Cal. Code Regs. Tit. 10, § 10005 - Default Program Options and Alternative Elections for Contributions, Automatic Escalation, and Investment Options for Participants

(a) Upon enrollment, a Participating Employee who has not made an alternative election as specified in this Section shall make Contributions to the Program according to the following default elections:

(1) At a Contribution Rate of 5%.

(2) Have Contributions subject to Automatic Escalation whereby the Contribution Rate shall increase by an additional 1% of Compensation on each January 1 following the Participating Employee's enrollment, up to a maximum Contribution Rate of 8%.

(A) Participating Employees who choose an alternative Contribution Rate shall have Contributions subject to Automatic Escalation unless they choose to opt out of Automatic Escalation by notifying the Administrator using one of the methods identified in Section 10004(d).

(B) A Participating Employee who has not participated in the Program for at least six consecutive calendar months during a calendar year shall not have Contributions subject to Automatic Escalation until the January 1 that follows the next calendar year in which the Participating Employee has at least six calendar months of participation.

1.The Administrator shall notify the Participating Employee of the Automatic Escalation increase at least 60 days before January 1 to provide the Participating Employee an opportunity to opt out of Automatic Escalation.

(3) Have Contributions made to a Roth IRA. The Program will establish the IRA on behalf of Participating Employees that have not established an IRA for themselves utilizing the information required by Section 10003(a).

(4) Have Contributions invested in the default investment option.

A Participating Employee who has not made an alternative election shall have all Contributions invested in a capital preservation investment for 30 days. After those 30 days have elapsed, unless the Participating Employee makes an alternative election, the Participating Employee's Contributions shall be invested in a Target Date Fund based on the Participating Employee's age as reported on the Program's records and an assumed retirement at age 65.

The applicable Target Date Fund shall be determined as described in the following table:

Date of Birth	Target Retirement Years	CalSavers Fund Name
12/31/1947 or Earlier	2012 or earlier	CalSavers Target Retirement Fund
1/1/1948 - 12/31/1952	2013 - 2017	CalSavers Target Retirement 2015 Fund
1/1/1953 - 12/31/1957	2018 - 2022	CalSavers Target Retirement 2020 Fund
1/1/1958 - 12/31/1962	2023 - 2027	CalSavers Target Retirement 2025 Fund
1/1/1963 - 12/31/1967	2028 - 2032	CalSavers Target Retirement 2030 Fund
1/1/1968 - 12/31/1972	2033 - 2037	CalSavers Target Retirement 2035 Fund
1/1/1973 - 12/31/1977	2038 - 2042	CalSavers Target Retirement 2040 Fund
1/1/1978 - 12/31/1982	2043 - 2047	CalSavers Target Retirement 2045 Fund
1/1/1983 - 12/31/1987	2048 - 2052	CalSavers Target Retirement 2050 Fund
1/1/1988 - 12/31/1992	2053 - 2057	CalSavers Target Retirement 2055 Fund
1/1/1993 - 12/31/1997	2058 - 2062	CalSavers Target Retirement 2060 Fund
1/1/1998 - 12/31/2002	2063 - 2067	CalSavers Target Retirement 2065 Fund
1/1/2003 - 12/31/2007	2068 - 2072	CalSavers Target Retirement 2070 Fund
1/1/2008 or later	2073 - or later	[Funds to be added later - not a valid Participant age]

(b) Participants may make an alternative election at any time through one of the methods established under Section 10004(d).

(1) A Participating Employee may elect a Contribution Rate other than the default Contribution Rate at any integer between 0% and 100% of Compensation.

(2) A Participating Employee may opt out of Automatic Escalation or elect an alternative Automatic Escalation percentage at any time by notifying the Administrator using one of the methods established in Section 10004(d).

(3) A Participating Employee may elect to make recurring non-payroll Contributions of at least $10 each to their Account. Such recurring non-payroll Contributions may be made as frequently as weekly, once every two weeks, twice monthly, or monthly and must be made through Electronic Fund Transfer.

(4) A Participating Employee may also elect to make non-recurring non-payroll Contributions. Such Contributions must be made through Electronic Fund Transfer or by personal check and must be a minimum of at least $10.

(5) A Participant may elect one or more investment options for any portion of their existing balance or future contributions. Participants may make this alternative election by notifying the Administrator using one of the methods established in Section 10004(d).

