CalSavers: retirement savings.
Vote required
Two Thirds
Fiscal committee
No
Appropriation
No
Current location
Appropriations
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
Assembly Bill 2650, the CalSavers: Retirement Savings Act, expands California’s retirement savings program by including household employers in the definition of ‘eligible employer.’ It also modifies the program’s structure, including establishing an IRA on behalf of eligible participants, creating a payroll deposit emergency savings account, and adjusting penalties for employers who fail to offer retirement savings options. The bill aims to increase retirement savings for more California workers and simplifies the program’s administration.
Key provisions
- Expands ‘eligible employer’ definition to include household employers.
- Establishes an IRA on behalf of eligible participants.
- Creates a payroll deposit emergency savings account for participants.
- Increases penalties for employers who fail to offer retirement savings plans.
- Eliminates the requirement for the board to establish a retirement investments clearinghouse.
- Modifies contribution escalation limits to 10% instead of 8%.
- Authorizes the board to assess the feasibility of multi-state retirement savings agreements.
- Requires employers to offer a payroll deposit retirement savings arrangement by December 31, 2027.
Who is affected
- California private employees
- Employers (including household employers)
- Financial institutions
- Small business owners
- California residents
Notable changes
Bill text
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Sponsors
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1 on record
Primary sponsor
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