The Howard Jarvis Taxpayers Association has filed a petition with the United States Supreme Court, asking that Court strike down the 9th Circuit decision upholding the CalSavers mandatory IRA as preempted by ERISA. The Supreme Court has now taken an interest in the case and formally asked for a response from the State of California, the defendant in the suit.
The 9th Circuit upheld the CalSavers program on May 6, 2021, which mandates that all employers with at least 50 California employees offer some sort of tax-qualified retirement plan. By the middle of 2022, that mandate will be extended to all employers with at least 5 California employees.
CalSavers is part of a growing trend in state-run IRA programs, and if the Supreme Court wades in on this matter, it will have a lasting impact on the future of state-mandated vs. federal retirement programs.