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Assembly passes bill opening CalPERS to private workers
By Jim Sanders - jsanders@sacbee.com
Published 12:00 am PDT Friday, May 30, 2008
Story appeared in MAIN NEWS section, Page A3
California's massive public employees pension system could help secure financial futures for millions of private workers under legislation approved Thursday by the Assembly.
The measure, Assembly Bill 2940, calls for the California Public Employees' Retirement System to oversee a separate and voluntary investment program for private workers.
No other state operates such a system, which is designed to assist 6 million Californians – 41 percent of the state's work force – whose employers do not offer a pension or retirement plan.
"This is a golden opportunity for all working Californians," said Assemblyman Kevin de León, a Los Angeles Democrat who proposed the bill.
Opponents counter that the state has no business competing with private industry. "Trust me, there is nothing innovative about the idea of letting government take over when the private sector is perfectly capable," said Assemblyman Anthony Adams, R-Hesperia.
AB 2940 passed the Assembly, 42-28, and now goes to the Senate. Republican Gov. Arnold Schwarzenegger supports the bill, but it received no GOP votes in the Assembly.
The legislation would not allow private workers to become members of CalPERS, but they could invest funds through payroll deduction into retirement accounts managed by the giant pension system. Workers would not have to withdraw assets when they switch jobs.
Numerous details remain unresolved, but the concept is to use CalPERS' financial expertise to provide an attractive mechanism for private workers to invest and for businesses, if they desire, to match contributions.
Public and private funds would not be commingled in the program. It would be launched only if CalPERS determines it is feasible, federal agencies approve, and startup funds are appropriated in the state budget.
About the writer:
- Call Jim Sanders, Bee Capitol Bureau, (916) 326-5538.
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