CalNonprofits Articles

New type of retirement plan open to nonprofits: Join our CalSavers Webinar on November 1st and get your questions answered!

Starting next July, the state of California is launching CalSavers, a new retirement program that will enable employers (including nonprofits!) to provide their employees with a payroll deduction Individual Retirement Account (IRA) at no cost to the employer or taxpayer.

We already know that more than half of nonprofits offer some kind of retirement plan to their employees (a much higher percentage than for-profits). If you already have a plan, CalSavers isn't for you. But if you don't, CalSavers will become mandatory over the next three years.

To find out what CalSavers means for nonprofits and their employees, CalNonprofits hosted a webinar with Katie Selenski, the executive director of CalSavers in November 2018.  A recording of the webinar is now available on CalNonprofits Webinar Compilation page: CalSavers Retirement Plan is Coming! Here is what you NEED to know.

More background on CalSavers
CalSavers was created by legislation in 2016 (that CalNonprofits supported), to create a retirement plan for the 7.5 million employees in California whose employers do not offer a retirement program. The lack of a program like CalSavers has resulted in more than 75% of California’s low and moderate income retires relying exclusively on Social Security for their retirement income, creating significant economic hardships for them.

CalSavers is a voluntary workplace IRA program, designed to be simple and portable from job to job. Under state law, businesses with five or more employees will need to either offer a retirement savings vehicle, or register for CalSavers. This requirement will phase in over a three-year period, with larger employers having to meet it sooner.

CalSavers is a good option for nonprofit employers to consider (if they don’t already have a retirement plan). There are zero fees for employers; since CalSavers is not an employer sponsored plan, employers will have no fiduciary liability, and it will be administratively easy for employers to facilitate. For more information about the plan, visit: https://www.treasurer.ca.gov/scib/ or download this CalSavers fact sheet.

Add comment


Security code
Refresh

get connected module titleSign up to receive our emails on member benefits, events & webinars, tips & tools, and legislation & policies that affect nonprofits.
 
go to Facebook page for CalNonprofits     go to Twitter page for CalNonprofits     go to LinkedIn page for CalNonprofits
Become a member
Join us at CalNonprofits. Strengthen the voice of nonprofits in California and receive benefits and cost savings on a range of programs and services.
 

Stay informed on nonprofits news in California. We'll send you information about events and webinars, tips & tools, and legislation impacting the nonprofit community.