(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.