After its first six months, CalSavers, the nation's largest state-sponsored retirement program, had 628 registered employers and nearly 3,800 funded accounts.
The 628 registered employers as of Dec. 31 is up from 230 at the end of September, according to a participation report released by California Secure Choice Retirement Investment Board, which oversees CalSavers and is headed by California Treasurer Fiona Ma.
Of note, 142 employers have started payroll deductions within the program, which had $1.42 million in total assets as of Dec. 31, compared to $734,000 at the end of September.
By the end of 2019, there were 4,033 accounts that had been created but to which no contributions had been made, according to the report. Moreover, 258 employees had left the program and the effective opt-out rate was 30.7%.
The average funded account balance was $378 and the average monthly contribution was $118, as of Dec. 31, the report noted.
"We expect to see major growth in the number of savers in 2020, largely driven by the first employer compliance deadline on June 30," CalSavers Executive Director Katie Selenski said in an email. "We'll be making new investments in advertising and marketing to support our ongoing outreach efforts. We're also eager to see how many employers choose to go with private plans to satisfy the requirement. We'll consider that part of our success since our mission is to increase access and participation broadly."
The CalSavers program was officially launched July 1 after a six-month pilot program. It is required for all California employers with five or more employees that do not already have a retirement plan. Employers with more than 100 employees have until June 30, 2020, to register; those with 50 to 100 workers have until 2021; and those with five to 50 have until 2022.