Retirement Savings Program
CalSavers is coming soon
The most ambitious push to expand retirement security since the passage of Social Security in the 1930s became a reality on September 29, 2016 when Governor Jerry Brown signed Senate Bill 1234, championed by Senator Kevin de León. The California Secure Choice Retirement Savings Investment Board, chaired by State Treasurer John Chiang, is in the midst of developing and implementing the CalSavers Retirement Savings Program. The Board anticipates the Program will open with a pilot program in late-2018 and officially open for statewide enrollment in 2019.
Once implemented, the CalSavers program will ensure nearly all Californians have access to a workplace retirement savings plan. CalSavers offers employees a completely voluntary, low cost, portable retirement savings vehicle with professionally managed investments and oversight from a public, transparent board of directors.
CalSavers provides employers a way to offer their employees a retirement savings benefit without the administrative complexity, fees, or fiduciary liability of existing options for employers. Any employer with at least five employees that doesn’t already offer a workplace retirement savings vehicle will be required to either begin offering one via the private market or provide their employees access to CalSavers. The deadlines for employer compliance depends on the number of their employees. After CalSavers opens for enrollment, covered employers can register for CalSavers at any time and will be required to comply by the following deadlines:
|Size of business||Deadline|
|100+ employees||12 months after implementation (~January 2020)|
|50+ employees||24 months after implementation (~January 2021)|
|5+ employees||36 months after implementation (~January 2022)|
Employer Alert: Late 2019 is likely to be the earliest that large employers that do not offer a retirement plan to their employees will be required to provide access to CalSavers. The requirement will be phased in over a three-year period as outlined above. Any information to the contrary is wrong. Please contact our office if you are told otherwise by emailing CalSavers@sto.ca.gov.
To promote greater retirement savings for California’s private-sector workers who currently lack access to employer-sponsored retirement plans by providing access to a voluntary, low-risk, low-cost, portable retirement savings plan that enables direct payroll contributions into a personal Individual Retirement Account (IRA) managed by a private-sector financial firm overseen by the Board.
To create a workplace retirement savings plan that is: