CalSavers Program Update: New Small Business Mandates for Employers

CalSavers Program Update: New Small Business Mandates for Employers


As a California Employer, you are familiar with the CalSavers Retirement Savings Trust Act passed in 2016. As of June 30, 2022, this state-run program will require that employers with 5+ employees participate or offer a qualified retirement plan.

The goal of this program is to help individuals who do not have an employer-sponsored retirement plan (ex. 401K) save for retirement. With the deadline fast approaching there are two significant factors employers need to keep in mind:


All employers must register for CalSavers or have a qualified retirement plan in place by June 30, 2022. If you don’t, there could be penalties for your company.


State law requires employers to register with CalSavers by the deadline or offer their own retirement plan. Registration is currently open through the CalSavers portal. All employers with 5+ employees need to register through the CalSavers portal. When registering either sign up for the CalSavers program or select the exempt option. If you select the exempt option, you must have a qualified retirement plan in place.

If you’re not sure which plan you want to offer your employees, here is some additional information:

  • In the CalSavers Program, employers cannot "contribute" towards the employee's retirement plan.
  • CalSavers offers a Roth IRA, which is established by or for an employer under the program.
  • Roth IRAs are not the same as a 401K plan.
  • IRAs are Individual Retirement Accounts.
  • A 401K is a group plan with a defined contribution. Employees contribute a percentage of their salary towards their plan, while the employer may offer matching contributions.

For questions regarding the CalSavers program, employer size, qualified retirement plans, types of retirement plans available through CalSavers, penalties, or general information, check out the CalSavers website.

If you’re looking for information on how to implement a qualified retirement plan or other benefit programs, reach out to TSIB and speak with one of our Benefits Specialists to help you get started.

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