With all the changes to labor law over the past couple of years, one that has flown under the radar is the California mandate that requires employers to offer workplace retirement savings to their employees.
Download Allevity’s flyer here in PDF form!
Any employer with at least five California-based employees, at least one of whom is 18, that doesn’t already offer a workplace retirement savings vehicle will be required by state law to either begin offering one via the private market or provide their employees access to CalSavers.
CalSavers is California’s retirement savings program designed for the millions of Californians who lack a way to save for retirement at their job.
Retirement Eligibility and Deadlines
Employees are auto-enrolled and must visit the CalSavers website to opt out. Employers who are eligible can register for CalSavers at any time and will be required to comply with the following deadlines:
More than 100: Sept. 30, 2020
More than 50: June 30, 2021
5 or more: June 30, 2022
Allevity’s Retirement Savings Plan
Allevity also has its own retirement savings plan through TransAmerica. Some highlights of that plan include:
Eligibility
• First day of the month following 3 months of service
• Salary deferrals generally allowed to the limit of 100% of salary or the annual dollar limit plus additional ability to contribute the annual catch-up for employees over age 50
• Five-year vesting schedule at 20% per year of service.
Customized Plan – Customize your plan by specifying the level of the match formula, amending the plan for Safe Harbor, and electing a voluntary profit-sharing feature, which can also be amended for a specific contribution formula that targets key people.
Quality investment choices – the plan currently includes over 20 fund choices.
Reporting and record keeping – quarterly statements to employees as well as compliance testing and submission of 5500s.
If you haven’t addressed your workplace retirement options yet, we’re here to help! Just reach out to us and we’ll help you figure it out. Contact us now!
