CalSavers: retirement savings.

(1) Existing law, the CalSavers Retirement Savings Trust Act, administered by the CalSavers Retirement Savings Board, establishes the CalSavers Retirement Savings Program and the CalSavers Retirement Savings Trust. Under existing law, the trust consists of a program fund and an administrative fund with trust moneys that are continuously appropriated and administered by the CalSavers Retirement Savings Board for the purpose of promoting greater retirement savings for California private employees. Existing law requires eligible employers to offer a payroll deposit retirement savings arrangement so that eligible employees may contribute a portion of their salary or wages to a retirement savings program account in the program, as specified. Existing law defines "eligible employer" for purposes of the act to mean a person or entity engaged in a business, industry, profession, trade, or other enterprise in the state, excluding specified federal, state, and local governmental entities, with 5 or more employees and that satisfies certain requirements to establish or participate in a payroll deposit retirement savings arrangement. This bill would expand that definition of "eligible employer" to include a person or entity, as described above, that has at least one eligible employee and that satisfies the requirements to establish or participate in a payroll deposit retirement savings arrangement, and would additionally exclude from the definition of "eligible employer" sole proprietorships, self-employed individuals, or other business entities that do not employ any individuals other than the owners of the business. By expanding eligibility under the act, the bill would remove a restriction limiting expenditure of funds and authorize the expenditure of continuously appropriated moneys for a new purpose, thereby making an appropriation. (2) Existing law authorizes an employer to choose to have a payroll deposit retirement savings arrangement to allow employee participation in the program under the terms and conditions prescribed by the board. Existing law requires eligible employers with more than 100 eligible employees and those with more than 50 eligible employees, that do not offer a retirement savings program, to have a payroll deposit retirement savings arrangement to allow employee participation in the program within 12 or 24 months, respectively, as prescribed. Existing law requires all other eligible employers that do not offer a retirement savings program, within 36 months after the board opens the program for enrollment, to have a payroll deposit retirement savings arrangement to allow employee participation in the program. This bill would instead require eligible employers with 5 or more employees and that do not offer a retirement savings program to have a payroll deposit savings arrangement to allow employee participation in the program within 36 months after the board opens the program for enrollment. By December 31, 2025, the bill would require eligible employers with one or more eligible employees and that do not provide a retirement savings program, to have a payroll deposit savings arrangement to allow employee participation in the program.