WHAT THEY’RE SAYING ABOUT CALSAVERS

STATEWIDE LEADERS

“Our businesses and workers have grown California’s economy to the fifth largest in the world, so it is with great fulfilment that we, as one state, are today declaring we are leaving no worker behind to languish in poverty through their golden years. Small business employees and our state’s millions of self-employed and gig economy workers now have a clear path to saving for a secure retirement. CalSavers will help facilitate the most ambitious and sweeping expansion of retirement security since the passage of Social Security in 1935.”

- California State Treasurer John Chiang

“No one who works every day to provide for themselves and their loved ones should be forced to retire into poverty. That’s why we fought Wall Street to create CalSavers, which will provide millions of Californians with a way to end their working years with dignity.”

- State Senator Kevin De León

"CalSavers could be the difference between retiring with dignity and some level of independence or having to rely heavily on the government when you’re in your golden years. I’m pleased about the process we are making to allow working Californians to build toward a secure retirement through CalSavers.”

- Assemblymember Lorena Gonzalez

“Clearly, the best way to improve retirement security is to ensure that everyone who works has access to a low-cost, professionally-managed retirement plan that enables them to save automatically out of every paycheck. CalSavers does just that, which is why AARP strongly supports the program.”

- Joe Garbanzos, Executive Council, AARP California

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"The California Asset Building Coalition is a proud partner and supporter of CalSavers. We know that many working Californians, in particular, low-wage earners, do not have access to employer-based retirement savings plans, which leaves many people to retire into poverty. CalSavers ensures Californians have access to a safe and affordable retirement savings program and the opportunity to save for their future."

- Sabrina Hamm, Statewide Managing Director, California Asset Building Coalition

“CalSavers is a game changer for the millions of California small businesses and employees struggling to access retirement savings. The program will go a long way toward leveling the playing field for the many small firms that simply lack the resources to enroll their employees in a retirement savings program. We look forward to educating small employers, media, and the general public about CalSavers, and the good it can do for the Golden State.”

- Mark Herbert, California Director, Small Business Majority

“We are excited to work with CalSavers to ensure all Californians have a path to financial security in retirement by providing a simple, portable, low-cost way for workers to invest in their futures. Paired with our work ensuring low-income workers can access the California Earned Income Tax Credit and federal credits, United Way is helping hundreds of thousands of low-income workers across California become more financially stable, now and into the future.”

- Pete Manzo, President and CEO, United Ways of California

“CalSavers offers a simple way for millions of Californians to save for their future. That is why AARP strongly supports the CalSavers program and is eager to spread the word about how it will benefit working Californians.”

- Patricia Perez, California State President, AARP

"CalSavers is a major step forward in providing all working Californians with the opportunity to build financial stability and plan for a secure retirement. As an organization dedicated to increasing the savings rates for low-to-moderate income Americans, EARN knows first-hand how important building savings is to the economic well-being of California's families and how hard it can be for families to get started. CalSavers is well-positioned to have real impact on this critical issue."

- Leigh Philllips, CEO, EARN

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“UnidosUS has been a strong supporter of the CalSavers program and we are looking forward to seeing the positive impact it will have on working Latino families. In 2014, only 29% of Latinos in the state had access to an employer-sponsored retirement plan and only 21% of those with access to a plan participated. With the implementation of the CalSavers program, an estimated 3.5 million Latino employees will gain access to retirement accounts — something that has been out of reach for many of the state’s hard working families for too long.”

- Marisabel Torres, Senior Policy Analyst, UnidosUS

LOS ANGELES LEADERS

“United Way of Greater Los Angeles is proud to partner with CalSavers to bring Angelenos a new option to save for their long-term financial needs. Our mission is to create opportunities and pathways for low-income individuals and families to find economic stability and prosperity. CalSavers is a new and innovative tool for those in need to build security for their retirement years, including thousands who have not had this option in the past. We are excited to increase awareness about this program and look forward to helping more of our neighbors save.”

- Elise Buik, President and CEO, United Way of Greater Los Angeles.

"Too many young Californians, especially young people of color, currently don't have access to a retirement program through an employer. We know all young people are planning for the future, and that they all want to save. CalSavers provides a solution, opening up access to retirement accounts for young people who otherwise don't have that option. This is one important way we can address racial and ethnic gaps in retirement savings and creating a more equitable future for people in our state."

- Gustavo Herrera, Western Regional Director, Young Invincibles

SAN DIEGO LEADERS

"With less than half of low-income working Millennials having access to an employee-sponsored retirement plan, CalSavers will be an invaluable tool for young Californians pursuing a financially-secure future."

- Kristin McGuire, Director of Partnerships & Organizing, Young Invincibles

“Registering was easy, and the platform was very user friendly and easy to navigate.”

- Victor Barajas, Human Resources Manager, Integrated Microwave Corporation

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FRESNO LEADERS

"CalSavers offers a smart fix to a huge problem in the Central Valley — too many of our residents face the uncertainty of a financially insecure retirement. Not only will this groundbreaking program level the playing field for thousands of small businesses in the Central Valley, but it will put 90,000 employees, right here in Fresno, on the path to a more secure and dignified retirement.”

