CalSavers is a state-run retirement program for private-sector workers, which aims to facilitate saving for retirement, especially when an employer does not offer a retirement plan. Here's what you need to know:
Key Points About CalSavers:
No Cost to Employers: There are no fees for employers to participate, nor is there any requirement for employer contributions.
No Fiduciary Liability: Employers do not have fiduciary responsibilities with respect to the program.
Mandatory Registration: Employers with 1 or more employees that do not offer a retirement plan must register with CalSavers by December 31, 2025.
Registration Deadlines:
Businesses with over 100 employees: Deadline passed on September 30, 2020
Businesses with over 50 employees: Deadline passed on June 30, 2021
Businesses with 5 or more employees: Deadline passed on June 30, 2022
Businesses with 1 or more employees: Deadline is December 31, 2025
For New Businesses or Changes in Business Size:
Businesses that become newly eligible (e.g., by employing five or more individuals) or cease to sponsor their retirement plans must register by the end of the relevant calendar year.
Additional Information:
Further details on state laws, employer mandates, and specific deadlines are available through the program's resources.
It is imperative to fulfill this mandate by the specified deadline if it applies to your company. Late registration could result in penalties or compliance issues.
If you require assistance with the registration process or more information on how CalSavers can benefit your employees, please do not hesitate to reach out to us.