Calif. Beats ERISA Challenge To State Retirement Program

Law360 (March 10, 2020, 3:24 PM EDT) -- The California Secure Choice Retirement Savings Program survived a legal challenge Tuesday, with a federal judge ruling that it is not preempted by the Employee Retirement Income Security Act.

U.S. District Judge Morrison C. England Jr. ruled that the program known as CalSavers, which funnels part of California workers' earnings into individual retirement accounts, "is neither an employee benefit plan nor does it relate to an ERISA plan," so the law creating it isn't canceled out by the federal benefits statute.

Judge England first dismissed the case last year, but he gave the plaintiffs — the Howard Jarvis Taxpayers Association —...

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