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California Launches State-Sponsored Retirement Plan July 1

SACRAMENTO (AP) -- California has launched a state-sponsored retirement plan targeting employers who don't have options for their workers.

It's part of a state law requiring companies with at least five California-based employees to offer a retirement plan. As many as 300,000 businesses must comply by 2022.

One option is CalSavers Retirement Savings Program, which launched July 1. Companies who sign up for the plan would supply a list of their employees. CalSavers would automatically enroll them and then employers would deduct 5% from their paychecks into a retirement account. Workers can opt out of the plan or choose a different savings rate.

California Treasurer Fiona Ma says the program will help people "retire with dignity."

CalSavers first launched November 2018 with a pilot program .

A recent study by the University of California-Berkeley says half of the state's private sector workers have no retirement assets.

© Copyright 2019 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

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