(6) Alternative contribution elections (including Contribution Rates, Automatic Escalation and opt out elections) shall be implemented as soon as administratively practicable but no later than the first payroll period following 30 days after notification to the Administrator of the alternative election.

(c) Other Contribution and Investment Election Rules

(1) Participating Employers are prohibited from contributing to a Participating Employee's Account.

(2) An individual who is both a Participating Employer and a Participating Employee may make Contributions to their own Account under the same terms and conditions as other Participating Employees.

(3) Amounts withheld by the Participating Employer shall not exceed the amount of the Participating Employee's Compensation remaining after any payroll deductions required by law to have higher precedence, including a court order.

(4) A Participant may elect to recharacterize all or some of their Contributions to a Traditional IRA by phone (855-650-6918).

Notes

Cal. Code Regs. Tit. 10, § 10005

Note: Authority cited: Sections 100010 and 100048, Government Code. Reference: Sections 100002, 100004, 100008, 100012, 100032 and 100043, Government Code.

1. New section filed 11-19-2018 as an emergency; operative 11/19/2018 (Register 2018, No. 47). A Certificate of Compliance must be transmitted to OAL by 5-20-2019 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 5-6-2019 as an emergency; operative 5/21/2019 (Register 2019, No. 19). A Certificate of Compliance must be transmitted to OAL by 8-19-2019 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 8-12-2019 as an emergency; operative 8/20/2019 (Register 2019, No. 33). A Certificate of Compliance must be transmitted to OAL by 11-18-2019 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 8-12-2019 order, including amendment of section and Note, transmitted to OAL 9-23-2019 and filed 10-31-2019; amendments operative 10/31/2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 44).
5. Amendment of subsections (a)(2)(B), (a)(4) and (c)(4) filed 8-31-2020 as an emergency; operative 8/31/2020 (Register 2020, No. 36). A Certificate of Compliance must be transmitted to OAL by 3-1-2021 or emergency language will be repealed by operation of law on the following day.
6. Emergency filed 8-31-2020 extended 60 days pursuant to Executive Order N-40-20 and an additional 60 days pursuant to Executive Order N-66-20 (Register 2020, No. 39). A Certificate of Compliance must be transmitted to OAL by 6-29-2021 or emergency language will be repealed by operation of law on the following day.
7. Amendment of subsection (a)(4), new subsections (a)(4)(A)-(C), amendment of subsection (b)(3), new subsections (b)(4)-(b)(4)(B) and subsection renumbering filed 1-25-2021 as an emergency; operative 1/25/2021. Pursuant to Health and Safety Code section 1363.04(f), this action is a deemed emergency and exempt from OAL review. Expiration date of emergency action extended 60 days (Executive Order N-40-20) plus an additional 60 days (Executive Order N-71-20) (Register 2021, No. 5). A Certificate of Compliance must be transmitted to OAL by 11-23-2021 or emergency language will be repealed by operation of law on the following day.
8. Amendment of subsections (a)(2)(B), (a)(4) and (c)(4) refiled 6-28-2021 as an emergency; operative 6/30/2021. Emergency expiration extended 60 days (Executive Order N-40-20) plus an additional 60 days (Executive Order N-71-20) (Register 2021, No. 27). A Certificate of Compliance must be transmitted to OAL by 1-28-2022 or emergency language will be repealed by operation of law on the following day.
9. Amendment of subsection (a)(4), new subsections (a)(4)(A)-(C), amendment of subsection (b)(3), new subsections (b)(4)-(b)(4)(B) and subsection renumbering refiled 11-17-2021 as an emergency; operative 11/24/2021. Pursuant to Health and Safety Code section 1363.04(f), this action is a deemed emergency and exempt from OAL review (Register 2021, No. 47). A Certificate of Compliance must be transmitted to OAL by 2-22-2022 or emergency language will be repealed by operation of law on the following day.
10. Certificate of Compliance as to 11-17-2021 order transmitted to OAL 12-2-2021 and filed 1/13/2022 (Register 2022, No. 2).
11. Amendment of subsection (a)(4), repealer of subsections (a)(4)(A)-(C), amendment of subsection (b)(4) and repealer of subsections (b)(4)(A)-(B) filed 12-21-2022 as an emergency; operative 1/1/2023 (Register 2022, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-30-2023 or emergency language will be repealed by operation of law on the following day.