIREMENT SECURITY FOR CALIFORNIA WORKERS

FOR IMMEDIATE RELEASE                              CONTACT:  Hilda Marella Delgado

Monday, March 6, 2017                                                (626) 429-7072, hdelgado@aarp.org

Pasadena, Calif. After the U.S. House of Representatives recently fast-tracked a measure that aims to prevent states from creating their own workplace savings programs, AARP and State Treasurer John Chiang today held a press conference urging the U.S. Senate to defeat the legislation and thereby protect the ability of millions of California workers to save for a secure retirement through the California Secure Choice Retirement Savings Program.

The Congressional Review Act, House Joint Resolutions 66 and 67, were recently passed by the U.S. House of Representatives. These resolutions are intended to overturn a 2016 Department of Labor rule that reaffirms state's legal authority to support private-sector savings programs for individual employees.

At stake is the financial security of 55 million American workers, including 7 million in California, who still do not have the ability to save for retirement through their own paychecks.

In 2016, the California Legislature passed and Governor Brown signed SB 1234 (de Leon), which established the California Secure Choice Retirement Savings Program, which, when implemented, will allow small businesses to offer their employees access to an automatic-savings program, with no liability for returns or performance. Workers will be automatically automatically enrolled in Secure Choice, but can opt-out at any time. The accounts will be portable and solely-owned by the individual. The program was championed by State Senate President pro Tem Kevin de Leon and State Treasurer John Chiang with strong support from AARP and a coalition of business and and consumer organizations.

“The Secure Choice Program is a win-win for employers and employees, and California is once again leading the way for other states in helping workers build a secure retirement,” said AARP California State Director Nancy McPherson. “Congress should support these important state savings programs, not try to stop them. We urge the Senate, especially Senators Feinstein and Harris, to protect the retirement security of millions of hard-working California by rejecting the Congressional Review Act.”

“There is a retirement crisis in our country. Secure Choice helps address this crisis so that workers can retire with dignity,” Treasurer Chiang said. “What Congress is considering defies common sense and needlessly injects uncertainty into the business community.”

AARP has sent letters to all the members of the California Congressional delegation expressing its strong opposition to the Congressional Review Act, and will continue putting pressure on the U.S. Senate to reject this resolution. Treasurer Chiang has spoken with other state treasurers, senators, and members of Congress about the vital need for states to retain the ability and flexibility to find unique solutions to our country’s retirement savings crisis.

“Critics contend a private-sector solution to this crisis is preferred. However, the private sector has not been able to find a retirement solution for over half of workers in California. Secure Choice – a public-private partnership – will allow the private sector greater access to serve these workers,” Chiang said.

Seven states already have approved private sector workplace programs – California, Oregon, California, Maryland, Connecticut, Washington, and New Jersey.

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