December 2, 2022
Amendment of California Code of Regulations, Title 2, section 599.942 Investments
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section 599.942 reflects the outdated statutory requirements and must be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.
