California CalSavers Retirement Savings Program

The CalSavers Retirement Savings Program is California’s state-facilitated retirement savings program designed to expand access to retirement saving for private-sector employees who do not have an employer-sponsored retirement plan. The program enables eligible workers to save through automatic payroll deductions into an individual retirement account (IRA). Official program information is available on the
CalSavers official website.

What Is CalSavers?

CalSavers is administered by the California Secure Choice Retirement Savings Board and provides a workplace savings option when an employer does not offer a qualified retirement plan. The program overview is explained on the
How CalSavers works page.

Which Employers Are Required to Participate?

Under California law, many private-sector employers with at least one employee in California must either offer a qualified retirement plan or facilitate CalSavers. Employer requirements and compliance guidance are provided by the California Employment Development Department in CalSavers employer requirements.

Employers that already offer a qualified plan (such as a 401(k), 403(b), SEP IRA, or SIMPLE IRA) are generally not required to register for CalSavers, provided the plan is maintained.

Which Employees Are Eligible?

Employees who work for a participating employer may be eligible for CalSavers based on program rules. Employee participation is voluntary and eligible employees may opt out. Details are provided in the CalSavers FAQ.

How the CalSavers Program Works

Automatic Enrollment

Employers submit employee information to CalSavers. Eligible employees are notified and will be automatically enrolled after the applicable notice period unless they opt out. Enrollment steps are described in How CalSavers works.

Contributions

Contributions are made through payroll deductions to an IRA in the employee’s name. Contribution options and saver controls are described on the
CalSavers contributions page.

Employer Responsibilities

Participating employers are responsible for registering, uploading employee information, facilitating payroll deductions, and remitting employee contributions. Operational guidance for employers is available in the CalSavers employer help center.

Employers do not contribute to accounts and do not manage investments. The employer role and program requirements are also summarized by the EDD in
CalSavers employer requirements.

Registration Deadlines

California implemented phased registration deadlines by employer size. Current deadlines and compliance timelines are published by the EDD in CalSavers employer requirements.

Penalties for Non-Compliance

Employers that do not comply may be subject to penalties assessed per eligible employee after notice periods. Enforcement and collections information is provided by the California Franchise Tax Board in its
CalSavers enforcement guidance.

Employee Rights

Employees can opt out, change contribution rates, update investment selections, and keep their account when changing jobs. Saver options are described in
CalSavers saver information and in the CalSavers FAQ.

Official Resources

• CalSavers official website
• CalSavers employer portal
• California EDD: CalSavers employer requirements
• California FTB: CalSavers enforcement

Conclusion

The California CalSavers Retirement Savings Program is a state-administered initiative designed to increase access to retirement saving for workers without employer-sponsored plans. While employee participation is voluntary, eligible employers must register and facilitate payroll deductions unless they offer a qualified retirement plan. Employers should follow official guidance, meet registration deadlines, and maintain compliance to avoid penalties.

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M. Spik

Editor
25 years of experience managing tax, accounting, payroll, and employment-related information portals. Editor of Accounting Portal since 2011.
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