CalSavers, one of the first state-run programs that provides retirement plan coverage for private-sector employees whose employers do not, continues to grow—especially in assets. 
As one of the longest-lived such programs, CalSavers provides a useful snapshot regarding how such plans function and what others may expect.
Employer Registrations
Under the law that established CalSavers, employer registrations took place in waves. Employers with more than 100 employees were to register by Sept. 30, 2020; 51-100 employees, by June 30, 2021; and 5-50 employees, by June 30, 2022. Employers with fewer than five employees are required to register by Dec. 31, 2025.
Slowing pace. The start of registrations, and the gradual expansion of registration requirements, explained the increase in employer registrations—which was steady and sometimes sharp as a deadline approached. But since the last deadline, the increase in registrations has slowed. Figures from the first half of 2023 are illustrative.
In the first quarter of 2024, total employer registrations grew, but by only small amounts—and by amounts that were progressively smaller.
Registrations ongoing. “If employers missed their registration deadline, they should register today to avoid penalties,” said California State Treasurer Fiona Ma in her comments about plans for CalSavers in 2024. “Each year, newly mandated employers who averaged five or more employees the previous year will receive notifications informing them about their mandate status and will be required to register by the end of the calendar year,” she continued.
Ma also gave a reminder: “The deadline for employers with five or more employees has now passed. Employers with an average of one to four employees over the previous calendar year can join today, and must register by December 31, 2025, if they do not already sponsor a retirement program.”
And Ma had a warning: “All employers who were subject to deadlines on or before December 31, 2022, are currently subject to enforcement action if they failed to register or failed to facilitate the Program after registration, and may have received a penalty collection notice from the Franchise Tax Board.” However, she also indicated that justice can be tempered with mercy, noting that employers who comply in a timely manner may have their penalties forgiven.
Participant Accounts
The number of payroll contributing accounts in CalSavers grew gradually throughout the first quarter of 2024, at roughly the same pace.
Funded accounts also grew gradually, and at a steady rate. And there were close to half a million of them by March 31.
Assets
CalSavers’ assets grew steadily in the first quarter of 2024, and rose by almost $100 million from New Year’s Day to April Fools' Day.
This strong growth in assets continues a trend that began in late Fall 2023. CalSavers’ assets fell in September, and held steady in October—but grew sharply in November, a trend that continued in December.
In dollars and cents, in the first quarter of 2024 CalSavers’ assets increased from approximately $766 million to just over $857 million.
Participants’ average balances grew in the first quarter as well, and the growth accelerated as the quarter progressed.
Contributions
Contributions to CalSavers grew consistently throughout the first quarter, and were just over $100 million higher by March 31 than they were at the start of the year. Contributions were just shy of $1 billion by the end of the quarter.
Withdrawals & Opt-Outs
Withdrawals. Withdrawals grew consistently throughout the first quarter of 2024. Each month withdrawals rose by at least $10 million—however, that was only one-third the amount by which contributions grew each month.
The number of accounts from which all money had been withdrawn broke 100,000 in December 2023 and consistently rose slowly through the first quarter. There were 106,689 that were fully drained by Jan. 31; 113,346 were empty by the end of March.
Opt outs. Participants are free to opt out of CalSavers if they wish. The opt-out rate held steady at 36.3% to 36.8% throughout the first quarter.
The Big Picture
“CalSavers is a testament to the power of public-private partnerships in addressing pressing societal issues, such as the retirement savings crisis,” said Treasurer Fiona Ma. “By joining CalSavers, employers not only contribute to the financial security of their employees, but also strengthen the economic resilience of our state,” she continued.
Finding out More
The January CalSavers figures are here: https://www.treasurer.ca.gov/calsavers/reports/participation/january_2024.pdf
The February CalSavers figures are here: https://www.treasurer.ca.gov/calsavers/reports/participation/february_2024.pdf
The March CalSavers figures are here: https://www.treasurer.ca.gov/calsavers/reports/participation/march_2024.pdf
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