A CalSavers Pilot Retirement Savings Program Will Be Available to Employers on July 1, 2019

12 Jun

Retirement Sav Plan-19

CalSavers Retirement Savings Program Details:

CalSavers will now provide employees access to a retirement savings program without the administrative complexity, fees, or fiduciary liability of existing options for employers. All employers with at least five employees not now offering a workplace retirement savings option must now either begin offering one via the private market or provide their employees access to CalSavers.

CalSavers offers all California employees access to a workplace retirement savings vehicle that is voluntary, low cost and portable. CalSavers will open July 1st to all eligible employers and to the self-employed on September 1st. After enrollment begins, eligible employers can register for CalSavers at any time and will be required to comply by the following deadlines:

Size of Business and Deadlines:

Over 100 Employees = June 30, 2020
Over 50 Employees =June 30, 2021
Five+ Employees = June 30, 2022

This Plan ensures that all Californians have a path to financial security in retirement by providing a simple, portable, low-cost way for workers to invest in their futures. A mandatory program for businesses (with five or more employees) must offer employees CalSavers (or a qualified retirement plan chosen by the employer) to avoid a $750/per employee penalty for repeated non-compliance.

For employees, the pre-selected or default CalSavers payroll deduction is five percent of pay, automatically increasing one percent every year to eight percent of pay. But savers can change their payroll deduction rate at any time.

A Roth IRA is standard, allowing withdrawals without penalties or taxes. A traditional IRA option will be available by the end of the year. If the employee moves to another job, the savings can be transferred or left with CalSavers.

CalSavers Is Operated Solely Through Administrative Fees …
There’s No Cost to Taxpayers

Additional details are available at CalSavers.com.
Or Contact dondressler1@hotmail.com
The CalWorkSafety Consultants Are Here to Help Clients
With all Questions or Concerns About These New Notices.
Contact Us to Help You Sort Out Your Options

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