Legislation Implementing the Secure Choice Retirement Savings Program Will Help Small Businesses Compete in California
Statement from Mark Herbert, Small Business Majority’s California Director, on the governor’s signing of the California Secure Choice Retirement Savings Program (SB 1234) today and how the program will benefit small businesses
Gov. Jerry Brown signed SB 1234 into law today to implement the California Secure Choice Retirement Savings Program, which will be a boon for small businesses. Too many small businesses can’t afford to offer a retirement plan because of cost barriers, which puts them at a competitive disadvantage when it comes to recruiting and retaining talented employees. The California Secure Choice Retirement Savings Program will offer a simple and affordable way to solve this problem.
The California Secure Choice Retirement Savings Program will create a portable retirement savings program that all workers can access, which will allow small business owners and their employees to start saving for retirement without putting additional liability on employers. Participation is voluntary, and employers are not required to contribute toward employees’ savings plans. The contributions are automatically deducted from payroll at no added cost to business owners.
Nationally, only 14 percent of small businesses offer retirement plans – but not necessarily because they don’t want to offer them. For many small businesses, retirement plans are simply out of reach because of barriers like complicated paperwork and high costs. This puts them on an unequal playing field with larger businesses that typically can afford to offer retirement plans.
It should come as no surprise then that polling from Small Business Majority and AARP found two-thirds of small business owners in California support a state retirement savings program that would help small businesses and their employees save for the future, and nearly three-fourths of respondents think offering such a program would give their business a competitive edge.
I was honored to join Governor Brown as he signed this bill today. SB 1234 will help level the playing field for small businesses that struggle to offer retirement plans, and its passage will greatly benefit California’s small business owners and their employees.
Small Business Majority was founded and is run by small business owners to focus on solving the biggest problems facing small businesses today. Since 2005, we have actively engaged small business owners and policymakers in support of public policy solutions, and have delivered information and resources to entrepreneurs that promote small business growth and drive a strong economy. We regularly engage our network of 50,000 small business owners and more than 5,000 business organizations, along with a formal strategic partnership program of more than 145 business organizations, enabling us to reach more than 500,000 entrepreneurs. Our extensive scientific polling, focus groups and economic research help us educate and inform policymakers, the media and other stakeholders about key issues impacting small businesses and freelancers, including access to capital, taxes, healthcare, retirement, entrepreneurship and workforce development. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.