State Treasurer Fiona Ma reminded employers with more than 50 employees of the upcoming June 30, 2021 registration deadline for the CalSavers Retirement Savings Program, the State’s new program for workers in the private sector that lack access to a workplace retirement plan. The reminder comes as the pioneering program hit a milestone of more than 350,000 total enrollments and is nearing 150,000 actively managed accounts.
California state law requires employers with more than 50 employees to register for CalSavers by June 30, 2021 if they do not offer a qualified retirement plan. CalSavers has no fees for employers and is designed to be simple for employers and savers alike.
“The pandemic recession has made retirement more insecure for many Californians,” said Treasurer Ma. “CalSavers can play a critical role in easing some of those worries by helping Californians save for a secure retirement through a simple and portable program that is free for employers.”
More than 11,000 employers have registered since the statewide launch in July 2019 and participants have already saved $78 million with CalSavers. “Access to automatic savings at work has proven to be a powerful tool in reducing the retirement savings gap, and that’s why CalSavers was created,” Executive Director Katie Selenski said. “We have easy tools to help employers get started, with free webinars provided in multiple languages and a multilingual field team on hand to guide employers through the onboarding process.”
Eligible employers can register at any time and begin facilitating the program, even before their registration deadline. The registration deadline for employers with at least five employees is June 30, 2022 and the deadline for employers with more than 100 employees was September 30, 2020. Noncompliant employers will face penalties of $250 per employee and additional penalties for sustained noncompliance.
Learn more at www.calsavers.com.