CalSavers Moving Toward Implementation
The California Secure Choice Retirement Savings Program (CalSavers), California’s state-run retirement plan for private-sector employees whose employers do not offer a retirement plan, is moving closer to implementation.
The California Secure Choice Retirement Savings Investment Board met on Aug. 16. The agenda included
discussion of Resolutions No. 2018-06 and 2018-07: Approval to Execute Contracts for Program Administration and Investment Management. According to the San Francisco Chronicle
, 13 firms submitted proposals to administer CalSavers and manage the investment of its funds. The board chose Ascensus
to serve as administrator of CalSavers, and chose State Street Global Advisors
to provide investment management services; it notified them on Aug. 16 that they had been selected. “We’re honored to partner with California on this program in support of the retirement goals and dreams of its residents,” said Kevin Cox, head of government savings at Ascensus, in a press release.
The board also received an update on the rollout of the pilot program, as well as a report from its legal counsel concerning litigation before the U.S. District Court for the Eastern District of California over Cal Savers in Howard Jarvis Taxpayers Ass’n., et al. v the California Secure Choice Retirement Savings Program (Case No. 2:18-cv-01584-MCE-KJN).
As of June 30, 2017, CalSavers has just over $1.7 milllion in cash and investments in the state Treasury.
CalSavers, set in motion by the enactment of Senate Bill 1234 on Sept. 29, 2016, is expected to start a pilot program later this year and to open the program officially for statewide enrollment in 2019.
When Participation in CalSavers Is Mandatory
|Employer Size || Date Participation Mandatory |
|100 or more employees || January 2020 |
|50-99 employees || January 2021 |
|5-49 employees || January 2022 |