The Department of Labor is no longer backing a twice-dismissed challenge to the CalSavers program, according to its Feb. 5 filing with the U.S. District Court for the Eastern District of California in Sacramento.
"After the change in administration, the acting secretary of Labor has reconsidered the matter and hereby notifies the court that he no longer wishes to participate as amicus in this case and that he does not support either side," the filing said.
During the Trump administration, the Labor Department filed an amicus brief in June supporting a challenge that began in 2018 when the California-based Howard Jarvis Taxpayers Association sued to stop the CalSavers program, arguing that it was preempted by ERISA. That would prevent taxpayer money being spent on it, the group argued. The court In April 2019 dismissed the association's case but allowed for an amended complaint that was then dismissed in March 2020.
The $37.8 million CalSavers Retirement Savings Program, Sacramento, is a defined contribution plan for private-sector workers in California who do not have access to a retirement plan sponsored by their employers. It rolled out statewide in July 2019. To date, it has enrolled 274,024 participants, with an opt-out rate of 29.6%.
CalSavers Executive Director Katie Selenski said in an email that the plan does not comment on pending litigation.