State Savings Initiatives: Lessons from California and Connecticut

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The brief’s key findings are:

  • California and Connecticut are seeking to provide retirement plan coverage to private sector workers who lack it.
  • Both states propose a mandate on employers to either provide their own plan or automatically enroll their workers in a state Auto-IRA program.
  • Both states have completed feasibility studies that offer important lessons:
    • a mandate with auto-enrollment will yield high worker participation rates;
    • employer support is mixed, but they will not discourage participation; and
    • successful implementation requires minimizing the employer burden and creating an efficient recordkeeping system and enforcement mechanism.