The California Secure Choice Retirement Savings Investment Board posted proposed emergency regulations to implement the Secure Choice mandatory payroll deduction IRA program on March 5, 2018, stating it intended to file them with the Office of Administrative Law after 5 days. However, on March 22, 2018, the Board posted a notice that the rule making process for the proposed emergency regulations would not be initiated until late summer to give the Board time to consult with a yet to be hired third-party administrator for the program and to ensure the most effective coordination.
The program, which the Board has re-named CalSavers Retirement Savings Program (CalSavers), when implemented, will require California employers of a certain size who don’t maintain a tax-qualified retirement plan to automatically enroll employees into CalSavers, a state run, payroll deduction IRA program. Employers are also required to deduct contributions from employees pay and contribute them to the program unless the employee opts out. The Board hopes to have the program implemented beginning next year with it applying to employers with 100 or more employees. In its second year it will apply to employers with 50 or more employees, and in its third year, employers with 5 or more employees.
For more details on CalSavers, come see me speak on “CalSavers: If You Don’t Have a Retirement Plan, One Will Be Provided For You” at the Capital Forum on Pensions on May 16, 2018. For more information, follow this link https://wpbcsacramento.org/event-2865770 .