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CalSavers: California’s Free Retirement Program

Learn how the CalSavers program works and how you can educate your clients about this fantastic new program.
 
In July 2019, the state is launching a new retirement program that will enable employers to provide their employees with a payroll deduction Individual Retirement Account (IRA) at no cost to the employer or taxpayer. CalSavers will eliminate the three major concerns that small business owners cite as reasons for not offering a retirement plan: cost, liability, and complexity.
  • Fees = zero for employers to offer CalSavers. 
  • Employers will have no fiduciary liability. 
  • CalSavers will be administratively easy for employers to facilitate.
CalSavers will be professionally managed by a private sector financial firm with oversight from a transparent public Board. State law will require all businesses with five or more employees to either offer a retirement savings vehicle from the existing market or register for CalSavers. Deadlines for employers to comply will roll out over a three year period based on the size of business.
 

About the Presenters

Jonathan Herrera is the Outreach Coordinator for the CalSavers Retirement Savings Program, the state’s pioneering retirement savings program which will provide a path to retirement security for the seven million Californians who currently lack access to a retirement savings vehicle at work. Jonathan has 17 years of experience working in both personal and government finance. Prior to joining the CalSavers team, he spent 3 years at the State Treasurer’s Office helping California’s local agencies invest their idle funds in the Local Agency Investment Fund (LAIF), and 13 years at Citibank where he assisted with the organization’s business development and outreach strategies, and worked with a team of advisors to provide wealth management services and solutions for individuals, families, and businesses. Jonathan has a BA in Government from California State University, Sacramento.

Mark Herbert directs Small Business Majority’s operations throughout California. As California Director, he works with the state outreach team to build relationships with business organizations and small business owners. He also directs Small Business Majority’s policy work by representing the voice of small business owners among policymakers in Sacramento. Previously, Mark served as the organization’s Project Manager and Outreach Manager in California where he developed strong relationships with small business owners and business organizations across the state. Prior to joining the organization, he worked for state and federal lawmakers where he directed business operations and built relationships with small business owners and key stakeholders as they pertained to public policy issues.