California 2009-2010 Regular Session Status: Passed Assembly

AB 125 — Retirement: California Employee Savings Program.

Last action — From Senate committee without further action.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2009-2010 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing federal law provides for tax-qualified retirement plans and individual retirement accounts or individual retirement annuities by which private citizens may save money for retirement. This bill would create the California Employee Savings Program, which would be operative only upon a specified appropriation in the annual Budget Act or if sufficient funds are made available through a nonprofit or private entity or federal funding, as specified. The program would be administered by the Board of Administration of the Public Employees' Retirement System (PERS) , with the intent of promoting greater retirement savings for California private employees in a convenient, low-cost, and portable manner. The bill would require the board, under this program, to offer one or more individual retirement accounts or defined benefit plans, as specified, to eligible employees of participating eligible employers, as defined. The bill would specify that eligible employees of participating employers are not members of PERS. The bill would permit the board, in initiating and administering the program, to, among other things, employ staff and 3rd-party administrators, as necessary, collaborate with various entities in the private sector, recover expenses from contributions or investment returns, as specified, and evaluate and establish the process by which eligible employees who want to contribute a portion of their paycheck to an account offered by the program are able to notify their employers and require the employer to forward the contribution and related information to the program. The bill would require the Employment Development Department to cooperate in this regard. The bill would authorize the Employment Development Department to charge a fee for any administrative costs it incurs by reason of implementing and administering the program. The bill would require the board to make reports to employers on the progress and status of the program. The bill would also require the board to make specified reports to the Legislature, including a report upon determining that all specified conditions necessary to implement the program can be satisfied, a report if it finds that the program is not self-sustaining, and annual reports on the status of the program, as specified. The bill would require PERS, after specified acts have occurred, to request funding through a Budget Act appropriation or from a nonprofit or private entity or from federal funding for the purpose of implementing the program. The bill would require the board to keep program funds and accounts separate from those of PERS and would prohibit the use of funds in PERS, as specified, to initiate, develop, implement, or administer the program. In addition, the bill would require that all expenses and obligations created by the program be funded by its contributions, returns, and assets, except as the Legislature may appropriate funds for this purpose, to be deposited in the California Employee Savings Program Administrative Fund, which this bill would establish as a continuously appropriated fund. The bill would require PERS to obtain the necessary approvals from federal authorities for the program's implementation. The bill would prohibit any claim, tax lien, or other right of setoff from applying to funds or assets of the program, as specified. The bill would indemnify from the General Fund and hold harmless the present, former, and future board members, officers, employees of, and investment managers under contract with, PERS in connection with any decision or action related to the administration of the program. The bill would provide that the program may only be implemented if the board determines that certain conditions are satisfied, and would permit the board to discontinue the program on its determination, as specified. The bill would permit the board to adopt regulations in regard to the program, and would provide that the adoption, amendment, or repeal of a regulation is exempted from the rulemaking provisions of the Administrative Procedure Act. Subject to the availability of funds, as specified, the bill would require the board to report to Legislature regarding the feasibility of creating a defined benefit plan option to be available to employers. The bill would also make a statement of findings.

Bill Text

Action History

  1. From Senate committee without further action.

  2. In committee: Held under submission.

  3. In committee: Placed on Appropriations suspense file.

  4. In committee: Hearing postponed by committee.

  5. From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 4. Noes 2.) (June 22).

  6. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on P.E. & R.

  7. Referred to Com. on P.E. & R.

  8. In Senate. Read first time. To Com. on RLS. for assignment.

  9. Read third time, passed, and to Senate. (Ayes 47. Noes 30. Page 2043.)

  10. Read second time. To third reading.

  11. Read second time and amended. Ordered returned to second reading.

  12. From committee: Amend, and do pass as amended. (Ayes 12. Noes 5.) (May 28).

  13. In committee: Set, first hearing. Referred to APPR. suspense file.

  14. From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 4. Noes 2.) (April 1).

  15. Referred to Com. on P.E.,R. & S.S.

  16. From printer. May be heard in committee February 15.

  17. Read first time. To print.

Sponsors

  • Beall · Cosponsor
  • Carter · Cosponsor
  • De Leon · Primary
  • Jones · Cosponsor
  • Coto · Cosponsor
  • Eng · Cosponsor
  • Hernandez · Cosponsor
  • Lieu · Cosponsor
  • Ma · Cosponsor
  • Solorio · Cosponsor
  • Torrico · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 10 co-sponsors · 111 not signed on · 4 voted No

Sponsors (1)

  • De Leon

Co-sponsors (10)

  • Beall
  • Carter
  • Jones
  • Coto
  • Eng
  • Hernandez
  • Lieu
  • Ma
  • Solorio
  • Torrico

Not signed on (111)

111 members have not signed on to this bill.

Show all 111 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Placed on Appropriations Suspense file.

