United States Department Of Justice Agrees That CalSavers Program Is Illegal

Today (13) the United States Department of Justice filed a “Statement of Interest” in the U.S. District Court agreeing with the Howard Jarvis Taxpayers Association (HJTA) in its legal action against California’s so-called “CalSavers” program. Originally called “Secure Choice,” CalSavers is a state-run retirement plan for private-sector employees. HJTA contends that it is an illegal program that leaves taxpayers, businesses and private sector employees exposed to unnecessary costs and risks.

“We are very pleased that the United States Department of Justice agrees with our core position that the program is facially invalid under the federal Employee Retirement Income Security Act (ERISA).” said HJTA president Jon Coupal.

He added, “There is no need for this program. Private employees already have access to Social Security which is backed by the Full Faith and Credit of the federal government. Moreover, individual retirement accounts (IRAs) are easy to set up. Given the poor performance of CalPERS and CalSTRS, both in terms of investment performance and governance, why would we give state politicians and bureaucrats access to another pension program?”

The case is currently pending in the United States District Court for the Eastern District of California.


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