California has launched its CalSavers program, which the self-employed and those working for businesses that don’t offer retirement plans can use to accumulate savings for retirement.
Currently operating as a pilot with volunteer participating companies, CalSavers allows employees to contribute to a state-run retirement plan if their employer signs up for the program. The default contribution rate is 5 percent of income, but participants can change the rate up or down, or even opt out. Enrollment would be automatic.
The state aims to fully launch the program for all businesses by June 2019.