Proposed CalSavers Regs Would Address Eligibility, Processes and Duties

The California Secure Choice Retirement Savings Investment Board has proposed regulations that would directly address questions of eligibility, processes and duties, as well as further define terms and clarify sections of the law that created the CalSavers Retirement Savings Program.

The board adopted the proposed regulations at its Jan. 28 meeting and granted staff the authority to conduct the formal rulemaking process.

The proposed regulations would define:

• terms and definitions used in the regulations and further clarify the meaning of definitions in the statute;
• employer eligibility for the program;
• the duties for participating employers and the processes by which participating employers shall comply with the CalSavers requirements;
• the default account settings for participants that do not make an alternative election;
• the alternative elections available to participants; and
• processes and policies for contributions, distributions, and transfer of savings.

The proposed regulations also would establish:

• the deadlines and processes by which eligible employers shall register for CalSavers;
• processes for enrollment of eligible employees into the program;
• policies for participation of individuals outside of an employment relationship with an eligible employer; and
• the means by which the program shall determine employer eligibility for the program.

Effect of the Proposed Regulations

The board argues that implementation of these regulations will benefit participating individuals by providing them access to a workplace retirement savings program and increasing the likelihood they will accrue meaningful retirement savings and improve their financial security.

The board anticipates that the impact of the proposed regulations will depend on a number of factors, including:

• whether and when an individual decides to participate in the program;
• individuals’ decisions regarding how much they contribute and how they invest their contributions; and
• investment performance.

The board says that the proposed regulations are necessary for the operation of CalSavers and that they would make application and interpretation of the laws, rules, and procedures governing CalSavers consistent.

Input Invited

The board is accepting comments on the proposed regulations through April 15, and will hold a public hearing on the proposed regulations on that date.