California Code of Regulations › Title 10 - Investment › Chapter 15 - Calsavers Retirement Savings Board › Section 10005 - Default Program Options and Alternative Elections for Contributions, Automatic Escalation, and Investment Options for Participants

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(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]