SACRAMENTO, CA (AP) - Opponents of a bill that would create the nation's first state-run retirement program for private-sector workers say California taxpayers cannot afford to take on the potential for billions of dollars in new liabilities at a time when the state's public pension systems already are facing massive shortfalls.
Businesses, insurance companies and financial services firms testified Wednesday against SB1234 by Democratic Sen. Kevin De Leon of Los Angeles. His bill would create the California Secure Choice Retirement Savings Program for nearly 7 million low-income workers whose private employers don't offer retirement plans.
The bill was held by the Assembly Appropriations Committee.
Nicole Rice, representing the California Manufacturers and Technology Association, says California already is carrying "pension debt that we owe to public employees at the tune of billions of dollars."
The Associated Press