VBJ October 22 online

THE VALLEY BUSINESS JOURNAL
12 www.TheValleyBusinessJournal.com
October 2022
CalSavers Retirement Savings Program Registration Deadline Has Passed
for Employer of Five or More Employees Not Sponsoring a Retirement Plan –
Time to Register Now!
By Donald W. Hitzeman, Esq.
All employers in California who
employ five or more employees and
who do not provide a qualified retirement
savings program were required
by the California Government Code
to register for the CalSavers Retirement
Savings Program, an automatic
enrollment individual retirement
account (IRA) with no employer fees
or fiduciary liability, according to the
Program’s website at https://www.
treasurer.ca.gov/calsavers/.
This offers the employees of
small California businesses a means
of saving for retirement short of the
employer adopting and administering
a 401(k) or other similar retirement
plan themselves.
The CalSavers Retirement Savings
Trust Act [California Government
Code Sections 100000 - 100050] was
enacted in 2016, but gave employers
of five or more employees until June
30, 2022 to register for the plan.
For those employers who have
registered for the plan, be aware
that a waiting period is not required
for employees to participate, there are
no employer contributions that will be
accepted under the plan and employers
must upload required information about
newly participating employees within
30 days of their hire date through the
program’s employer portal. Otherwise,
there is minimal employer involvement
in the program.
If an employer offers a qualified
retirement plan already, the employer
still needs to register their company on
the CalSavers website and request an
exemption from the state’s retirement
program.
If an eligible employer does not register
its employees for the program, the
employer will likely be receiving notification
of a violation of the Government
Code and will have 90 days from the
notice date to register. Those qualified
employers who are required to register
and have not done so are subject to penalties
ranging from $250.00 to $750.00
per employee, depending on the length of
delay in complying with the registration
requirements.
Finally, as of January 1, 2023, the
requirements to register and administer
the CalSavers plan will extend to all
California employers with at least one
employee who is not an owner of the
business, with registration for those employers
required by December 31, 2025.
Donald W. Hitzeman is a shareholder
with Reid & Hellyer, A Professional
Corporation, and an experienced Business
Law Litigator and Transactional
Attorney. He has over 38 years of legal
experience, including advising business
owners and operators on employee
issues, as well as general business
litigation, transactional matters and
estate planning. He may be reached at
his Murrieta office at (951)695-8700 or
dhitzeman@rhlaw.com.
“
If an eligible employer
does not register
its employees for the
program, the employer
will likely be
receiving notification
of a violation of the
Government Code...
Don Hitzeman