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Calsavers (CA)

The CalSavers Retirement Savings Program is portable workplace retirement savings program for private sector workers whose employers are unable to offer their employees a way to save for retirement. CalSavers is run by the state and funded by modest employee contributions, so it involves minimal requirements for employers. You can learn more by signing up for an upcoming educational event, or read on for an overview of what small businesses need to know about the program. 

What is CalSavers?

  • CalSavers is a voluntary workplace retirement savings program being implemented by the state that enables small businesses and employees to make an automatic payroll contribution into a personal IRA retirement account overseen by the CalSavers Retirement Savings Investment Board.
  • The program is designed to be self-sustaining, so there will be no taxpayer funding and no employer or state liability for the program.

How does CalSavers impact employers?

  • Employers do not contribute to funds, manage funds or have any responsibility for financial advice. Employers must use their existing payroll system to send employees’ contributions to the fund each month.
  • Small business owners support the CalSavers Program. Small Business Majority’s scientific opinion polling found two-thirds of small business owners in California support a state retirement savings program that would help small businesses and their employees save for the future.
  • Many small businesses would like to offer retirement options to their employees—to help attract a talented workforce and boost employee morale—but can’t afford the overhead and administrative costs. CalSavers provides a way for small businesses employees to participate in a retirement program without incurring the associated burdens of employer-sponsored retirement programs.
  • Nearly 80% of those who work for small businesses do not have access to a retirement savings option at work; meanwhile, the small business market is not being adequately served by the financial services industry. CalSavers helps serve an underserved population that wants to save for retirement.

What are the requirements for small businesses?

  • Businesses with 100 or more employees are now required to provide a qualified retirement option, or enable their employees to make an automatic contribution from their paycheck into their CalSavers account
  • The administrative requirements for employers are minimal, and employees can choose whether they want to participate or opt-out of the program.
  • Employers with 1-4 employees are able to register for Calsavers starting January 1, 2023. These employers and employers with fewer than five employees will have until December 31, 2025, to register.
  • For more information on how to apply, watch this short instructional video.

What businesses qualify for the program?

  • The program does not apply to businesses that already offer retirement plans.
  • Small business owners with fewer than five employees must enroll in CalSavers. Employees without a retirement option at work and the self-employed may choose to enroll in CalSavers. Once enrolled, they can link their bank to their CalSavers account in order to make and manage deposits into the program.

What is CalSavers' new employer incentive program?

  • CalSavers' new employer incentive program aims to encourage early adoption of the program by awarding 2,000 current CalSavers participants with $500. 
  • To qualify, register early, add employees and process at least one contribution by the end of the drawing period. Employers must maintain compliance throughout the campaign.
  • There are two drawing periods. The first closes at the end of July, and the second at the end of November 2025. 1,000 employers will be selected in each drawing for a total of $1 million in prizes.

Where can I find more information and enroll?

  • To enroll your small business in CalSavers call (855) 650-6916 or visit CalSavers.com
  • If you have questions about the CalSavers Program, please contact Bianca Blomquist, California Director: [email protected].