Compliance Deadline Approaching – Eligible employers with more than 50 employees must register by June 30, 2021
State law now requires all businesses with five or more employees to facilitate CalSavers if they do not sponsor a retirement plan. CalSavers makes saving for retirement easy for employees.
What Is It:
CalSavers was created by legislation passed in 2016 requiring California employers that do not sponsor a retirement plan to participate in CalSavers – an automatic enrollment individual retirement account (IRA) with no employer fees or fiduciary liability. Operating at no taxpayer expense, CalSavers is professionally managed by private sector financial firms with oversight from a public board chaired by the State Treasurer. California launched CalSavers to give employers an easy way to comply with the mandate and help their employees save for retirement.
How to Enroll:
Employees are enrolled automatically into CalSavers unless they choose to opt out. Once enrolled, employees can contribute to their personal retirement account automatically with each paycheck. Savers can either stick with the standard account settings or choose their own. To ensure CalSavers works for our mobile workforce, savers keep their account as they move from job to job.
CalSavers is designed to be easy to administer and has no employer fees. Operating at no taxpayer expense, CalSavers is professionally managed by private sector financial firms with oversight from a transparent public board chaired by the State Treasurer.
Eligible employers with more than 50 employees must register by June 30, 2021. Deadlines for employers to comply vary based on the size of business. The deadline for employers with five or more employees is June 30, 2022.
The registration deadline for employers with more than 100 employees passed on September 30, 2020. Eligible employers with more than 100 employees who have not yet registered, should do so as soon as possible to avoid penalties. Visit CalSavers.com for more information on how to register.
For more information, visit https://www.treasurer.ca.gov/calsavers/