In 2023, CalSavers was beset by the summer doldrums. The CalSavers Retirement Savings Board reports that this last summer, the program grew by some measures, but remained stable or even shrank slightly by others.
Employer registrations were lower at the end of summer than they were at its start; however, they were growing ever so slightly from July to August. The number of payroll contributing accounts grew consistently, as did assets; however, the average funded account balance was falling slightly as Labor Day approached.
Withdrawals
Participants may make withdrawals from their accounts as well. The amount withdrawn and the number of account holders who made withdrawals grew consistently through the summer.
Opt-Outs
Participants may opt out of CalSavers. The percentage of participants opting out fell slightly throughout the summer. Interestingly, this suggests that while the number of employers registered with the program slipped, at the same time, the percentage of employees who stayed in the program grew.
CalSavers, formally launched on July 1, 2019, has required employers to either begin offering a retirement plan if they had not done so or register with the program, in waves based on the size of their workforce. Employers with more than 100 employees were to do so by Sept. 30, 2020; those with 50 or more employees had until June 30, 2021. As of Jan. 1, 2023, nearly all employers are able to participate in CalSavers. Employers with fewer than five employees will be required to register after Dec. 31, 2025, if they have not already done so.
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