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All eligible employers are encouraged to join at any time prior to their registration deadline or otherwise register their exemption.

• The CalSavers program at a high-level works as follows:
• Employers must offer a Roth IRA retirement vehicle through CalSavers if they don’t already sponsor a qualified retirement plan
• Enrollment in the plan is automatic for employees unless they formally opt out
• The default savings rate is 5% of gross pay, and employees may change their rate at any time (any may contribute only up to the IRS Roth IRA statutory
  maximum)
• The employer may not contribute to the employee fund
• There are no employer fees and no fiduciary responsibility
• Employee fees charged by the investment entity are permitted, but may not exceed 1% per year
• The State of California will run the plan if the employer doesn’t
• Participating employers must add employees and submit participating employees’ contribution via payroll deduction
• Employees can opt out and back in at any time.
• Employees’ accounts are portable and will stay with them even if they leave your employment.

That employees should save more money for their retirement is a given. What is not is whether a Roth IRA with a high minimum requirement, using electronic education and with state oversight, without a current tax deduction, is not.

We at Arrow can deploy a wealth of Strategic Partners and Advisors to provide our clients a comprehensive financial wellness series. This series may be customized, featuring personal investment education and planning, advice on administration and investing, benchmarking studies and an analysis on an array of retirement vehicles. Please contact [email protected]
to learn more.

More information about the CalSavers program can be found on its official website here:
https://www.calsavers.com/