California Code of Regulations › Title 10 - Investment › Chapter 15 - Calsavers Retirement Savings Board › Section 10000 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The following definitions shall apply wherever the terms are
				used throughout this Chapter:
(a)
			 "Account" means a Participant's Individual Retirement Account ("IRA") held
			 within the Program.
(b)
			 "Administrator" means the third-party administrator that operates the
			 Program.
(c) "Automatic Escalation"
			 means an automatic annual increase in a Participating Employee's Contributions
			 as set forth in Section
			 10005.
(d) "Beneficiary" means the individual(s) or
			 entity(ies) entitled to receive the proceeds of a Participating Employee's or
			 Participating Individual's Account upon their death.
(e) "Board" means the CalSavers Retirement
			 Savings Board.
(f) "Client
			 Employer" means an Employer that is involved in a Multi-Party Employment
			 Relationship due to obtaining the services of a third-party entity.
(g) "Compensation" has the same meaning as
			 defined in Title 26 Code of Federal Regulations Section 1.415(c)-2(d)(4) (April
			 5, 2007), which is incorporated herein by reference. In the case of a sole
			 proprietor, a partner in a partnership, a member of a limited liability company
			 treated as a sole proprietor or partner, or another self-employed individual,
			 Compensation means such individual's Earned Income.
(h) "Contribution" means any monies
			 contributed to an Account.
(i)
			 "Contribution Rate" means the percentage of a Participating Employee's
			 Compensation to be withheld and contributed to their Account via payroll
			 deduction under the Program.
(j)
			 "Earned Income" means an individual's net earnings from self-employment from
			 the Participating Employer as determined under Section 401(c)(2)(A) of Title 26
			 of the United States Code.
(k)
			 "Electronic Fund Transfer" has the same meaning as the term established under
			 Section
			 1693a(7) of Title 15 of the United States
			 Code.
(l) "Eligible
			 Employee" means any Employee of an Eligible Employer who is at least eighteen
			 years of age.
(m) "Eligible
			 Employer" means an Employer that (i) has one or more Employees, as determined
			 under the methodology described in Section
			 10001(a), at
			 least one of whom is an Eligible Employee; (ii) does not maintain or contribute
			 to a Tax-Qualified Retirement Plan; and (iii) is not the federal government,
			 the state, any county, any municipal corporation, or any of the state's units
			 or instrumentalities.
(n)
			 "Employee" means any individual who has the status of an employee under
			 Unemployment Insurance Code Sections
			 621,
			 621.5,
			 622,
			 or
			 623
			 and who receives a W-2 with California wages. In the case of an Eligible
			 Employer that is a sole proprietorship, partnership, or a limited liability
			 company treated as a sole proprietorship or partnership for federal income tax
			 reporting purposes, Employee shall also mean a sole proprietor, partner, or
			 member of a limited liability company treated as a sole proprietor or partner
			 for federal tax purposes.
(o)
			 "Employee Information Packet" means the packet of information provided by the
			 Program that includes the Opt-Out Form, instructions on how to opt out of the
			 Program, and other information required under Government Code Section
			 100014.
(p) "Employer" means a sole proprietor,
			 partnership, limited liability company, Subchapter C or Subchapter S
			 corporation, trust, or other entity, whether for profit or not for profit, that
			 is an employer under California Unemployment Insurance Code Division 1, Part
			 1.
(q) "Exempt Employer" means an
			 Employer that (i) has zero Employees, as determined under the methodology
			 described in Section
			 10001(a), has one
			 or more Employees, but does not employ any Eligible Employees, or who does not
			 employ any individuals other than the owners of the business; (ii) maintains or
			 contributes to a Tax-Qualified Retirement Plan; or (iii) is the federal
			 government, the state, any county, any municipal corporation, or any of the
			 state's units or instrumentalities.
(r) "IRA" means an individual retirement
			 account or individual retirement annuity under Section 408(a), 408(b), or 408A
			 of Title 26 of the United States Code.
(s) "Multi-Party Employment Relationship"
			 means a relationship in which an Employer enters into a service contract with a
			 third-party entity(ies) for services including, but not limited to, payroll,
			 staffing (both temporary and non-temporary), human resources, and Employer
			 compliance with laws and regulations.
(t) "Noncompliance" means the failure of an
			 Eligible Employer to allow an Eligible Employee to participate in the
			 program.
(u) "Opt-Out Form" means
			 the form through which Eligible Employees may note their decision to opt out of
			 participation in the Program.
(v)
			 "Participant" means any person who is or was a Participating Employee,
			 Participating Individual, or Beneficiary.
(w) "Participating Employee" means any person
			 who is an Eligible Employee, is enrolled in the Program, maintains a Program
			 IRA, and is not a Participating Individual.
(x) "Participating Employer" means an
			 Eligible Employer that registered with the Program to provide its Eligible
			 Employees access to the Program.
(y) "Participating Individual" means any
			 person who enrolled in the Program independent of an employment relationship
			 with an Eligible Employer, as further defined in Section
			 10006; maintains an Account; and
			 is not a Participating Employee.
(z) "Program" means the CalSavers Retirement
			 Savings Program offered by the CalSavers Retirement Savings Trust.
(aa) "Tax-Qualified Retirement Plan" means a
			 retirement plan that qualifies for favorable federal income tax treatment under
			 Sections 401(a), 401(k), 403(a), 403(b), 408(k), or 408(p) of Title 26 of the
			 United States Code. An employer-provided payroll deduction IRA program that
			 does not provide for automatic enrollment is not a Tax-Qualified Retirement
			 Plan.
Note: Authority cited: Sections 100010 and 100048, Government
				  Code. Reference: Sections 100000, 100012, 100014, 100032 and 100033, Government
				  Code.
Note: Authority cited: Sections
				  100010 and
				  100048,
				  Government Code. Reference: Sections
				  100000,
				  100012,
				  100014 and
				  100032,
				  Government Code.