California Moves Forward with State-Sponsored Retirement Plan
The article, “California Moves Forward with State-Sponsored Retirement Plan,” featured in SHRM, highlighted the passing of a new California bill that would require certain private-sector employers to arrange for automatic payroll deposits into employee retirement savings accounts.
Alden Parker discussed the implementation process of the bill, if signed, and what role Human Resources would play.
On Jan. 1 2017, the board would begin looking at how to open the program for enrollment, said Alden.
Regarding the California bill, Alden said the immediate impact on HR professionals will be record-keeping. They will have to spend time deciding who's responsible for developing and distributing informational materials, he said.
The more overarching concern, if issues arise, is whether the employer is going to be held as a responsible party, he noted. It may become crucial for the HR professional to show that an employee was provided enough information to make an informed decision about whether to opt out of the program.
To read the full article, please visit SHRM.