The California Secure Choice Retirement Savings Board has released a report on the first six months of the Golden State’s retirement savings program for residents whose employers do not offer a retirement plan.
Under the program, California employers with five or more employees that don’t offer a retirement plan must either sponsor a retirement plan or participate in CalSavers. It was launched on July 1, 2019.
According to the report, as of Dec. 31, 2019:
Employers
- 628 employers had registered
- 142 employers had started payroll deductions
Participation
- There were 3,762 funded accounts
- There were 4,033 accounts that had been established but to which contributions had not been made yet
- 258 employees had left the program
- The opt-out rate was 30%
Dollars and Cents
- Assets totaled $1,421,847
- The average contribution rate was 5%
- Contributions totaled $1,560,822
- There had been 382 full and 60 partial withdrawals that amounted to $154,520
- The average account balance was $378
Future Rollouts
The program’s three-year phased rollout has staggered registration deadlines based on employer size, as follows:
|
Employer Size |
Deadline by Which Registration Is Mandatory |
|
More than 100 employees |
June 30, 2020 |
|
More than 50 employees |
June 30, 2021 |
|
More than five employees |
June 30, 2022 |
For more information on state-run plans, Visit our state auto-IRA plan resource center.
