Feds Call on 9th Cir. to Strike California Retirement Program

June 22, 2020, 2:35 PM

The Labor Department called on the U.S. Court of Appeals for the Ninth Circuit to invalidate California’s new auto-retirement program, arguing it’s preempted by the federal Employee Retirement Income Security Act.

The CalSavers Retirement Savings Program forces employers to either offer an ERISA-covered retirement plan or contribute to the CalSavers arrangement, the DOL said in a June 19 amicus brief. CalSavers is preempted by ERISA because the existence of ERISA plans are essential to its operation, the department said.

The Ninth Circuit has been asked to weigh in on CalSavers after a federal judge in Sacramento rejected a legal challenge ...

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