New America Foundation and AARP Praise City of LA's Support of a Portable Retirement Savings Proposal

Contact: Liz Wu
510-295-9859 (m)
wu@newamerica.net

FOR IMMEDIATE RELEASE -- March 31, 2009

Los Angeles, CA -- Today, Los Angeles City Council unanimously passed a resolution in support of AB 125, state legislation reintroduced by Assemblyman Kevin De Leon (D-Los Angeles) to give California workers access to a low-cost, professionally managed retirement account.

Advised by New America's Asset Building Program, Assemblyman Kevin De Leon (D-Los Angeles), authored AB 125 to establish the California Employees Savings Program. CalESP will provide voluntary and portable retirement savings accounts that workers can freely take with them from job to job.

"Too many hardworking Californians don't have access to a work based retirement savings plan.  With the passage of AB 125, California can show the rest of the nation how to use existing tools to make it easier for workers to build their retirement savings through payroll deduction while offering small businesses a basic savings plan to offer their employees," said Olivia Calderon, California Legislative Director of New America's Asset Building Program. "We applaud the city of LA and in particular Councilman Alarcón's leadership in recognizing the need to address the growing retirement savings crisis and look forward to continue advising the state legislature to ensure the passage of this timely measure."

Currently, approximately 6 million California workers, roughly 43 percent of the state's workforce, go to work at a job that does not offer them a pension or a retirement savings plan to supplement Social Security.

"We're excited about LA City's support of AB 125.  We know that during these difficult economic times people are not saving as much as they should," said Ernie Powell, Policy Director of AARP California. "Workers need an easy, portable way to build their personal savings for retirement, because Social Security was never intended to be an individual's sole income.  For this reason, we are proud co-sponsors of this legislation and will work tirelessly to ensure its passage."

New America's Asset Building Program has long called for the creation of a portable retirement account that will enable all workers the opportunity to build wealth and achieve financial security.

The following New America Foundation experts are available to discuss what individuals, the government and employers can do to help Californians save:

• Olivia Calderon, California Legislative Director, Asset Building Program
• Mark Paul, Senior Scholar, California Program
• Anne Stuhldreher, Fellow, Asset Building Program

For interviews please contact:

Liz Wu
510-295-9859 (m)
wu@newamerica.net

About the California Asset Building Program
The purpose of New America's Asset Building Program, established in 2002, is to significantly broaden savings and assets ownership in America, thereby providing all Americans both with the means to get ahead and with a direct stake in the overall success of our economy. This major, new direction in public policy promises to be as successful in the 21st century as the Homestead Act and GI Bill were in previous centuries. The Program also established a Global Assets Project to promote asset-building policies worldwide. For more information, please visit the California Asset Building Program website at www.newamerica.net/california

About New America
The New America Foundation is an independent, nonprofit, nonpartisan public policy institute whose purpose is to bring exceptionally promising new ideas and new voices to the fore of our nation's public discourse. New America is headquartered in Washington, D.C. and has offices in California.

Learn More About: Anne Stuhldreher, Mark Paul, Olivia Calderon
Related Programs: New America in California, Asset Building Program, California Asset Building
Topics: Ownership & Assets