Friday, April 20, 2012

SB 1234 Opposition

Small Business California rarely opposes legislation. We want to be known for what we support not what we oppose. But sometimes we just have to say no. SB1234 is one of those situations. Please see below  our letter to Senators Steinberg and DeLeon opposing SB1234.

Scott Hauge
Small Business California
2311 Taraval Street
San Francisco, CA  94116


 April 19, 2012

The Honorable Kevin DeLeon
The Honorable Darrell Steinberg
California State Senate
State Capitol
Sacramento, CA  95814

RE:  SB 1234 (DeLeon-Steinberg), as Amended April 17, 2012 – California Retirement Savings Plan – OPPOSE

Dear Senators DeLeon and Steinberg:

On behalf of Small Business California and its network of more than 5,000 employers who represent 3.2 million small businesses in this state, we must regrettably OPPOSE Your SB 1234 that would establish the Golden State Retirement Savings Trust administered by the Golden State Retirement Savings Investment Board under the State Treasurer’s Office.

Senate Bill 1234 would also authorize the California Public Employees Retirement System (Cal PERS) to manage and administer funds in the program. SB 1234 would require businesses with 5 or more employees to set up and enroll in a pension plan of their own or through Cal PERS.  SB 1234 would also establish a $1000 fine per employee for employers who do not set up a plan. Historically, the business community and especially small employers oppose any legislative or regulatory effort by government to mandate a specific course of action where there is no proven need.

Small Businesses already have access to 401(k) and IRA plans, so we believe that the establishment of the Golden State Retirement Savings Trust is a duplicative, complex and bureaucratic plan that places an administrative and costly burden on small businesses. Historically also, small business has been against any legislative or regulatory attempt by government to compete with private industry. The proposed legislation does not present any evidence that private sector businesses who are in the business of providing benefit plans for the small business community needs government competition.   For these reasons, Small Business California must oppose SB 1234.

Small Business California would greatly appreciate the opportunity to discuss our opposition with you and your staff.  The bill, in its current form, is unacceptable to the small businesses of California.  If you have any questions, please contact me directly at 415.680.2109 or email at  Or, you may contact our legislative advocate in Sacramento, Lori Kammerer, Kammerer & Company, at 916.441.5674 or at


Scott Hauge, President
Small Business California

1 comment:

Anonymous said...

What happens to the 3% contributions if the participant dies before retirement? Will it be like social security and lost (except of course to surviving spouses and dependent children). If so - then between social security contributions and this - it is 6.2% and 3% = 9.2% of a participants salary potentially lost to an estate upon the persons death.