CalSavers
State of California IRA program
Year enacted |
2016; amended 2017, 2018, 2019, and 2020 |
Status |
Statewide implementation is in three phases:
|
Employers affected |
Mandatory for employers with five or more employees that don’t provide their own qualified plan |
Type of account |
Roth IRA (default) and traditional IRA (optional) |
Automatic enrollment |
Yes |
Auto-escalation |
Yes (1% increments, up to 8%) |
Default contribution rate |
5% |
Employer contributions |
Not permitted |
Investment options |
Target-date funds (TDFs), a capital preservation fund, a bond fund, a global equity fund, and an ESG-oriented fund
Default—Contributions are invested in the capital preservation fund for 30 days and then moved to the age-appropriate TDF, if no other investment option is selected. |
Fees |
None for employers. Total annualized asset-based fee is 0.825% to 0.950%. |
Website |
Sources: Most of the Information is from “State-Facilitated Retirement Savings Programs: A Snapshot of Plan Design Features,” Georgetown University Center for Retirement Initiatives, 10/31/21 and the program's website. It is subject to change without notice. Please contact the state to learn more.
Learn more about the opportunity with state-facilitated retirement plans
John Hancock Investment Management Distributors LLC is the principal underwriter and wholesale distribution broker dealer for the John Hancock mutual funds. Member FINRA, SIPC.
John Hancock Retirement Plan Services LLC offers administrative or recordkeeping services to sponsors and administrators of retirement plans. John Hancock Trust Company LLC provides trust and custodial services to such plans. Group annuity contracts and recordkeeping agreements are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, New York. Product features and availability may differ by state. Securities offered through John Hancock Distributors LLC. Member FINRA, SIPC.
MGR0518222192071 MF2232645 6/22