Supreme Court refuses to hear challenge to CalSavers

California prevailed Monday in a battle over its auto-IRA, CalSavers, when the Supreme Court refused to hear a challenge to the legality of the program.

“The United States Supreme Court’s denial of review preserves the ability of millions of hard-working Californians to save for their futures through this portable, simple option,” Fiona Ma, the treasurer of California, said in a statement. Ma chairs the CalSavers Retirement Savings Board.

The Supreme Court decision is good news not only for CalSavers, but for the other states and municipalities that operate similar programs.

In 2018, the Howard Jarvis Taxpayers Association had sued to block the CalSavers program on the grounds that it was illegal because it was preempted by the Employee Retirement Income Security Act.

A California District Court judge dismissed the suit in April 2019 and the 9th Circuit Court of Appeals affirmed that decision in May 2021.

CalSavers has more than $186 million in assets, with about 30,000 employers registered and 233,000 people enrolled, according to the statement.

The post Supreme Court refuses to hear challenge to CalSavers appeared first on InvestmentNews.

Andrew is half-human, half-gamer. He’s also a science fiction author writing for BleeBot.

Andrew Vincent
Andrew is half-human, half-gamer. He's also a science fiction author writing for BleeBot.
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