AB 937, as introduced, Wieckowski. The California Secure Choice Retirement Savings Trust.
Existing law, contingent upon the receipt of sufficient funds to make the program operative, creates the California Secure Choice Retirement Savings Trust for the purpose of promoting greater retirement savings for California private employees in a convenient, voluntary, low-cost, and portable manner.
This bill would make technical, nonsubstantive changes to these provisions.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 100004 of the Government Code is
2amended to read:
(a) There is hereby established a retirement savings
4trust known as the California Secure Choice Retirement Savings
5Trust to be administered by the board for the purpose of promoting
6greater retirement savings for California private employees in a
7convenient, voluntary, low-cost, and portable manner. After
P2 1sufficient funds are made available for this title to be operative
2pursuant to Section 100042, the California Secure Choice
3Retirement Savings Trust, as a self-sustaining trust, shall pay all
4costs of administrationbegin delete onlyend delete out of moneys on depositbegin delete thereinend deletebegin insert in
5the trustend insert.
6(b) The board shall segregate moneys received by the California
7Secure Choice Retirement Savings Trust into two funds, which
8shall be identified as the program fund and the administrative fund.
9Notwithstanding Section 13340, moneys in the trust are hereby
10continuously appropriated, without regard to fiscal years, to the
11board for the purposes of this title.
12(c) Moneys in the program fund may be invested or reinvested
13by the Treasurerbegin insert,end insert or may be invested in whole or in part under
14contract with the Board of Administration of the Public Employees’
15Retirement System or private money managers, or both, as
16determined by the board.
17(d) Transfers may be made from the program fund to the
18administrative fund for the purpose
of paying operating costs
19associated with administering the trust and as required by this title.
20On an annual basis, expenditures from the administrative fund
21shall not exceed more than 1 percent of the total program fund.
22All costs of administration of the trust shall be paid out of the
23administrative fund. Operating costs associated with administering
24the trust do not include the procurement of private underwriting
25for the retirement savings’ return.
26(e) Any contributions paid by employees and employers into
27the trust shall be used exclusively for the purpose of paying benefits
28to the participants of the California Secure Choice Retirement
29Savings Program, for the cost of administration of the program,
30and for investments made for the benefit of the program.
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