State Run Retirement Plans
*We posted this article in Spring 2019 and again in Summer 2020--we are posting it for a third time to remind those of you with 50 or more employees you need to be registered in the program or offer another retirement plan by June 30, 2021.
As your efforts to retain good employees in the current labor market become more challenging, you might have considered offering a Retirement Saving Plan to your employees and for one reason or another decided against it. Well, the State of California beat you to the punch and will require such plans for employers beginning July 1, 2019.
In 2016, CA enacted the CalSavers Retirement Savings Program with the passing of SB 1234, which you may have read about in our 2017 Employment Law Overview. This bill gave the Board (California Secure Choice Retirement Savings Investment Board) three years to design and implement a program for those employers that do not currently offer a retirement plan and have 5 or more employees. If you do not offer any sort of retirement plan (i.e., 401(k), SIMPLE IRA, etc.), now’s the time to read on….