Updated: Aug 24
While employers are busy navigating the new world of COVID-19, it's still business as usual in many regards. On that note, employers shouldn't forget about their obligations under SB-1234, The California Secure Choice Retirement Savings Trust Act, and the
CalSavers program. Fortunately, the July 1, 2020 deadline for large employers (100+ employees) has been extended to September 30, 2020.
At this time, the deadlines for midsize and small employers (June 30, 2021 and June 30, 2022 respectively) remain unchanged. All businesses with more than 5 employees (covered employer) who do not offer a qualified retirement savings plan, are required to participate in CalSavers. If you are a covered employer offering a qualified retirement savings plan and will not participate in CalSavers, you still need to take the step to exempt your business with CalSavers before the deadline. For reference, here is the original article THRM posted on July 1, 2019 with details on SB-1234 and the CalSavers program.
The purpose of the Secure Choice Retirement Savings Trust Act, through the CalSavers Program, is to ensure that as many employees as possible have easy access to a retirement savings account. Qualified employees may participate in one of two ways: through their employer if available or as individuals.
The HR Manager consultants are available to assist you with evaluating and selecting the best retirement options for your organization, please feel free to reach out.