CalSavers, the state-run retirement program for employees whose employers do not offer a retirement plan, grew in the fourth quarter of 2020 while and the opt-out rate held steady, according to the CalSavers Retirement Savings Board.
Growth
The board reports growth in registrations, accounts and assets by year’s end, during the fourth quarter and from November to December. The amount and number of withdrawals also grew in December.
By year’s end, the board reports, more than 7,250 employers across the state had registered with the program. CalSavers Retirement Savings Board Executive Director Katie Selenski in a press release also noted that 250,000 more workers had been enrolled in the program, and 96,018 were actively participating.
In the last quarter of 2020, the number of funded accounts was 250% higher than by the end of the third quarter, and total assets grew 157%. A key factor in the figures for the fourth quarter was the Sept. 30 deadline for employers with 100 or more employees to register with the program, the first employer deadline. The deadline originally had been June 30, but was extended to Sept. 30 due to the pandemic. The board attributes the jump in the number of funded accounts to that deadline, and also says that the growth in total assets was driven largely by new savers employed by businesses that registered just before Sept. 30.
The board also reports growth from Nov. 30 to Dec. 31:
|
Measure |
As of Dec. 31, 2020 |
As of Nov. 30, 2020 |
Change, Nov-Dec |
% Change, Nov-Dec |
|
Employers registered |
7,278 |
5,937 |
+ 1,341 |
+ 22.6% |
|
Employers that have started payroll deductions |
2,203 |
1,622 |
+ 581 |
+ 35.8% |
|
Accounts enrolled, 1st contribution pending |
148,003 |
140,937 |
+7,066 |
+ 5% |
|
Total assets |
$28,369,064.31 |
$19,879,193.05 |
+$8,489,871.27 |
+42.7% |
|
Average funded account balance |
$295.46 |
$294.90 |
$0.55 |
+0.2% |
Withdrawals
Participants may make withdrawals from their accounts as well. The amount withdrawn, as well as the number of accounts whose holders made withdrawals, also grew in December.
|
Measure |
As of Dec. 31, 2020 |
As of Nov. 30, 2020 |
Change, Nov-Dec |
% Change, Nov-Dec |
|
Withdrawals |
$2,219,957.53 |
$1,622,683.77 |
+$597,273.76 |
+ 36.8% |
|
Accounts with a partial withdrawal |
295 |
231 |
+64 |
+27.7% |
|
Accounts with a full withdrawal |
6,929 |
4,790 |
+2,139 |
+ 44.7% |
Opt-outs
Employees may opt out of participating in CalSavers. The board reports that the op-out rate in December was roughly the same as that in November, falling by 0.37 percentage points to 30.45%. The rate rose from June to September but has fallen since then.
|
Month |
Opt-Out Rate |
Change Since Previous Month |
|
December |
30.45% |
- 0.37 percentage points |
|
November |
30.82% |
- 3.71 percentage points |
|
October |
34.53% |
- 0.01 percentage points |
|
September |
34.54% |
+ 1.03 percentage points |
|
August |
33.57% |
+ 2.03 percentage points |
|
July |
31.54% |
+ 1.62 percentage points |
|
June |
29.92% |
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