In July 2019, the state is launching a new retirement program that will enable employers to provide their employees with a payroll deduction Individual Retirement Account (IRA) at no cost to the employer or taxpayer. CalSavers is a voluntary workplace IRA program for private sector workers designed to be simple and portable from job to job. CalSavers will be professionally managed by a private sector financial firm with oversight from a transparent public Board. State law will require all businesses with five or more employees to either offer a retirement savings vehicle from the existing market or register for CalSavers. Deadlines for employers to comply will roll out over a three year period based on the size of business.
CalSavers is a great way for nonprofit employers to provide their employees access to a portable retirement program. There are zero fees for employers; since CalSavers is not an employer sponsored plan, employers will have no fiduciary liability, and it will be administratively easy for employers to facilitate. Visit https://www.treasurer.ca.gov/scib/ or email CalSavers@treasurer.ca.gov to learn more about the program and how you can become an early adopter this fall.