The typically hot inland areas of the Golden State may have been torrid this summer, but one thing at least has been cooling: CalSavers employer registrations and contribution levels.
Registrations had been steadily growing since 2019. But employer registrations dropped from May 31, 2023 to June 30, a phenomenon that was repeated from June 30 to July 31. Similarly, contribution statistics show some volatility and decline.
Registrations
Formally launched on July 1, 2019, CalSavers 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.
Wave 1: Employers with more than 100 employees were to register by Sept. 30, 2020
Wave 2: Employers with 51-100 employees were to register by June 30, 2021
Wave 3: Employers with more than 5-50 employees were to register by June 30, 2022
Wave 4: Employers with fewer than five employees were to register by Dec. 31, 2022
So as of Jan. 1, 2023, nearly all employees are able to participate in CalSavers if their employers do not already offer a retirement plan. Employers with fewer than five employees will be required to register after Dec. 31, 2025, if they have not already done so.
The start of registrations, and the gradual expansion of registration requirements, explained the increase in employer registrations. But the last deadline was at the end of 2022. Since then, the increase in registrations has slowed.
And by late spring and summer, the number of employer registrations was falling. Not a dramatic dropoff, but a decrease that has lasted longer than just one month.
Contributions
Average and median contributions to CalSavers accounts have shown some volatility and decline since Spring 2023.
Finding out More
Reports concerning CalSavers monthly statistics are available here.
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