CalSavers

[Cynchbeast]

In California, are there penalties for a sponsor with existing qualified plan but failed to opt out by the applicable deadline?

[Lou S.]

https://employer.calsavers.com/home/employers/program-details.html?gclid=CjwKCAjwieuGBhAsEiwA1Ly_nXE7Ra9sR0bx02GErhzJflOQ0y6Zg9pcTGDfK5Emhus97HoNYDO1WhoCLJ0QAvD_BwE

I don't believe there is any penalty if you sponsor a qualified plan whether you opt out or not.

And for those that are supposed to sign up but are late, I don't think the penalty starts until 90 days after you are noticed. That may change in the future but for now seems fairly easy to avoid the penalties unless you willfully ignore notices.

 

 

[Gilmore]

CalSavers - final-regulations 2020 May.pdfCalSavers - final-regulations 2020 May.pdf

For what it's worth, Section 10001(d) of the statute says, "Exempt Employers may, but need not, inform the Administrator of their exemption from the Program...", for employers with plans that don't register.  Although registering is not difficult.