We previously reported that several years ago, California designed a workplace retirement savings program known as CalSavers for private sector workers whose employers do not offer a retirement plan. Under CalSavers, employers with five (5) or more employees are required to either provide their own workplace retirement savings program (such as a 401(k) plan) or register for the CalSavers program and facilitate employees’ contributions to Individual Retirement Accounts.
Eligibility and compliance deadlines for CalSavers are based on employers' average number of employees in the previous calendar year. The deadlines passed for employers with 100 or more employees (September 30, 2020 deadline) and those with 50 or more employees (June 30, 2021 deadline). If they have not already, employers meeting these thresholds should immediately contact CalSavers to register to be in compliance with the law. The below additional deadlines are fast approaching.
- By June 30, 2022, employers with five (5) or more employees must register with CalSavers or certify as exempt (because they already offer a qualified retirement plan).
- By December 31, 2022, newly eligible employers must register or certify as exempt. In Spring 2022, CalSavers reassessed employer eligibility based on employee data submitted to the Employment Development Department (EDD) as of December 2021.
Businesses located in California should have already received registration notices and materials from CalSavers. We recommend prompt registration to avoid penalties.
For more information about the CalSavers program and how to register, employers may visit the CalSavers website here.