California’s Mandatory Retirement Savings Program Deadlines Reminder
CalSavers Retirement Savings Program (CalSavers) is a state-run retirement savings program for private-sector employees whose employers do not offer a retirement program. The program was slowly introduced to employers over the last two years, providing a deadline based on employer size. We are now at the final deadline for employers with at least five employees that don’t already offer a qualified workplace retirement savings plan. Employers will be required by California law to offer and facilitate employee access to CalSavers, by June 30, 2022.
CalSavers will auto-enroll employees in a standard savings and investment election after an employer provides them with their payroll list. Employees can customize their savings amount and their investment preferences. Employees may also choose to opt-out of the program. CalSavers is administered by a private-sector financial services firm and overseen by a public board chaired by the State Treasurer.
For more information, check out CEA’s Fact Sheet, CalSavers What Employers Need to Know. Additional information can be found on the CalSaver’s website, including info on setting up your account.
Exempt Employers
- If you have less than five employees as determined by an average of the previous year’s report of W2 employees provided by the EDD.
- If you already offer a qualified retirement savings plan, your employees cannot participate and you are not required to register.
- Independent Contractors or employees who work for a company with less than 5 employees may opt to enroll on their own accord by visiting calsavers.com to enroll independently.
Eligible Employers
An employer’s general obligation is limited to:
- Registering for CalSavers
- Creating a payroll list to add employees to CalSavers (you will have 30 days to complete registration)
- Calculating the appropriate deduction for each employee (shown on the employer’s account page)
- Submitting employee contributions to the CalSavers program, and
- Keeping the payroll list up-to-date.
Limited Employer Role
CalSavers does not have any employer fees. It also does not require any employer contributions; employers only send in the employee contribution. Employers are not fiduciaries of the program.
Employers are to remain neutral about the program and should not encourage or discourage participation or provide any investment advice. Employers are not involved in managing investment options or processing distributions. CalSavers provides information on the program to the employee and will answer questions that employees have.
Employee Decision Period
An employee has three options:
1. Do Nothing.
If an eligible employee takes no action within 30 days, they will be automatically enrolled with the standard savings and investment elections:
- 5% of the employee’s gross income earned with the facilitating employer.
- Effective April 2021, instead of the first $1,000 of contributions being invested into the CalSavers Money Market Fund, initial contributions will be invested in the CalSavers Money Market Fund for 30 days, after which all subsequent contributions, along with any earnings in the Money Market Fund, will be re-allocated to a CalSavers Target Retirement Fund based on saver age and the year closest to when a person that age is expected to retire.
- Detailed information about the contribution amounts, automatic increases and investment options can be found in the CalSavers Program Disclosure Booklet.
2. Customize the Account. The employee can choose to customize the account, for instance by changing the contribution rate and investment choices.
3. Opt Out. An employee can opt out of participating in CalSavers at any time online, by phone, or mailing in a form. An employee can rejoin the program and begin contributing at any time through the same methods.
Penalties for Non-Compliance
An eligible employer that, without good cause, fails to allow its eligible employees to participate in CalSavers, will be required to pay a fine of up to $250 per eligible employee. Further non-compliance will result in an additional penalty of $500 per eligible employee.
Sierra Business Council is conducting this survey to inform an update to the Sierra Economic Development District’s regional Comprehensive Economic Development Strategy (CEDS) in El Dorado, Plumas, Placer, Sierra, and Nevada Counties.
Ride only in designated areas and at a safe speed.
Always wear helmets and clothes that cover as much of your body as possible.
Don't ride on paved roads, except where permitted by law. ATVs are classified as off-highway vehicles.
Never ride under the influence of alcohol or drugs.
Carry only as many passengers as your ATV is designed for.
Ride an ATV that’s right for your size.
Actively supervise younger riders. ATVs are not toys.
If your ATV comes with seatbelts, wear them.
