CalHR filed an amended regulation with the Office of Administrative Law regarding the Savings Plus Program contract periods. View the Notice of Proposed Action, Initial Statement of Reason, and proposed and final language of California Code of Regulations, Title 2, section 599.942 online. The proposed amendment would broaden the scope of a regulation enforced by the Department of Human Resources (CalHR) to align with the applicable Government Code section. Until 2019, Savings Plus was statutorily required to offer specific investment options, including annuity products. Senate Bill 1504 (Chapter 903, Statutes of 2018), amending the requirement and granted Savings Plus “exclusive authority to determine the investment products provided in the core portfolio, specifying “a broad range of investment options” as well as a brokerage option be offered (Gov. Code, section 19993.05, subd. (b).) This section is now known as the Freedom of Financial Choice Act. Savings Plus’ regulation section 599.942 reflects the outdated statutory requirements and must be amended to reflect current statute.
Amendment of California Code of Regulations, Title 2, section 599.943 Contract Periods
CalHR filed an amended regulation with the Office of Administrative Law regarding the Savings Plus Program contract periods. View the Notice of Proposed Action, Initial Statement of Reason, and proposed and final language of California Code of Regulations, Title 2, section 599.943 online. The proposed amendment allows Savings Plus Program to comply with the state’s competitive bidding process and for the program to be nimbler when needed. Where there is a high risk of an investment manager losing assets, the Savings Plus Program should be permitted to utilize a modified competitive search process to select a replacement investment manager to manage program assets. This flexibility allows the Savings Plus Program to meet its fiduciary obligations and safeguard program assets.
Any interested person, or his or her authorized representative, may submit written comments. Comments may also be submitted by facsimile (FAX) at 916-327-1885 or by e-mail to joseph.mesich@calhr.ca.gov. The written comment period closes at 12:00 a.m. on January 17, 2023. CalHR will only consider comments received by that time. Submit comments to the following address:
Joseph Mesich, Investment & Project Analyst
California Department of Human Resources
1515 S Street, North Building, Suite 500
Sacramento, CA 95811
CalHR has not scheduled a public hearing on this proposed action. However, CalHR will hold a hearing if it receives a written request for a public hearing from any interested person, or his or her authorized representative, no later than 15 days before the close of the written comment period.