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California’s New State-Sponsored Retirement Program to Debut Soon

In September 2016, the California legislature amended the California Secure Choice Savings Trust Act of 2012 (“Secure Choice”). This law will eventually require employers with at least five employees, and which do not offer employer-sponsored retirement benefits, to establish automatic payroll deductions for their employees to participate in the Secure Choice retirement savings plan. Employers will only act as intermediaries and remit the payments to the state, which will administer the program. The state has already established the California Secure Choice Retirement Savings Investment Board to administer the program.

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