CalSavers is California’s retirement savings program designed for the millions of Californians who don't have a way to save for retirement at their job. CalSavers was created by legislation passing in 2016 requiring California employers who do not sponsor a retirement plan and have 5 or more employees to participate in CalSavers - an automatic enrollment individual retirement account (IRA) with no employer fees or fiduciary liability.
California's employer mandate is phased in over three years, with deadlines based on employer size. The registration deadline for employers with more than 100 employees passed on September 3, 2020 (extended from June 3, 2020). Eligible employers with more than 100 employees who have not yet registered should do so as soon as possible to avoid penalties. The next deadlines are June 30, 2021 for employers with more than 50 employees, and June 20 2022 for eligible employers with at least five employees. Employers don't need to wait: they can register for CalSavers at any time. For more information on the deadlines click here.
Half of middle-income Californians are on track to face significant economic hardship in retirement, not to mention those already facing hardship today. Without meaningful savings, may Californians could struggle to get by on Social Security alone. Now more than ever, it is clear how vital it is for all individuals to have financial resiliency in the short- and long-term, and CalSavers was design for that purpose. For more information on our flexibility during this difficult time, please visit www.calsaver.com/COVID.
Designed to make retirement saving easy, 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 setting or choose their own. To ensure CalSavers works for our mobile workforce, savers keep their account as they move from job to job, and self-employed individuals can join too.
Please visit CalSavers.com for more information. If you need additional assistance, CalSavers has full time bilingual customer service staff and translation services available in more languages.