The CalSavers Registration Deadline is Approaching
by Lewitt Hackman’s Employment Practice Group
What is CalSavers?
CalSavers is a state-run retirement savings program designed for California employees over the age of 18 whose employers do not offer private retirement plans. Under California law, any employer that does not provide a 401(k) or other qualified retirement option must register with CalSavers and allow their employees to participate.
Employers are not responsible for paying fees, answering questions, managing investment options, or processing distributions. Eligible employees maintain their account directly through the CalSavers program and can opt out at any time.
December 31, 2025, Deadline
Previously, employers with five or more employees, who do not offer a private retirement plan, were required to register with CalSavers. However, in 2022, the Legislature passed Senate Bill 1126, which expanded the registration requirement for all employers who do not sponsor a retirement plan.
The deadline for employees with 1-4 employees to register with CalSavers is December 31, 2025.
Exemptions
Certain businesses are not required to participate in the program:
- Business who do not employ anyone other than the business owners.
- Businesses that already sponsor a qualified retirement plan.
- Government entities, religious organizations, or tribal organizations.
Businesses who believe they are exempt must submit an exemption reason together with supporting documents through the CalSavers employer portal.
Penalties
Employers who fail to register with the program as required may be facing enforcement action and financial penalties which range between $250-$500 per employee.
Contact us if you have any questions regarding the upcoming deadline.