AB 2940 Would Open CalPERS to Private Sector

Assembly Bill 2940, sponsored by Assemblyman Kevin de León, D-Los Angeles, would open CalPERS to the private sector:

AB 2940 would allow Californians whose employers don't offer retirement savings plans to put money into the California Employee Savings Program.

Employers without retirement plans could also participate.

The retirement plan, unlike 401(k) plans, could be taken by the worker from job to job. If the plan is approved by the Internal Revenue Service, CalPERS would administer it with fees paid by the account holders, at no expense to taxpayers.

An income test originally in the bill is being removed. Today the bill goes before the Assembly Committee on Public Employees, Retirement and Social Security. CalPERS is analyzing the bill and has not yet taken a position on it.

Links:

• Governor: Open CalPERS doors (Sacramento Bee)
• Text of AB 2940