Plain English Breakdown
The source text cuts off mid-sentence regarding penalties, so full enforcement details are unknown.
CalSavers Retirement Savings Changes
This law expands CalSavers eligibility to include household employers who issue W-2 forms, removes the board's authority over myRAs, changes contribution limits and deadlines, and updates vendor registration rules.
What This Bill Does
- Expands the definition of eligible employers to include household employers who hire workers for their homes and provide a W-2 tax form.
- Removes the CalSavers Board's authority to invest in myRAs (my Retirement Accounts).
- Requires the program to create an IRA account for participants eligible for federal or state retirement benefits, with at least 30 days of notice before opening the account.
- Changes the deadline for employers without a plan to join CalSavers from December 2025 to starting in December 2027.
- Increases the maximum limit on automatic salary contribution increases from 8% to 10% and requires notifying participants of this change.
- Eliminates the requirement for an online vendor registration clearinghouse, replacing it with a process where vendors provide information directly when contracting.
Who It Names or Affects
- Household employers who hire workers for their homes and issue W-2 forms.
- Private employees in California who participate in or are eligible for the CalSavers program.
- The CalSavers Retirement Savings Board, which administers the trust and program rules.
- Vendors that wish to contract with the board to provide services.
Terms To Know
- Household employer
- A person who hires or contracts someone to work in their home for personal household needs and provides a W-2 tax form.
- myRA
- My Retirement Account, an investment option the bill removes from the board's authority.
Limits and Unknowns
- The official text is truncated before describing specific penalties for employers who fail to comply.
- The effective date of these changes is not listed in the provided source material.
- The feasibility study on multi-state agreements does not guarantee that such agreements will be created.