CalSavers, the state-provided retirement plan for employees whose employers do not provide one, was launched on July 1, 2019. Now, more than two and a half years later, where does it stand?
Registration
Registration was set to take place in three waves:
- Wave 1: Employers with more than 100 employees had to register by Sept. 30, 2020.
- Wave 2: Employers with 51-100 or more employers had to register by June 30, 2021.
- Wave 3: Employers with five or more employees must register by June 30, 2022.
CalSavers has reported that the number of registered employers more than tripled in 2021. As of Jan. 31. 2022, here’s where it stands, according to the CalSavers Retirement Savings Board:
Registrations by Wave
Wave | Registered Employers | Exempted Employers | Employers that Responded | Total Estimated Mandated Employers | Response Rate |
Wave 1 | 1,696 | 5,442 | 7,138 | 7,833 | 91.13% |
Wave 2 | 3,580 | 5,203 | 8,783 | 11,283 | 77.84% |
Wave 3 | 21,772 | 49,200 | 70,972 | 267,982 | 26.48% |
Total | 27,048 | 59,845 | 86,893 | 287,098 | 30.27% |
Registrations, Month to Month
Measure | As of Oct. 31, 2021 | As of Nov. 30, 2021 | As of Dec. 31, 2021 | As of Jan. 31, 2022 |
Employers registered | 17,025 | 21,191 | 23,203 | 27,048 |
Employers that have started payroll deductions | 6,277 | 6,566 | 7,059 | 7,865 |
Engagement
As with participation, employers and employees also were actively engaged in CalSavers in 2021.
Employers. The number of registered employers tripled to more than 23,000 in 2021.
Employees. Almost all—95%—of participating employees accepted the automatic but voluntary escalation of their contribution rate by one percentage point. For most of them that meant an increase from 5% to 6%.
Assets
Participants’ assets grew dramatically, reports the Board, and in aggregate they were contributing $16 million per month by the end of 2021, through an average contribution of $150 per month.
Assets, Month to Month
Measure | As of Oct. 31, 2021 | As of Nov. 30, 2021 | As of Dec. 31, 2021 | As of Jan. 31, 2022 |
Payroll contributing accounts | 216,504 | 225,179 | 234,842 | 244,534 |
Total assets | $144,760,876 | $154,303,495 | $186,563,486 | $202,134,184 |
Average funded account balance | $718 | $738 | $782 | $794 |
Withdrawals
Participants may make withdrawals from their accounts as well.
Measure | As of Oct. 31, 2021 | As of Nov. 30, 2021 | As of Dec. 31, 2021 | As of Jan. 31, 2022 |
Withdrawals | $15,665,723 | $18,105,870 | $20,493,838 | $23,901,548 |
Accounts with a partial withdrawal | 1,702 | 1,995 | 2,237 | 2,554 |
Accounts with a full withdrawal | 27,000 | 28,973 | 30,686 | 33,316 |
Opt-Outs
Participants may opt out of CalSavers. The percentage of participants opting out has held at close to 30% for a number of months.
As of Oct. 31, 2021 | As of Nov. 30, 2021 | As of Dec. 31, 2021 | As of Jan. 31, 2022 |
29.6% | 29.79% | 29.74% | 29.88% |
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