The CalSavers Retirement Savings Board reports that employer registrations and employee participation have increased in CalSavers, the state-run program that provides retirement plan coverage to employees whose employers do not offer a plan.
The numbers reflect the passing of the new deadline by which employers with more than 100 employee were required to have registered for the program. The deadline had been June 30, 2020, but because of the pandemic, on April 15, 2020 the board delayed the deadline till Sept. 30, 2020. Employers could register voluntarily before that date.
In the first month since those registrations began, the increases were as follows:
|
Measure |
Sept. 30 |
Oct. 31 |
Change, Sept. 30-Oct. 31 |
% Change |
|
Employers registered |
3,500 |
4,851 |
+1,351 |
+38.6% |
|
Employers that started payroll deductions |
855 |
1,127 |
+272 |
+31.8% |
|
Funded accounts |
27,544 |
43,376 |
+15,832 |
+57.5% |
|
Accounts enrolled, first contribution pending |
51,346 |
86,772 |
+35,426 |
+69% |
The number of pending accounts, in which employees have been registered but whose accounts are withing the opt-out window, meaning that they still may opt out, increased by 77% in that month and stood at 124,278 by Oct. 31. The opt out rate was unchanged and remained at 34.5%.
Employers with more than 50 employees are to register by June 30, 2021, and employers with five or more employees must register by June 30, 2022.
