Fresno, California – Datatech is watching the progress of the new CalSavers program signed into law on September 29, 2016. CalSavers, also known as Senate Bill 1234, was designed to promote greater retirement savings for California’s 7.5 million private-sector employees who currently lack access to employer-sponsored retirement plans. Expect the CalSavers soft launch to be this summer or fall.
Datatech Programming is fully aware of this new law and as developments occur we’ll be sure to provide you with direction on any updated regulations, how we’ve added any functionality in Datatech software and when the program gets off the ground.
California State Treasurer John Chiang is the CalSavers Board Chairman and his office puts out notifications about the program. The latest from Chiang is that CalSavers anticipates the CalSavers program will launch later this year and officially open for statewide enrollment in early 2019.
Says Chiang, “We look forward to rolling out CalSavers in the near future and will be working with employer groups and the business community to spread the word about how the program can aid millions of Californians with their retirement, while also helping businesses currently unable to offer plans compete with those that do.”
What is CalSavers? Once the program is fully up and running, employers with 5 or more employees that don’t already provide a retirement plan will be required to either begin to offer a retirement plan of their choosing or provide their employees access to CalSavers. CalSavers will be self-sustaining through participant fees and there will be no cost or liability for the employer or taxpayers.
Here’s what the new California law requires:
- Employers with more than 100 employees will need to offer a retirement plan or provide access to CalSavers within 12 months after the Program is open for enrollment; Employers with more than 50 employees will need to offer a retirement plan or provide access to CalSavers within 24 months after the Program is open for enrollment; and
- Employers with more than 5 employees will need to offer a retirement plan or provide access to CalSavers within 36 months after the Program is open for enrollment.
The CalSavers program will be phased in over three years. Late 2019 is the earliest large employers that do not offer a retirement plan will be required to provide access to CalSavers.