California Senate Advances Retirement-Related Bills

The California Senate has approved two bills relevant to retirement plan coverage in California and has advanced them to the state Assembly. 

Expanding CalSavers

SB 1126, a measure that would expand the definition of “eligible employer” for purposes of the CalSavers Retirement Savings Trust Act—the measure that establishes the CalSavers Retirement Savings Program and the CalSavers Retirement Savings Trust—is advancing. 

More specifically, the bill would the definition of “eligible employer” from a person or entity that has at least five eligible employees to a person or entity that has (1) at least one eligible employee and that (2) satisfies the requirements to establish or participate in a payroll deposit retirement savings arrangement.

The Senate Labor, Public Employment and Retirement Committee approved the bill on April 27; the state Senate did so in a 27-9 vote on May 23. The bill was sent to the Assembly the next day; it was referred to the Committee on Labor and Employment, which approved it on June 15 in a 5-1 vote and sent it to the Committee on Appropriations.  

Charter Schools

The Senate also has approved SB 1343, a measure that would require a charter school initially authorized to commence operations on and after Jan. 1, 2023, to participate in State Teachers’ Retirement System (STRS) or Public Employees’ Retirement System (PERS), or both. It would not, however, apply to a charter school seeking a renewal authorization on or after Jan. 1, 2023, if the charter school initially received authorization to commence operations before Jan. 1, 2023, and has continuously operated as a charter school since that initial authorization. 

The bill would generally require STRS, the Cash Balance Benefit Program, and PERS to apply to a charter school in the same manner as the systems and program apply to other public schools.

The bill would require the chartering authority to provide notice to STRS or PERS, as applicable, of the occurrence of specified events—including approval of a charter school petition—within 30 days of the event’s occurrence, on a form prescribed by the system.

The state Senate passed the bill on May 25 in a 21-10 vote; it was sent to the Assembly and referred to its Committee on Public Employment and Retirement and its Committee on Education.