CalSavers Retirement Program
California law is beginning to phase in a requirement that most employers (5 or more employees) must either offer their employees an employer-sponsored retirement plan or facilitate their employees ability to participate in the new CalSavers retirement program.
Under this law, eligible employers must register with CalSavers no later than these deadlines:
More than 100 employees September 30, 2020
More than 50 employees June 30, 2021
5 or more employees June 30, 2022
What Employers Must Do
Are you an employer of 5 or more employees? Then you must register with the CalSavers program no later than the above dates, as applicable. If you already offer a qualified employer-sponsored retirement plan, you can register as exempt. If you do not offer an employer-sponsored plan, and do not wish to, you must register with CalSavers to facilitate your employees access to the program.
What Are Qualified Employer-Sponsored Retirement Plans
Qualified plans include:
- Qualified pension or profit sharing plans under 401(a)
- 401(k) plans;
- 403(a) plans;
- 403(b) plans;
- Simplified Employee Pension (SEP) plans;
- Savings Incentive Match Plan for Employees (SIMPLE) plans;
- Payroll deduction IRAs with automatic enrollment.
What is CalSavers?
CalSavers is a California retirement savings plan available to workers whose employers do not offer a workplace retirement plan, self-employed individuals, and others who want to save extra. Savers contribute to an IRA. The employer has limited responsibilities, and no fees or fiduciary responsibilities.
Eligible employers that offer a qualified employer-sponsored retirement plan can opt-out by registering as exempt. Those who do not offer a retirement plan must register with CalSavers for their employees to be able to access this retirement program.
For more information and to register (to facilitate your employees access or to declare your exemption), visit the CalSavers website.