Deadline for State’s New Retirement Savings Program

An important deadline for the state’s new retirement savings program is rapidly approaching.  The deadline for employers with 50 or more employees to register for CalSavers is June 30, 2021.

CalSavers is a state-run retirement program for California workers whose employers do not offer a retirement plan.  Historically, employers have not been legally required to offer retirement benefits to their workforce, but California is among the growing number of states to pass legislation making it mandatory.

The rollout of the new program has been gradual to give employers time to prepare accordingly.  However, eventually all California employers with at least five employees will be required to offer their employees a form of retirement savings plan.

California employers with 100 or more employees were required to register for CalSavers by September 30, 2020.  Employers with 5 to 49 employees have until June 30, 2022 to register.

Employers who do not already offer a retirement plan must either (a) begin offering one through the private market or (b) provide their employees with access to CalSavers.

Employers who already offer a retirement plan, or who begin offering a retirement plan through the private market rather than CalSavers, still must certify their exemption by the deadline.

It should be noted that employees are not required to participate in CalSavers or any other retirement savings program; employers are simply required to provide them with the opportunity to do so.

You can learn more about CalSavers, register, or certify your exemption online through the CalSavers website.

 

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