United Ways of California Assists CalSavers to Boost Saving for Retirement by California Private Sector Employees
Los Angeles, CA - Below is a statement from Peter Manzo, President and CEO, on behalf of United Ways of California (UWCA) regarding the new retirement savings program, CalSavers:
United Ways of California is proud to announce a grant from the Laura and John Arnold Foundation to support a statewide initiative to engage and educate business leaders and employees about CalSavers, a new retirement savings program created by the state to enable more Californians to save for retirement.
CalSavers is a public-private partnership that will offer employees who do not have access to retirement options through their employer a completely voluntary, low cost, portable auto-enrollment individual retirement savings vehicle, with professionally managed investments and public oversight. In doing so, the CalSavers program will enable small and large businesses and nonprofit organizations to provide access to retirement savings program to their employees without the costs and the administrative and fiduciary burden of an employer-sponsored plan.
“More than 7 million private-sector employees in California work for employers that do not offer retirement plans. As a result, too few California workers save for retirement and too many retire into financial hardship,” said Pete Manzo, President and CEO of United Ways of California. “CalSavers will ensure nearly all Californians working in the private sector have an option to save for retirement through payroll deduction, which research has shown sharply increases savings rates, while giving employers a no cost, hassle-free way to help their employees save for the future. We are excited to bolster the mission of CalSavers, to ensure millions more California workers have a path to financial security in retirement by providing a simple, portable, low-cost way to invest in their futures.”
With support from the Laura and John Arnold Foundation, United Ways of California will join Small Business Majority, which also has received a grant from the foundation, and CalSavers, to direct statewide outreach to businesses and employees about the new program. CalSavers was created by the 2016 Senate Bill 1234, authored by Senator Kevin De Leon. The program has been developed over the past two years by the California Secure Choice Retirement Savings Investment Board, chaired by State Treasurer John Chiang.
United Ways of California will assist CalSavers and a broad group of stakeholders, including chambers of commerce, business associations, labor unions, asset building organizations and more, in carrying out the outreach plan. United Ways of California will support the development of cross-sector partnerships in key regions of the state – Bay Area, Sacramento, Central Valley, Los Angeles and Inland Empire – anchored by local United Ways and involving local business and civic associations, labor, community-based organizations, economic development and asset-building organizations and more to conduct education and outreach to employers and employees alike. Other prominent foundations such as The California Wellness Foundation and the Friedman Family Foundation have been leaders in supporting CalSavers and the regional work across the state.
Pete Manzo, CEO & President of United Ways of California, said, “We are excited to work with CalSavers to ensure all Californians have a path to financial security in retirement by providing a simple, portable, low-cost way for workers to invest in their futures. Paired with our work ensuring low-income workers can access the California Earned Income Tax Credit and federal credits, United Way is helping hundreds of thousands of low-income workers across California become more financially stable, now and into the future.”
United Ways of California improves health, education and financial stability results for low-income California families by coordinating the statewide community impact and advocacy work of California United Ways.
Contact: Judy Darnell
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