- Former Fresno Mayor Ashley Swearengin, now CEO of the Central ValleyCommunity Foundation

SACRAMENTO LEADERS

“Here in Sacramento, many small business owners would like to offer a retirement savings plan as a benefit to their employees, but they're too busy running their businesses to research and administer such a plan, and they can't afford the fees. CalSavers will give employees of these firms a way to save for a secure retirement."

- Sacramento Mayor Darrell Steinberg

"As the director of a small non-profit, I am always looking for ways to take care of my employees. They do this work because their heart is in it, not because it pays well. Having a cost effective program to help them save for retirement is a complete win for both our organization and our employees. I've signed on to be an early adopter, because I know my employees will be very excited to finally have a great option to begin saving for retirement. They deserve this, and so much more for the important work that they do."

- Tracy Fauver, Executive Director of Yolo CASA

“Local 1000 believes a safe and secure retirement should be available to everyone who works hard throughout their lives, and this is the first step to ensure that all Californians may retire with dignity.”

- Yvonne R. Walker, President, SEIU Local 1000, and CalSavers RetirementSavings Plan Board member

“Our 41 employees are like family, which is why we have wanted to provide them with some sort of retirement security program for a long time, but, as a small business, the administrative burden and costs have always been prohibitive for us. CalSavers will allow us to finally give each of our employees the power to take control of their own retirements, while giving us the ability to attract additional employees. We can’t wait to sign up!”

- Lorenzo Harris, President and CEO, Janico Building Services, North Highlands

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SAN FRANCISCO LEADERS

“The CalSavers program will improve retirement security for hundreds of thousands of workers in San Francisco and throughout the Bay Area. As San Francisco’s Treasurer, I believe that my responsibility to safeguard our city’s money extends to the financial wellbeing of our residents, for whom retirement savings are a major concern. CalSavers is a win for workers and their families, as well as for the small businesses that are the lifeblood of our local economy.”

- San Francisco City Treasurer José Cisneros

“My staff have been eagerly anticipating the launch of CalSavers. To have a retirement option at a young age is especially meaningful when living paycheck to paycheck because it’s hard to make plans for the future, and CalSavers will provide the vehicle for them to have peace of mind for the future.”

- Christin Evans, Owner, The Booksmith, San Francisco

THE PROBLEM:

Over 75% of California’s low and moderate in-

come retirees rely exclusively on Social Secu-

rity leading to significant economic hardship.

With each generation on track to retire poorer

than the last, the strain on taxpayer funded

health and human services will undermine the

long-term financial stability of the state.

Making Workplace Retirement Savings Possible for 7.5 Million Californians

• Nearly half of California workers are

on track to retire with incomes below

200 percent of the federal poverty level

($22,000 a year), a widely accepted

threshold for serious economic hardship.

(UC Berkeley)

• At least 62% of retirees rely on Social

Security for more than half their income.

• The average monthly Social Security

retirement benefit is $1,328.

OF THOSE:

2/3RDS WORK FOR SMALL BUSINESSES WITH LESS THAN 100 EMPLOYEES.

2/3RDS ARE WORKERS OF COLOR, ALMOST HALF OF WHICH ARE LATINOS.

58% ARE WOMEN.THE SOLUTION

7.5 MILLION CALIFORNIANS WORK FOR EMPLOYERS WHO DO NOT OFFER A RETIREMENT PROGRAM

(AARP)

ABOUT HALF OF HOUSEHOLDS AGE 55 AND

OLDER HAVE NO RETIREMENT

SAVINGS. (GAO)

57% OF CURRENT

RETIREES ARE WOMEN AND MAKEUP 70%

OF RETIREES IN THEBOTTOM 25% OF INCOME.

(UC BERKELEY,CENTER FOR LABOR

RESEARCH ANDEDUCATION)

WORKERS WITH ACCESS TO A WORKPLACE RETIREMENT

PROGRAM ARE 15 TIMES MORE LIKELY

TO SAVE FOR RETIREMENT.

(AARP)

TWO-THIRDS OF SMALL BUSINESS

OWNERS IN CALIFORNIA

SUPPORT A STATE RETIREMENT

SAVINGS PROGRAM THAT WOULD HELP SMALL BUSINESSES

AND THEIR EMPLOYEES SAVE FOR THE FUTURE.

73 PERCENT OF RESPONDENTS

THINK OFFERING SUCH A PROGRAM

WOULD GIVE THEIR BUSINESS A

COMPETITIVE EDGE.

(2015 SURVEY OF CA SMALL BUSINESS BY AARP AND SMALL

BUSINESS MAJORITY)

FOR MORE INFORMATION VISIT: WWW.TREASURER.CA.GOV/SCIB

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CalSaversCHAPTER 804 (CA STATUTES 2016):A voluntary workplace retirement savings program that enables participation through automatic employee payroll contributions into a personal retirement account managed by the California Secure Choice Retirement Savings Investment Board.

