Are Workers of Color, Almost Half of Which Are Latinos
Work for Small Businesses With Less Than 100 Employees
In California Today
Californians Work for
Employers Who Do Not
Offer a Retirement Plan
CalSavers is Under Development
The most ambitious push to expand retirement security since the passage of Social Security in the 1930s became a reality on September 29, 2016 when Governor Jerry Brown signed Senate Bill 1234. The CalSavers Board, chaired by Treasurer John Chiang, is in the midst of developing and implementing the CalSavers retirement program. The Board anticipates the Program will open with a soft launch in summer or autumn of 2018 and officially open for statewide enrollment in early-2019.
Once CalSavers is fully operational, employers with 5 or more employees that don't already provide a retirement plan will be required to either begin to offer a retirement plan of their choosing (no employer match necessary) or provide their employees access to CalSavers:
- Employers with more than 100 employees will need to offer a retirement plan or provide access to CalSavers within 12 months after the Program is open for enrollment; Employers with more than 50 employees will need to offer a retirement plan or provide access to CalSavers within 24 months after the Program is open for enrollment; and
- Employers with more than 5 employees will need to offer a retirement plan or provide access to CalSavers within 36 months after the Program is open for enrollment.
Employer Alert: The employer requirement will not go into effect for at least two years. Late 2019 is likely to be the earliest that large employers that do not offer a retirement plan to their employees will be required to provide access to CalSavers. The requirement will be phased in over a three-year period as outlined above. Any information to the contrary is wrong. Please contact our office if you are told something different so we can correct the source by emailing email@example.com.
We want your input
The Program is initiating the rulemaking process to adopt regulations. The Board issued a Notice of Proposed Emergency Regulatory Action March 5, 2018. Later this month, the Program will file emergency regulations with the Office of Administrative Law.
To promote greater retirement savings for California’s private-sector workers who currently lack access to employer-sponsored retirement plans by providing access to a voluntary, low-risk, low-cost, portable retirement savings plan that enables direct payroll contributions into a personal Individual Retirement Account (IRA) managed by a private-sector financial firm overseen by the CalSavers Board.
To create a workplace retirement savings plan that is: