This law section defines key terms related to the CalSavers Retirement Savings Program. The 'Board' refers to the CalSavers Retirement Savings Board, and the 'Program' is the retirement savings plan under the CalSavers Act. An 'Eligible employee' is someone employed by an 'Eligible employer', but it excludes employees covered under certain federal laws or those whose employers contribute to specific pension funds.

An 'Eligible employer' is a state business entity with at least one eligible employee, not including sole proprietors or self-employed individuals without employees, and those that already offer certain retirement savings plans. A 'Participating employer' is one that allows its employees to save through payroll deductions into retirement accounts.

An 'IRA' is an individual retirement account as defined by U.S. law, and 'myRA' refers to a federal retirement program. 'Payroll deposit retirement savings arrangement' is a setup for employees' payroll contributions to retirement accounts. The 'Trust' is the CalSavers Retirement Savings Trust, and a 'Vendor' is a company that provides retirement investment products or services in California.

This section creates the CalSavers Retirement Savings Board within the California state government, consisting of nine members, including the state Treasurer as the chair. These members include representatives from the government and individuals appointed by various state bodies.

Board members are unpaid but can be reimbursed for travel expenses incurred during board duties. They are prohibited from having any personal financial interests in the program's investments or borrowing its funds.

Board members must manage the program's funds responsibly, prioritizing the interests of the participants. Their duties involve designing and implementing the CalSavers Retirement Savings Program, which includes managing investments prudently and minimizing participant fees while maximizing income replacement.

The board must have an investment policy statement detailing objectives, guidelines, and risk management programs and must review it annually at a public hearing. The board must appoint investment managers paid from the program's funds, and they must publicly report on their investments monthly.

This law establishes the CalSavers Retirement Savings Trust to help private employees in California save for retirement. It is a voluntary and low-cost plan that is managed by a board and funds all its administrative costs from its own resources.

The trust separates its funds into a program fund for investments and an administrative fund for operational costs. Investments can be managed by various parties, including private managers or public systems. Administrative costs are capped at 1% of the program fund after six years.

Contributions from employees and employers are solely used for participant benefits, program administration costs, and investments. Additionally, the trust has specific exemptions from certain sections of the Corporations Code.

The CalSavers Retirement Savings Program will have one or more options for retirement savings through payroll deductions decided by the board.

This section outlines the powers and responsibilities of a board responsible for managing a trust fund. The board can make contracts, adopt a seal, handle investments, and accept money from various sources for the fund. It can hire a program administrator, set their duties, and employ staff. The board is also allowed to engage financial and service providers, procure insurance, set investment limits, and work with retirement systems and financial services to efficiently run the program. They can also ensure the program meets tax and legal requirements, and they have to set rules to maintain federal tax benefits. These duties may be delegated to an executive director by the board.

This section explains the powers and responsibilities of the board in managing a retirement savings program. The board can design and operate the program to encourage people to save and invest wisely. The program should be simple, easy for employers to manage, and allow benefits to be transferred easily. The board can pool resources to reduce costs and provide educational resources on saving for retirement and tax benefits. It reports progress to employers and employees, verifies qualifications, sets up processes for employee contributions, and manages enrollments. Employers can use the program to submit employee contributions or make additional contributions themselves, provided these align with tax rules.

This law requires the board to create and distribute an electronic employee information packet for the retirement savings program. This packet explains the program's benefits, risks, and how employees can participate or opt out. Important disclosures include that financial advice should not be sought from employers, employers aren't liable for employee decisions or the retirement program, and the program isn't guaranteed by California. Employees must acknowledge they've read and understood these disclosures.

The packet also includes a clear opt-out form for employees who choose not to participate in the retirement savings program. New employees get the packet when hired, while current employees receive it when the program starts at their workplace.

Before opening the CalSavers Retirement Savings Program, if enough vendors show interest and provide funding, the board must set up a Retirement Investments Clearinghouse on their website and a vendor registration process. This allows for information on employer-sponsored retirement plans and payroll deduction IRAs to be available to eligible employers.

Vendors wanting to be listed on the board’s website must offer detailed information about their services. They need to share their experience in providing retirement plans, describe their investment products, and disclose any fees charged. They must also provide information on the types of services offered, counseling options, financial strength, and how they comply with laws. Additionally, vendors should explain their ability to offer diverse investment options, describe administrative services, and certify the accuracy of information provided.

This law states that vendors can register once a year to participate in the Retirement Investments Clearinghouse. After their initial registration, they need to renew it every five years if they want to keep participating. The board is responsible for giving public notice before the initial registration and for the annual and renewal registration periods.

This law gives the board the authority to remove vendors from a registry if they provide false information, fail to pay fees on time, or don't report important changes. If a vendor submits false information, they have 60 days to fix it. The board must remove vendors if their investment products are from companies that aren't properly licensed or have lost their licenses for bad behavior. Additionally, the board must create an appeals process for vendors who are denied registration or removed.

