The Latest: California governor signs worker retirement bill

SACRAMENTO, Calif. – The Latest on California’s private sector retirement bill (all times local):

10:30 a.m.

California’s governor is approving legislation that will automatically enrol millions of private-sector workers in retirement savings accounts.

The legislation signed Thursday by Gov. Jerry Brown is an attempt to address the growing concern that many workers will be forced to work until they die or retire and live in poverty.

SB1234 creates a state-run retirement program for nearly 7 million workers who don’t have an employer-sponsored plan. Employers will be required to enrol their workers and deduct money from each paycheque, though workers can opt out.

Supporters say that since opting out is more work, workers will be less likely to do so, allowing them to set aside a nest egg.

The financial services industry aggressively lobbied Brown for a veto, warning the proposal is built on a shaky financial footing.

___

12 a.m.

California’s governor is preparing to sign a bill to automatically enrol millions of private-sector workers in retirement savings accounts.

The legislation is an attempt to address the growing concern that many workers will be financially unprepared to retire. Gov. Jerry Brown says he’ll sign it on Thursday.

SB1234 creates a state-run retirement program for nearly 7 million workers who don’t have an employer-sponsored plan. Employers will be required to enrol their workers and deduct money from each paycheque, though workers can opt out.

Supporters say that since opting out is more work, workers will be less likely to do so, allowing them to set aside a nest egg.

The financial services industry aggressively lobbied Brown for a veto, warning the proposal is built on a shaky financial footing.