Press Statement

NCLR Applauds Signing of New California Law That Will Make Retirement Savings a Possibility for 7 Million Workers

September 29, 2016

Contact:
Julian Teixeira
jteixeira@nclr.org
(202) 776-1812

LOS ANGELES—Today, NCLR (National Council of La Raza) welcomed the signing of the California Secure Choice Retirement Savings Program bill into law by Governor Jerry Brown. The new law allows workers to access state-run Individual Retirement Accounts (IRAs), which will feature automatic enrollment for people working for companies with five or more employees. NCLR and its Affiliate organizations have worked closely over the past year to urge the state’s leaders to find a workable solution to a retirement savings gap that exists among Latino workers in California.

Estimates show more than half of California’s private-sector employees do not currently have access to a workplace retirement plan. With the bill signed, almost 7 million of California’s workers will now become eligible for the program, nearly half of them Latino.

“Today, California became the largest state in the nation to enact a state-run retirement savings program. We applaud the governor and the state legislature—particularly Senate Pro Tem Kevin de León—for ensuring that the state is doing its part to help hardworking families enjoy an economically secure retirement,” said NCLR President and CEO Janet Murguía. “Too many people who leave the workforce are unable to fully enjoy their retirement years because of a lack of savings and economic instability; this critical new program will help millions build their retirement savings over time.”

The median American household has saved only $5,000 toward retirement, which means an often dramatic decrease in standard of living for many of the nation’s aging population.

“We look forward to continuing our efforts to educate the Latino community about the benefits of this savings program and additional ways to further improve retirement savings for all Americans,” Murguía concluded.

NCLR—the largest national Hispanic civil rights and advocacy organization in the United States—works to improve opportunities for Hispanic Americans. For more information on NCLR, please visit www.nclr.org or follow along on Facebook and Twitter.