This law requires the board to maintain a Retirement Investments Clearinghouse, which provides information about retirement investment products from registered vendors. The clearinghouse must include objective comparisons of these products and vendors.

Additionally, it must have information on the investment performance based on average annual total returns determined by a reputable rating service. The board's website must also offer a table showing the total fees paid on a $5,000 investment with a 5% return over various time periods, while clarifying that this is for comparison purposes and not a prediction of future performance.

This law requires that the board must inform eligible employers about the Retirement Investments Clearinghouse by including a notice and the website address in communications they send out.

This law section outlines how the costs for setting up and maintaining a vendor registration system and a Retirement Investments Clearinghouse are shared among vendors. Registered vendors must pay a one-time fee and ongoing renewal fees that cover the system's costs. These fees are split among vendors based on their number, covering establishment, maintenance, and administrative expenses. Any trust funds cannot be used for these purposes.

This law states that the board and program managing a retirement investment product clearinghouse are not responsible for the accuracy of the information provided by vendors. The clearinghouse merely hosts information from vendors for reviewing their investment products.

Vendors cannot use the program's logo or suggest endorsement by the board. If vendors violate this rule, they might be removed from the registry. Additionally, the board and program are not liable for the vendors' actions.

This law outlines the requirements for California employers to offer a payroll deposit retirement savings plan to employees who don't have access to an employer-sponsored retirement plan. Employers with over 100 employees must offer this plan within a year, those with over 50 within two years, and those with 5 or more within three years. By the end of 2025, even employers with just one employee must comply if they don't already provide a retirement plan.

Employees are automatically enrolled but can opt out. Employer and employee contributions generally start at 3% of the salary, adjustable between 2% and 5%, with possible annual increases capped at 8%. Employers already offering a qualified retirement plan, like a 401(k), are exempt from these requirements.

The CalSavers Retirement Savings Board is responsible for ensuring that employers comply with allowing eligible employees to participate in the CalSavers Retirement Program. If an employer does not comply, the board can issue a penalty notice, and charges can amount to $250 per employee, increasing to $500 if the issue continues. The Franchise Tax Board is involved in issuing penalties based on non-compliance. Employers have the right to appeal these penalties in writing to the Franchise Tax Board. The CalSavers Board must cover any administrative costs incurred by the Franchise Tax Board in handling these matters.

This law states that employers are not liable for their employees' choices to join or leave a state-run retirement savings program, nor for the investment decisions or performance of the program. Employers are not considered fiduciaries and won't be responsible for managing or funding the program. Even if a federal law overrides the program, employers won't be liable like they would be for employer-sponsored plans. Employers are also shielded from liability for any actions they take under regulations governing their role in the program. This includes ensuring employees can participate via payroll deductions. If employers make voluntary contributions, it won't change their relationship or obligations as defined here.

This law states that the state of California is not responsible for paying retirement savings benefits earned through a specific program. The state and its funds are not obliged to cover these benefits.

By August 1 each year, the board must submit an annual audited financial report about the trust's operations to the Governor, the Controller, the State Auditor, and the Legislature. This report should follow standard accounting principles and be conducted by an independent certified public accountant. It must include details on the costs related to external consultants and contractors.

Additionally, the board must provide extra information such as any studies or evaluations completed that year, a summary of the trust's benefits, including participant numbers, and any other relevant details for a comprehensive disclosure of the trust's operations.

This law states that the board overseeing a retirement savings program can't run it if the IRA accounts don't qualify for favorable tax treatment under federal law or if the program is seen as an employee benefit plan under federal rules. Before starting the program, the board must report to the Governor and Legislature, confirming that certain conditions are met. These include ensuring the program doesn't count as an employee benefit plan, that the IRAs get the tax benefits they should, and that employer roles are clearly defined. Additionally, the program should use a third-party administrator to minimize employer involvement with employees.

This law is meant to be understood in a flexible way to fully achieve its goals. The powers granted by this law should be interpreted broadly to ensure that its objectives are met, rather than limiting the powers given.

The CalSavers Retirement Savings Program was implemented in 2017 to help individuals save for retirement. The program includes providers of in-home supportive services, as long as certain conditions are met, such as legal compliance and manageable costs.

The state and employers should not bear financial liabilities, and the program must be structured to prevent such risks.

The board overseeing CalSavers determines costs for its operation and collaborates with employers to simplify employee participation. The program also emphasizes comprehensive education for workers and employers, particularly small businesses, through various resources like websites, helplines, and training sessions.

This law allows the board to create, change, or remove regulations related to this title, and these actions are considered emergencies. This means certain usual procedural requirements are bypassed to address them quickly.

This law states that payroll deposit IRA accounts from the CalSavers Retirement Savings Program must be treated the same way as any other IRA when determining someone's eligibility or benefits for programs that require income evaluation.

This law allows initial funding for startup and first-year administrative costs to come from the state's General Fund, as specified in the annual Budget Act. The board is required to repay this amount, along with interest, calculated based on the earnings rate of the Pooled Money Investment Account. Future administrative costs will be covered by a separate administrative fund.