Mandated Retirement Plan Going Into Effect

The CalSavers program (formerly known as California Secure Choice) was passed into law back in 2016 and is now going into effect.  It is a program designed to encourage employees to save for their retirement when a retirement plan is not offered by their employers.

All California employers with 5 or more employees will be required to either sponsor a retirement plan or to join CalSavers by the deadlines below. Once registered, employees are automatically enrolled unless they opt out.  Standard contribution is 5% annually with a 1% increase up to 8% unless employees opt for a different rate plan, or opts out altogether.

If an eligible employer fails to allow employees to participate without good cause, penalties can be accessed of $250.00 per eligible employee up to $500.00 per eligible employee if found in non-compliance for more than 180 days.

 

Here are your deadlines for enrollment:

100+ Employees                               September 30, 2020

50+   Employees                               June 30, 2021

5+     Employees                               June 30, 2022

For more information try these websites:

https://employer.calsavers.com/

https://www.treasurer.ca.gov/calsavers/toolkit/data/employer_overview.pdf