State-Run Retirement Savings Plan OK’d, Mandatory Enrollment Coming in 2020

California employers that don’t already offer a workplace retirement savings vehicle will be required to either begin offering one via private market or provide their employees access to CalSavers, a state-run retirement savings plan, as early as June 2020.

The CalSavers pilot program is open for employers to enroll; however, mandatory enrollment and contributions don’t go into effect until 2020. Employers can register now until the deadline but they don’t have to until their deadline.

Emergency regulations governing the CalSavers program were recently approved by the Office of Administrative Law.

CalSavers is the result of 2016 legislation enacting the Secure Choice Retirement Savings Program (SCRSP) for private sector workers whose employers do not offer a retirement plan.

The legislation requires employers with five or more employees that don’t offer specified retirement plans to put a payroll arrangement into place that requires employees to contribute a portion of their salary or wages to a retirement savings plan in the SCRSP, unless they opt out.

Click here to read the entire article.