Less than two months remain for employers with five or more employees in the Golden State to register with CalSavers, the state-run retirement plan for those whose employers do not offer one.
CalSavers, enacted in 2012 but not launched until July 1, 2019, has required employers to either begin offering a retirement plan if they had not done so or register with the program, in waves based on the size of their workforce. Employers with more than 100 employees were to do so by Sept. 30, 2020; those with 50 or more employees had until June 30, 2021.
The next deadline—by which employers in California with five or more employees must offer a plan or register with CalSavers—is June 30, 2022.
Earlier in 2022, the state announced that CalSavers was getting ready to impose penalties on employers with more than 100 workers with no retirement plan who haven’t registered. The penalties are $250 per employee, and will be levied on employers by the CalSavers Retirement Savings Board in partnership with the Franchise Tax Board.
“Employers are the key to ensuring this program can fulfill its mission of offering all Californians a path to financial security in retirement.” California Treasurer Fiona Ma said in a May 2 press release.
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