On August 26, 2022, Governor Newsome signed legislation that amends the statute governing CalSavers, California’s mandatory payroll reduction IRA savings plan to lower the threshold number of employees required to subject a California employer to the law from five to one on December 31, 2025. Currently, employers with five or more employees that do not
As Latest CalSavers Deadline Approaches, Some Thoughts On Its Possible Effect
A California employer with 5 or more employees that does not provide a retirement plan must register with CalSavers, the state’s mandated payroll deduction IRA program by June 30, 2022. Additionally, a bill has passed the California Senate, SB 1126, and is being considered by the Assembly that would lower the threshold number of employees
CalSavers Is Here To Stay As Supreme Court Refuses To Hear ERISA Challenge
On Monday, February 28, 2022, the United States Supreme Court refused to accept the appeal of the Ninth Circuit’s dismissal of the Howard Jarvis Taxpayer’s Association’s challenge to California’s mandated payroll deduction IRA program, known as CalSavers. The Association maintained the state law was preempted by ERISA. This effectively puts an end to the challenge
CalSavers Begins Assessing Penalties-Threshold Number Of Employees Drops To 5 on June 30
The United States Supreme Court is considering whether to hear an appeal from United States Court of Appeals for the Ninth Circuit, dismissing a case brought by the Howard Jarvis Taxpayers Association claiming that CalSavers, California’s mandated payroll deduction IRA program, is preempted by ERISA (See Happy New Year! Supreme Court Expected To Be Busy
Inflation Adjusted Plan Limits Reiterate Advantages of Employer Plan Over CalSAVERS; Supremes May Accept Preemption Challenge
The IRS announced the inflation adjusted qualified plan and IRA contribution limits for 2022 in Notice 2021-61 on November 4, 2021. The new numbers include significant increases. However, importantly the limit on contributions to IRAs remain the same at $6,000, with an additional $1,000 if 50 or older. On the other hand, the limit for
Ninth Circuit Holds CalSavers Is Not Preempted By ERISA. . . 6/30 Deadline Approaching
On May 6, 2021, the United States Court of Appeals for the Ninth Circuit upheld a District court’s dismissal of a complaint filed by the Howard Jarvis Taxpayer’s Association (HJTA), challenging California’s state mandated IRA program, CalSavers, as being preempted by ERISA.
CalSavers is California’s mandated auto-enrollment payroll deduction IRA program that requires employers of
Will DOL Withdrawing Support Doom Revival Of ERISA Challenge To CalSavers?
On February 5, 2021, the United States Department of Labor withdrew its amicus brief supporting the Howard Jarvis Taxpayers Association’s (HJTA) appeal of the dismissal of its lawsuit challenging CalSavers as being preempted by ERISA. See No Fooling HJTA Appeals Dismissal Of CalSavers Preemption Decision. CalSavers is California’s payroll deduction IRA program requiring employers,
California Rideshare Companies At The Intersection Of AB5 and Proposition 22
On August 10, 2020, a California Superior Court Judge granted a preliminary injunction against rideshare companies Uber and Lyft requiring them to stop classifying their drivers as independent contractors violating AB5. The injunction was stayed for 10 days to give the companies time to appeal. AB5 codified the California Supreme Court’s Dynamex decision and became
CalSavers Proposes Extending 6/30/20 Deadline Due To Pandemic
The California Secure Choice Retirement Savings Investment Board has filed a Notice of Proposed Emergency Regulation Action with the Office of Administrative Law (OAL) to adopt emergency regulations to amend the current CalSavers regulation to extend the June 30, 2020 registration deadline for Eligible Employers with more than 100 employees to September 30, 2020. Currently,
No Fooling HJTA Appeals Dismissal Of CalSavers Preemption Decision
On April 1, 2020, the Howard Jarvis Taxpayers Association filed a Notice Of Appeal with the United States District Court for the Eastern District of California, indicating that it is appealing the court’s March 10, 2020 dismissal of the Association’s lawsuit alleging that CalSavers, California’s mandated payroll deduction IRA program, was preempted by ERISA. See