A new retirement mandate is kicking in for businesses. Here’s how city leaders can help

David Teykaerts is the executive director of the CalSavers Retirement Savings Board.

State law now requires employers to offer a qualified private retirement program, such as a 401(k) or the auto-individual retirement account program available through CalSavers. Some businesses have not come into compliance with the mandate and are now receiving penalty collection notices from the California Franchise Tax Board.

Penalties for non-compliance can add up quickly. They start at $250 per employee and can rise to $750 per employee for continued non-compliance. Here’s what city leaders can to do help businesses reach compliance and potentially avoid penalties.

City leaders should actively advise local businesses to promptly engage with CalSavers. If local businesses receive penalty notifications from CalSavers or the Franchise Tax Board, they should immediately contact CalSavers before making any penalty payments.

Business owners who take quick action can potentially avoid heavy penalties. Doing so also helps their employees fund their own retirement savings, which strengthens local communities.

CalSavers isn't just about compliance. It offers employers the chance to support their employees' financial futures without out-of-pocket costs. The program provides an array of complimentary resources, including webinars, materials, and a dedicated support team, to ensure businesses understand and can easily navigate their obligations. Some notable resources include:

CalSavers website

• Comprehensive FAQs, templates, and program details.
• Regularly scheduled employer-focused webinars.

Employer client service line: (855) 650-6916

• Available Monday through Friday, 8 a.m. to 8 p.m.
• Multilingual support to ensure all businesses can be assisted.

Field support: fieldsupport@calsavers.com

• Tailored support for businesses initiating the program.
• Informative sessions to educate employees about their financial futures.

The CalSavers program was enacted by statewide legislation to help address the retirement security crisis in California. Your leadership and guidance can steer our community businesses in the right direction, and not only ensure compliance but a brighter financial future for all.