WHAT CalSavers WILL MEAN FOR EMPLOYEES:

• SIMPLE. Automatic payroll contribution into a personal retirement account, with the option to opt out or change contributions at any time. Automatic escalation of contribution rates up to 8% of salary with participant ability to stop or change the rate.

• SAFE. The Board will establish investment accounts professionally managed by a private firm with government oversight. Default options will seek the appropriate balance between safety and growth. Participant fees will be low. The Board, and its relevant contractors, will have a fiduciary duty to the participants of the program.

• PORTABLE. Employees can contribute to their account throughout their working life.

WHAT CalSavers WILL MEAN FOR TAXPAYERS:

• There will be NO cost or liability totaxpayers. The program will beself-sustaining through participantfees.

• The state will have no liability for theprogram funding or performance.

• By enabling participants to save forretirement, they may be less relianton taxpayer funded public serviceswhen they reach retirement age.

WHAT CalSavers WILL MEAN FOR EMPLOYERS:

• Enables employers to offer employees access to an automatic IRA account with limited administrative duties, no out of pocket costs, and no fiduciary responsibility.

• Enables employers to comply with the new state mandate which applies to employers with 5 or more employees who do not offer an employer-sponsored retirement option. These employers will be required to offer an employer- sponsored program or provide their employees with access to the CalSavers Retirement Program.

• Employers will be exempt from ERISA (Employee Retirement Income Security Act).

TIMELINE TO LAUNCH:

• Late 2018: Pilot program

• 2019: Program launch and begin 3year phased roll out of the employermandate by size, beginning with thelargest employers.

KEY SUPPORTERS:• AARP

• Asian Business Association• California Black Chamber

of Commerce• California Small Business

Association• California Asset Building

Coalition• California Association of

Nonprofits

• Church IMPACT• Los Angeles Latino

Chamber of Commerce

• Unidos US

• United Ways of California

• SEIU California

• Small Business California

• Small Business Majority

• Young Invincibles

San Diego County

Firms estimated to not provide access to a retirement plan.*

Total by Size of Firm

Firms Employees5-49 Employees 15,228 199,580

50-99 Employees 720 48,570

100+ Employees 321 90,146

TOTAL 16,269 338,296

Firms Employees

3,313 104,628

1,042 33,926

1,857 30,393

1,824 30,317

1,545 27,925

942 19,982

1,507 18,615

1,395 18,019

302 14,196

323 7,806 Arts, Entertainment, and Recreation

Top Ten Industries

*Source: State of California Employment Development Department, 4th quarter 2016.

Administrative Support/Waste Management & Remediation

Retail Trade

Health Care and Social Assistance

Construction

Manufacturing

Other Services (Except Public Administration)

Accommodation and Food Services

Professional, Scientific, and Technical Services

Finance and Insurance

Potential CalSavers Employers by Size of Firm 8/27/2018

Firms Employees Firms Employees Firms Employees Firms Employees

1 Los Angeles 56,806 748,696 2,576 174,667 1,358 632,061 60,740 1,555,424 2 Orange 18,292 246,504 977 67,095 504 167,291 19,773 480,890 3 San Diego 15,228 199,580 720 48,570 321 90,146 16,269 338,296 4 Riverside 8,935 119,388 403 27,471 198 55,883 9,536 202,742 5 Santa Clara 8,765 115,326 381 25,504 144 174,659 9,290 315,489 6 Alameda 8,269 107,362 341 22,684 158 72,428 8,768 202,474 7 San Francisco 6,631 84,428 272 18,357 120 37,591 7,023 140,376 8 San Bernardino 5,740 77,450 233 15,835 137 47,316 6,110 140,601 9 Sacramento 5,477 70,182 238 16,163 109 23,314 5,824 109,659

10 San Mateo 4,368 54,582 186 12,313 80 16,031 4,634 82,926 11 Contra Costa 4,222 51,632 156 10,513 64 23,613 4,442 85,758 12 Fresno 3,759 49,716 190 12,668 78 28,052 4,027 90,436 13 Ventura 3,434 44,254 142 9,488 54 11,592 3,630 65,334 14 Kern 2,891 38,416 109 7,188 81 43,586 3,081 89,190 15 Sonoma 2,516 30,397 83 5,580 25 4,528 2,624 40,505 16 San Joaquin 2,469 31,869 94 6,275 56 10,777 2,619 48,921 17 Stanislaus 1,440 18,213 44 3,027 30 7,473 1,514 28,713

TOTALS 159,242 2,087,995 7,145 483,398 3,517 1,446,341 169,904 4,017,734 % OF ALL FIRMS 86.0% 86.4% 88.5% 88.6% 89.3% 91.1% 86.2% 88.3%

TOTALS ALL FIRMS 185,173 2,415,998 8,073 545,834 3,940 1,587,639 197,186 4,549,471

TOTALS

RankCounties with

Population over 500K

5-49 Employees 50-99 Employees 100+ Employees