California Employers Must Comply with State Mandated Retirement Plan

February 19, 2019

CalSavers is a new California law designed to encourage employees to save for retirement. Employers with at least five employees, that do not already offer an employer-sponsored retirement plan, will be required to begin offering a retirement plan or provide their employees access to CalSavers. When an employer participates in CalSavers, an automatic two to eight percent (2-8%) of pay is deducted from each employee’s paycheck and deposited to the employee’s CalSavers account, unless the individual employee elects a different amount or completely opts-out of the program. A CalSavers account is a personal IRA account overseen by the CalSavers Retirement Savings Investment Board.