Have You Finalized Your Retirement Savings Offerings?
June 12, 2020
Many of our clients are small and medium-sized California businesses, which means they are now required to provide their employees with access to retirement savings programs. To accomplish this, the State of California has recently rolled out the new with newly updated employer registration deadlines in effect beginning in September and spread out over next couple years.
CalSavers is available to California workers whose employers do not currently offer a workplace retirement plan, self-employed individuals, and anyone else who would like an additional way to save. Organizations that have five or more employees and don’t currently offer their own retirement plans must register for CalSavers by their deadline and facilitate their employees’ access to the program.
“This program is rolling out in phases, and your company’s registration deadline is dependent upon the number of people you employ,” says Grimbleby Coleman Manager LeeAnne Cardoza. “By this deadline, you’ll be required to provide your employees with access to a retirement savings outlet either through the private market or by electing to implement CalSavers.”
Registration deadlines for eligible employers are as follows:
- 100+ employees – Must be in compliance by September 30, 2020 (deadline extended due to COVID-19)
- 50+ employees – Must be in compliance by June 30, 2021
- 5+ employees – Must be in compliance by June 30, 2022
A few important notes:
- CalSavers is a completely voluntary retirement program. Participants can opt out or re-enroll at any time.
- Employees may reduce or increase the amount they contribute, as well as change the funds in which they invest.
- California law requires that CalSavers conduct an open enrollment period once every two years. Eligible employees that have previously opted out of the program shall be re-invited to participate under automatic enrollment. They must opt out at this time if they again do not wish to participate in the program.
You can count on us to keep you up to date with new programs or requirements for your business. For more information or assistance, please contact LeeAnne at email@example.com or give us a call at 209-527-4220.