Passed 12 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 12001
Total 12001
% of votes cast 92%0%0%8%
How each member voted (13)
Member Party Vote
Yee — Yea
Wyland — Yea
Corbett — Yea
Hancock — Yea
Runner — Yea
Wolk — Yea
Oropeza — Not Voting
Kehoe — Yea
Leno — Yea
Price — Yea
Walters — Yea
Cox — Yea
Denham — Yea

Official roll call →

AB 125 DE LEON Assembly Third Reading

Passed 56 Yea · 33 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 523103
Republican 1200
Democratic 3000
Total 563303
% of votes cast 61%36%0%3%
How each member voted (92)
Member Party Vote
Conway — Nay
Cook — Nay
Bill — Nay
Tom — Nay
Yamada — Not Voting
Fletcher — Nay
Audra — Nay
Fuller — Nay
Garrick — Nay
Gilmore — Nay
Hagman — Nay
Huber — Nay
Jeffries — Nay
Knight — Nay
Bass — Yea
Duvall — Nay
Nestande — Nay
Silva — Nay
Smyth — Nay
Torrico — Yea
Tran — Nay
Villines — Nay
Carter — Yea
Chesbro — Yea
Feuer — Yea
Fuentes — Yea
Charles — Yea
Galgiani — Yea
Hall — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fong — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
John — Yea
A. — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Beall — Yea
Hayashi — Yea
Hill — Yea
Huffman — Yea
Krekorian — Yea
Lieu — Yea
Ma — Yea
Mendoza — Yea
Nava — Yea
Price — Yea
Ruskin — Yea
Skinner — Yea
Solorio — Yea
Swanson — Yea
Adams — Nay
Ammiano — Yea
Anderson — Nay
Blakeslee — Nay
Block — Not Voting
Blumenfield — Yea
Brownley — Yea
Buchanan — Not Voting
Harkey — Nay
Hernandez — Yea
Logue — Nay
Miller — Nay
Monning — Yea
Nielsen — Nay
Torlakson — Yea
Torres — Yea
Emmerson — Nay
Coto — Yea
Eng — Yea
Evans — Yea
Davis — Yea
DeVore — Nay
Furutani — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
Bill Berryhill — Nay
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Nay
Strickland, Tony Republican Nay

Official roll call →

Do pass as amended.

Passed 16 Yea · 6 Nay
Party YeaNayPresentNot Voting
Unaffiliated 15500
Democratic 1000
Republican 0100
Total 16600
% of votes cast 73%27%0%0%
How each member voted (22)
Member Party Vote
Charles — Yea
De — Yea
Leon — Yea
John — Yea
A. — Yea
Perez — Yea
Audra — Nay
Hall — Yea
Duvall — Nay
Harkey — Nay
Krekorian — Yea
Ammiano — Yea
Skinner — Yea
Solorio — Yea
Torlakson — Yea
Miller — Nay
Nielsen — Nay
Price — Yea
Davis — Yea
Fuentes — Yea
Calderon, Lisa Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

Subjects

finance labor
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Frequently asked questions

What does AB 125 do?
Existing federal law provides for tax-qualified retirement plans and individual retirement accounts or individual retirement annuities by which private citizens may save money for retirement. This bill would create the California Employee Savings Program, which would be operative only upon a specified appropriation in the annual Budget Act or if sufficient funds are made available through a nonprofit or private entity or federal funding, as specified. The program would be administered by the Board of Administration of the Public Employees' Retirement System (PERS) , with the intent of promoting greater retirement savings for California private employees in a convenient, low-cost, and portable manner. The bill would require the board, under this program, to offer one or more individual retirement accounts or defined benefit plans, as specified, to eligible employees of participating eligible employers, as defined. The bill would specify that eligible employees of participating employers are not members of PERS. The bill would permit the board, in initiating and administering the program, to, among other things, employ staff and 3rd-party administrators, as necessary, collaborate with various entities in the private sector, recover expenses from contributions or investment returns, as specified, and evaluate and establish the process by which eligible employees who want to contribute a portion of their paycheck to an account offered by the program are able to notify their employers and require the employer to forward the contribution and related information to the program. The bill would require the Employment Development Department to cooperate in this regard. The bill would authorize the Employment Development Department to charge a fee for any administrative costs it incurs by reason of implementing and administering the program. The bill would require the board to make reports to employers on the progress and status of the program. The bill would also require the board to make specified reports to the Legislature, including a report upon determining that all specified conditions necessary to implement the program can be satisfied, a report if it finds that the program is not self-sustaining, and annual reports on the status of the program, as specified. The bill would require PERS, after specified acts have occurred, to request funding through a Budget Act appropriation or from a nonprofit or private entity or from federal funding for the purpose of implementing the program. The bill would require the board to keep program funds and accounts separate from those of PERS and would prohibit the use of funds in PERS, as specified, to initiate, develop, implement, or administer the program. In addition, the bill would require that all expenses and obligations created by the program be funded by its contributions, returns, and assets, except as the Legislature may appropriate funds for this purpose, to be deposited in the California Employee Savings Program Administrative Fund, which this bill would establish as a continuously appropriated fund. The bill would require PERS to obtain the necessary approvals from federal authorities for the program's implementation. The bill would prohibit any claim, tax lien, or other right of setoff from applying to funds or assets of the program, as specified. The bill would indemnify from the General Fund and hold harmless the present, former, and future board members, officers, employees of, and investment managers under contract with, PERS in connection with any decision or action related to the administration of the program. The bill would provide that the program may only be implemented if the board determines that certain conditions are satisfied, and would permit the board to discontinue the program on its determination, as specified. The bill would permit the board to adopt regulations in regard to the program, and would provide that the adoption, amendment, or repeal of a regulation is exempted from the rulemaking provisions of the Administrative Procedure Act. Subject to the availability of funds, as specified, the bill would require the board to report to Legislature regarding the feasibility of creating a defined benefit plan option to be available to employers. The bill would also make a statement of findings.
Who sponsors AB 125?
AB 125 is sponsored by Beall, Carter, De Leon, Jones, Coto, Eng, Hernandez, Lieu, Ma, Solorio, and Torrico.
What is the current status of AB 125?
This bill died with 2009-2010 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 125?
Track AB 125 free on One Click Politics — get push/email alerts when it moves.

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