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LVCC members are invited to join this hour-long webinar on the CalSavers Retirement Program.

CalSavers: Compliance Deadline Approaching Eligible employers with five or more employees must register by June 30, 2022

State law now requires all businesses with five or more employees to facilitate CalSavers if they do not sponsor a retirement plan. Deadlines for employers to comply vary based on the size of the business. The next deadline for employers with five or more employees is June 30, 2022. The registration deadlines for eligible employers with more than 50 employees have passed. Eligible employers, who have not yet registered, should do so as soon as possible to avoid penalties. For more information on how to register, visit CalSavers.com.

California launched CalSavers, a new retirement program that enables employers to provide their employees with access to a payroll deduction individual retirement account (IRA) with no employer fees. For employees, CalSavers is a completely voluntary workplace IRA program designed to be simple and portable from job to job. Operating at no taxpayer expense, CalSavers is professionally managed by private sector financial firms with oversight from a transparent public board chaired by the State Treasurer.

CalSavers is an easy way for employers to comply with the mandate and help their employees save for their retirement. There are zero fees for employers. Since CalSavers is not an employer-sponsored plan, employers have no fiduciary liability, there are no forms for employers to collect or distribute, and employees manage their accounts directly with CalSavers.

With many people struggling to overcome financial setbacks caused by the pandemic, many employers are looking at retirement programs to help employees improve their financial wellness and save for the future, and as a way to recruit and retain talent.

Designed to make retirement saving easy, employees are enrolled automatically into CalSavers unless they choose to opt out. Once enrolled, employees can contribute to their personal retirement account automatically with each paycheck. Savers can either stick with the standard account settings or choose their own. To ensure CalSavers works for our mobile workforce, savers keep their account as they move from job to job.

Eligible employers don’t have to wait for their deadline and can sign up at any time! Individuals who don’t work for a participating employer and self-employed entrepreneurs can sign up on their own. For more information, or to join a webinar, please visit CalSavers.com. To stay connected follow them on Twitter and Instagram, like them on Facebook, or connect with them on LinkedIn.