There is a bill coming that will help people working in small businesses to have a retirement program. Secure Choice Retirement Program, SB 1234 (de Leon) is now in print as a “spot”(placeholder) bill. If you’re interested in reading the whole thing go to: http://www.leginfo.ca.gov/pub/15-16/bill/sen/sb_1201-1250/sb_1234_bill_20160218_introduced.htm
This is AARP’s #1 priority for 2016. It will provide a more secure future for those who have not had access to a retirement program. This is not a Defined Benefit Plan; it is a Defined Contribution Plan. People do not opt into this program – they are automatically signed up but they can opt out. The reason for the bill:
In California 6.3 million private sector workers lack access to a workplace retirement plan.
Nearly half (47%) of California workers –public and private– will retire with incomes below 200% of the federal poverty level (about $22,000 a year).
75% of workers without access to a plan work for a company with 100 or fewer employees.
A large majority (64%) are people of color, with Latinos making up the largest share (46%) of that total.
We’re looking forward to this bill passing, not so much for those of us who are already retired, but the millions who would like to retire someday, and at this point, won’t have the money to do it.