California’s retirement program for employees who don’t have access to employer-sponsored benefits isn’t barred by federal benefits law, state officials say.
The California Secure Choice Retirement Savings Program—CalSavers—requires employers that don’t offer retirement benefits to set up automatic payroll deductions into individual retirement accounts for employees who want it. Several states—including Connecticut, Illinois, Maryland, and Oregon—have established similar programs.
Howard Jarvis Taxpayers Association, a California low-tax policy group, sued, arguing that it was barred by federal benefits law.
CalSavers creates an IRA program exempt from the Employee Retirement Income Security Act, California officials argued Nov. 15 in a brief...