Bill > AB2607

This bill makes several changes to the CalSavers Retirement Savings Program, a state-administered retirement savings program for private employees. Key provisions include expanding the definition of "eligible employer" to include household employers, who hire individuals to work in their homes and issue W-2 tax forms. The bill also removes the program's ability to invest in myRAs (a federal retirement savings program) and instead requires the program to establish Individual Retirement Accounts (IRAs) for participants eligible for federal or state retirement benefits, and to create payroll deposit emergency savings accounts to help preserve retirement investments, with participants being notified at least 30 days before these accounts are created. Additionally, the bill authorizes the CalSavers Retirement Savings Board to explore multi-state or regional agreements for program administration, removes the requirement for a "Retirement Investments Clearinghouse" on the board's website in favor of a vendor contracting process, and delays the deadline for eligible employers to offer a payroll deposit retirement savings arrangement to December 31, 2027. Finally, the bill increases penalties for employers who fail to comply with the program's requirements, imposing an additional penalty of $500 per eligible employee for continued noncompliance, with these penalties not being assessed more than once every 180 days.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB2607