June 30, 2022 marks the final phase-in for eligible employers to register and either begin offering a workplace retirement savings program under the CalSavers Retirement Savings Program or a private qualified retirement plan.
Eligible employers impacted by the June 30, 2022 deadline are those with five or more employees who are not currently offering their employees a workplace retirement savings program.[i]
CalSavers is a voluntary retirement savings program created by legislation passed in 2016 available to California workers whose employers do not offer a workplace retirement plan, those that are self-employed, or those who want to save extra for their retirement. Savings plan deductions are by automatic enrollment payroll deductions to an IRA program.
Retirement savings programs may be offered by employers via the private marketplace or by providing access to CalSavers. Employer participation in CalSavers is limited to facilitation of the program through registration, adding and maintaining their employee roster, and submitting employee contributions through payroll deductions. There are no employer fees and employers are not required to make contributions to employee accounts.
From an employer’s perspective, there are no registration limits placed on employees. This means that all employees are eligible to participate in CalSavers starting with their first day of employment regardless of hours worked or classification status (e.g., full-time, part-time).
CalSavers offers employer support through tips, templates, and FAQs. See below for links to important information about CalSavers:
Members with additional questions about CalSavers participation should contact Western Growers.
[i] Eligible employers already offering a workplace retirement savings plan are asked to notify CalSavers of their exemption through the registration portal.