CalSavers Sees Retirement Plan Registrant Increase

The CalSavers retirement savings program continued to support an increase in registered employers, submitted retirement plan contributions and participant-funded accounts in September, according to its latest participation report.

In September, the number of employers registered with the state-run program for private sector employees hit 119,045, while 44,755 made payroll deductions, and funded participant accounts reached 455,255.

CalSavers is one of 21 retirement savings programs sponsored by local governments: 19 state programs and two city programs. CalSavers’ automatic individual retirement account program held $613.7 million in total assets at the end of September, a slight drop from $615.4 million at the end of August.

“With enforcement efforts in full swing, CalSavers saw increases in many key areas in September, including registered employers, employers submitting contributions and—most importantly—funded accounts,” a CalSavers press release stated.

The dollar value of assets held in the CalSavers program dwarfs all other state-facilitated plans combined, according to data from Georgetown University’s Center for Retirement Initiatives. By comparison, through the end of August, OregonSaves held $215.5 million in total assets; Illinois Secure Choice held $133.7 million; the Massachusetts Defined Contribution CORE Plan held $25.1 million; Colorado SecureSavings held $14.3 million; Connecticut’s MyCTSavings program held $9.2 million; and MarylandSaves held $2.9 million. The programs were established at different times; those in California, Oregon and Illinois were all established by 2018.

In 2022, California passed a law to expand the state mandate to all employers with at least one employee, and, at the time, CalSavers surpassed 100,000 enrolled employers. The state has mandated that employers operating in California must register to participate in the program at different periods based on the number of workers employed.

Among those who have not received a notice to register in past year, employers with five or more employees must register by December 31. The California state-mandated registration deadline for employers with between one and four employees is December 31, 2025. CalSavers opened to all eligible employers in July 2019.

According to research from the Pew Charitable Trusts, as many as 56 million private sector workers lack access to a retirement savings plan through their jobs. States have stepped in, approving programs to provide workers with access to retirement plans.

During the 2023 state legislative sessions, at least 25 states and Washington, D.C. considered legislation to either establish new programs, amend existing programs or form study groups to examine options, according to data from the Georgetown Center for Retirement initiatives. Three new auto-IRA programs have been enacted this year—Minnesota, Nevada and Vermont—along with one new multiple employer plan in Missouri.