Retirement with Dignity for All Californians
SEIU 721 strongly supports laws that help private employers provide a stronger retirement benefit for their workers. Pensions - or guaranteed retirement benefits - are for everyone, not just union members. California State Senator Kevin de León has introduced groundbreaking legislation to address this issue.
SB 1234, the California Retirement Savings Act creates a comprehensive retirement savings plan for the seven million private sector workers without access to a workplace retirement plan. SB 1234 addresses the looming "retirement tsunami" represented by the massive shortfall that millions of Californians are realizing upon their retirement.
"California threatens to become home to a sea of discarded seniors unless we wake up and address the looming retirement tsunami," said Senator de León. "This bill allows people to take personal responsibility for their own retirement without cost to taxpayers. It will help us avoid potentially catastrophic conditions in California." According to experts, nearly 50% of middle-income Californians will retire at or near poverty given present conditions.
California workers in the private sector need a lifelong retirement savings system that provides them with the opportunity to build their assets and achieve financial stability in retirement. SB 1234 would provide a tool for the average worker to supplement their Social Security income by pooling employee and employer contributions into a professionally managed retirement fund. It would offer portable, efficient, defined benefit-type retirement plans with low costs due to economies of scale. If workers contributed just 3% of their earnings towards a retirement fund, the fund would generate an estimated $6.6 billion in the first year alone.
This legislation is also supported by small businesses, AARP, Congress of California Seniors and many more groups in addition to many California Assemblymembers and Senators.
For more information: http://sd22.senate.ca.gov/newsroom