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Can someone explain what exactly Secure Choice is?

JHabsJHabs Unconfirmed, Member
edited December 2018 in Retirement

I know it's some kind of Retirement Program, but I don't understand why it's necessary.

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Answers

  • JHabsJHabs Unconfirmed, Member

    @Brian_SBM said:
    The majority of small businesses don’t offer retirement benefits to their employees because it's too expensive and their firms are often too small to have a human resources/administrative person who can manage a plan. This puts them at a disadvantage when it comes to attracting and acquiring talent.

    Some states, including California and Illinois, have developed Secure Choice programs. These state-created retirement programs for private-sector workers help level the playing field between small businesses that want to offer retirement benefits but can’t, and their larger counterparts that can.

    California, for instance, just launched its program, called CalSavers. Workers that don't have access to an employer-based retirement plan can enroll in CalSavers. It's free for the business owner; they just have to enroll their workers in CalSavers. CalSavers works like an IRA for the enrolled workers, and will follow them if they leave their current job.

    Thanks Brian! This is really helpful.

  • Mark_SBMMark_SBM California Director Moderator mod

    If you operate your business in California or know someone who does, we'd love to invite them to participate in the CalSavers pilot. Fill out this form and we will follow-up with you. http://go.smallbusinessmajority.org/l/229072/2018-09-10/3y76s

  • FamilyForcesFamilyForces Executive Director Member

    It's my understanding that one of the requirements to participate in CalSavers is that the business needs to have 5 or more employees. Are there any options for a business with less than 5 employees?

  • Bianca_SBMBianca_SBM Northern CA Outreach Manager Moderator mod

    You're partially right, @FamilyForces! CalSavers is designed for businesses with 5+ employees. However, if you have less than 5 employees, you can facilitate contributions into the Program if an employee of yours creates a CalSavers account on their own as an individual, and approaches you, the employer, to facilitate a paycheck contribution. Then, you can facilitate other employee CalSavers contributions.

    Where are you located? I'm happy to chat one-on-one.

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