In addition to the powers and authority granted to the board pursuant to Section 100010, the board shall have the power and authority to do the following:
(a) Cause the retirement savings program or arrangements established under the program to be designed, established, and operated, in a manner consistent with all of the following:
(1) In accordance with best practices for retirement savings vehicles.
(2) To encourage participation, saving, and sound investment practices, and appropriate selection of default investments.
(3) With simplicity, ease of administration for participating employers, and portability of benefits.
(b) Arrange for collective, common, and pooled investment of assets of the retirement savings program or arrangements, including investments in conjunction with other funds with which those assets are permitted to be collectively invested, with a view to saving costs through efficiencies and economies of scale.
(c) Disseminate educational information designed to educate participants about the benefits of planning and saving for retirement and information to help them decide the level of California Secure Choice Retirement Savings Program participation and savings strategies that may be appropriate for them.
(d) Disseminate information concerning tax credits available to small business owners for allowing their employees to participate in the program, and the federal Retirement Savings Contribution Credit (Saver’s Credit) available to lower and moderate-income households for qualified savings contributions.
(e) Submit progress and status reports to participating employers and eligible employees.
(f) If necessary, determine the eligibility of an employer, employee, or other individual to participate in the program.
(g) Evaluate and establish the process by which an eligible employee of an eligible employer is able to contribute a portion of his or her salary or wages to the program for automatic deposit of those contributions and the participating employer provides a payroll deposit retirement savings arrangement to forward the employee contribution and related information to the program or its agents. This may include, but is not limited to, financial services companies and third-party administrators with the capability to receive and process employee information and contributions for payroll deposit retirement savings arrangements or other arrangements authorized by this title.
(h) Design and establish the process for the enrollment of program participants.
(i) Allow participating employers to use the program to remit employees’ contributions to their IRAs on their employees’ behalf.
(j) Allow participating employers to make their own contributions to their employees’ IRAs, provided that the contributions would be permitted under the Internal Revenue Code and would not cause the program to be treated as an employee benefit plan under the federal Employee Retirement Income Security Act.
(k) Evaluate and establish the process by which an individual or an employee of a nonparticipating employer may enroll in and make contributions to the program.
(Amended by Stats. 2016, Ch. 804, Sec. 6. (SB 1234) Effective January 1, 2017.)
Last modified: October 8, 2018