There are new rules for retirement savings plans in California… which may cause some issues in the trucking industry.
So, what’s the latest? In November, California began the first phase of the CalSavers program. While it is not yet mandatory for businesses to sign up, it will be in about a year and a half. Companies with more than 100 employees are required to sign up by then. But, two years after that, all trucking companies and business with just five employees or more need to follow the new protocol.
How will this impact the trucking industry?
With the new policies, trucking companies must spend a lot of time processing new-employee paperwork. The problem? Many motor carriers tend to have a high driver turnover rate. As Ron Falkner, the president of Faulkner Trucking in Tulare, stated: “If people stuck around, it would be a no-brainer. But it’s going to be cumbersome and worthless.”
And, this won’t just impact the industry in California. Trucking companies in other states have new rules for retirement plans, too. Some require an employer-sponsored retirement savings plan. Others require employees to participate in a state-run retirement plan.
Basically, the plans are in place to address smaller companies. Low and middle-income workers at these companies often don’t receive workplace retirement savings plans. Since workers are more likely to sign up for a plan through work than on their own, these new policies are in place to help.
But, does it help everyone? In November, California officials stated: “Inadequate retirement savings affects not only the quality of life and physical health of individuals, but also significantly increases the burden on the state’s retirement income support programs.”
Perhaps the overall goal of the retirement savings plan laws is a good one… but will it just cause an unnecessary headache in the trucking industry? What do you think about the CalSavers program?