Pass the Retirement and Personal Savings Protection Act

This initiative seeks to establish stricter legal protections for individual retirement accounts and personal savings against state-level tax increases and retroactive policy changes. The goal is to ensure that long-term financial planning remains predictable and secure for California residents who depend on 401(k) plans, IRAs, and personal savings accounts for retirement. The measure would amend the state constitution to require a two-thirds supermajority vote in the legislature before any new tax or fee could be applied to retirement income, pension distributions, or interest earned on personal savings. Proponent Kurt R. Oneto, a financial planner based in the Sacramento area, argues that California’s high cost of living already places retirees at a disadvantage compared to residents of states with no income tax on retirement distributions. The initiative also proposes creating an independent Retirement Security Review Board that would evaluate proposed legislation for its impact on retirees before bills reach a floor vote. Opponents, including the California Budget and Policy Center, contend that the measure would reduce the legislature’s flexibility to address future budget shortfalls and could shift the tax burden onto working-age residents and lower-income households. The fiscal analysis estimates the measure could reduce state general fund revenue by $800 million to $1.2 billion annually if it prevents planned adjustments to retirement income taxation. Supporters counter that protecting retirement savings encourages older residents to remain in California rather than relocating to tax-friendlier states, which preserves the broader tax base. The initiative requires approximately 874,000 valid signatures to qualify for the ballot. If approved by voters, the protections would take effect for the tax year beginning January 1 following certification of the election results.