CalSavers Resources

Learn About the CalSavers Retirement Savings Program

CalSavers Retirement Savings Program will provide millions of California workers with an automatic way to save for retirement. CalSavers aims to help workers in the private sector who don’t already have access to a retirement plan through their employer.

CalSavers is a State program where workers can automatically enroll in an individual retirement plan to help save for retirement if their employers do not already sponsor a company retirement plan. Employees can opt-out of the program any time they wish to. The CalSavers program is meant to be for all employees (short-term and part-time included ) to help them organize a plan to save for retirement.

CalSavers requires that employers with 5 or more workers register with CalSavers – to promote saving a cut of an employee’s paychecks into a Roth IRA – should the employer not already provide their employees with a company-sponsored retirement plan.

The program addresses three common causes of why employers haven’t been offering retirement plans: cost, administrative burden, and the fiduciary obligation of sponsoring a retirement plan.

CalSavers approaches these matters for both the employees and employers and cost-free to employers. The CalSavers program is made to be as easy to facilitate their employees’ payroll deductions. It is not the plan sponsor, so employers don’t have fiduciary liability.

California Payroll Offers CalSavers Connect. California Payroll will automatically submit the employee payroll deductions amounts to the State CalSavers program every pay period.

There are also three requirements for employers to be aware of when deciding on their enrollment with CalSavers if they do not have or plan to incorporate a company-sponsored retirement plan for their employees.

  1. Businesses that have more than 100 employees must register with CalSavers by September. 30, 2020.
  2. Companies with 51 to 100 employees have until June 30, 2021, to register.
  3. Businesses with only 5 to 50 employees have until the following year, June 30, 2022


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