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CalSavers Retirement Savings Program

The state of California has set up a retirement savings program for employees who aren’t covered by an employer’s 401(k) or other retirement plan. Initially, the plan was called the California Secure Choice Retirement Program and was to be tied into the federal my IRA program. Due to lack of participation, my IRAs were discontinued. A further delay in getting the program off the ground was a court case, Howard Jarvis Taxpayers Association v. The California Secure Choice Retirement Savings Program, challenging whether the state’s retirement savings program was legal under the federal ERISA law. The court ruled that it doesn’t violate ERISA, but also allowed the plaintiff to file an amended complaint, which it did. In March 2020, the U.S. District Court for the Eastern District of California dismissed the lawsuit filed by the Howard Jarvis Taxpayers Association. The case was appealed to the 9th Circuit Court, which upheld the lower court’s decision, and a further appeal to the U.S. Supreme Court was rejected on February 28, 2022.

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