CalSavers Retirement Savings Program is the State's new effort to level the playing field for small business workers, the self-employed, and the nearly 7.5 million Californians who lack access to a savings program at work.
CalSavers was launched statewide on July 1, 2019 and now requires all businesses with five or more employees to either offer a retirement savings vehicle from the private market or register for CalSavers. The deadlines for employers to register roll out over a three-year period based on the size of a business.
For employers, CalSavers will eliminate the three major concerns that small business owners cite as reasons for not offering a retirement plan: high fees, liability, and complex administration.
CalSavers offers Employers:
· Zero fees for employers to facilitate.
· No employer fiduciary liability because CalSavers is not an employer sponsored plan.
· Simple administration. All employers have to do is maintain an employee roster, and deduct and remit contributions. CalSavers does all the communication with employees.
For employees, CalSavers is a voluntary workplace Individual Retirement Account (IRA) program designed to be simple, low-fee, and portable from job to job. Employees will be automatically enrolled, but can choose to opt-out.
Eligible employers don’t have to wait for their deadline and can sign up at any time! Individuals who don’t work for a participating employer and self-employed entrepreneurs can sign up on their own beginning fall 2019.