9th Circuit Court of Appeals Upholds California Retirement Benefits Program
Posted May 21, 2021
A unanimous May 6 opinion by the U.S. Court of Appeals for the Ninth Circuit upheld CalSavers, a state-sponsored program established in 2017 to provide retirement benefits for private workers whose employers do not offer pensions or 401(k) programs. The Howard Jarvis Taxpayers Association had sued the program on the basis of preemption by the federal Employee Retirement Income Security Act, or ERISA, an argument that the court rejected. Similar programs have been adopted in other states, but the 9th Circuit's May 6 decision was the first time a federal appeals court has ruled on the issue. See Los Angeles Times, Courthouse News.