All California Employers with 5 or more employees are now mandated to offer a retirement savings vehicle or facilitate their employees’ access to CalSavers.
Registration and compliance are subject to the following schedule:
100+ employees must certify by 6/30/2020
50+ employees must certify by 6/30/2021
5+ employees must certify by 6/30/2022
Note that employers must either certify that they have a plan or register with CalSavers by these dates.
The tricky part – having a 401K plan in place is not enough, you must register and certify that you have a plan or face fines. Registering involves getting an access code, which takes a few days to get. Once you get the access code you then have to log back in and certify that you are compliant. The 3 stage process allows for several opportunities to forget and be subject to the fine.
Whether you decide to implement a 401K plan or opt in to the CalSavers retirement plan, you will need to get an ERISA bond or a Fidelity Insurance policy in place to protect the retirement assets. With investment choices to be made, Fiduciary Liability insurance will also be worth considering to protect the executives and managers of the retirement plan.
The good news – we have answers and resources that can help!
Have questions about the new law, or need assistance with a retirement plan implementation?
Have questions about ERISA Bonds, Fidelity Insurance or Fiduciary Liability?
Carol L. Corporales, CIC, MLIS | Commercial Insurance Broker
Direct: 858.202.6187 | Fax: 858-202-6188
10717 Sorrento Valley Rd., San Diego, CA 92121