AB 2650: CalSavers: retirement savings.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law, the CalSavers Retirement Savings Trust Act, administered by the CalSavers Retirement Savings Board (board), establishes the CalSavers Retirement Savings Program (program) and the CalSavers Retirement Savings Trust (trust). Under existing law, the trust consists of a program fund and an administrative fund with trust moneys that are continuously appropriated and administered by the CalSavers Retirement Savings Board for the purpose of promoting greater retirement savings for California private employees. Existing law requires eligible employers to offer a payroll deposit retirement savings arrangement so that eligible employees may contribute a portion of their salary or wages to a retirement savings program account in the program, as specified.

Existing law defines “eligible employer” as a person or entity engaged in a business, industry, profession, trade, or other enterprise in the state, whether for profit or not for profit, excluding, among others, specified federal, state, and local governmental entities, with at least one eligible employee and that satisfies certain requirements to establish or participate in a payroll deposit retirement savings arrangement.

This bill would enact the Savings Access and Vested Empowerment (SAVE) for All Workers Act, which would recast those provisions to expand that definition of “eligible employer” to include household employers, defined as those who have hired someone to work in or around their home for the benefit of their personal household and who provide the employee a W-2 federal tax form. By expanding eligibility under these provisions, the bill would remove a restriction limiting expenditure of funds and authorize the expenditure of continuously appropriated moneys for a new purpose, thereby making an appropriation.

Existing law requires the board, subject to its authority and fiduciary duty, to design and implement the program. Existing law authorizes the board to provide for investment in myRAs. Existing law requires the program to include, as determined by the board, one or more payroll deduction IRA arrangements. Existing law provides the board with the power and authority to, among other things, make and enter into contracts necessary for the administration of the trust and to disseminate information concerning tax credits available to small business owners for allowing their employees to participate in the program and the federal Retirement Savings Contribution Credit (Saver’s Credit).

This bill would eliminate the authority of the board to invest in myRAs and would make related conforming changes. The bill would require the program, with board approval, to establish an IRA on behalf of participants who are eligible to receive federal or state retirement benefits, as specified, and notify participants at least 30 days prior to the creation of the accounts.

This bill would additionally authorize the board to assess the feasibility of multi-state or regional agreements to administer the program and to disseminate information concerning tax credits available to small business owners for allowing their employees to participate in the successor to the Saver’s Credit, known as the Saver’s Match.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. August 13, 2026In committee: Held under submission.
2. August 3, 2026In committee: Referred to APPR. suspense file.
3. June 24, 2026From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on APPR.
4. June 17, 2026From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 4. Noes 1.) (June 17). Re-referred to Com. on REV. & TAX.
5. June 10, 2026Referred to Coms. on L., P.E. & R. and REV. & TAX.
6. May 27, 2026In Senate. Read first time. To Com. on RLS. for assignment.
7. May 26, 2026Read third time. Passed. Ordered to the Senate. (Ayes 60. Noes 14. Page 5391.)
8. May 22, 2026Read third time and amended. Ordered to third reading. (Page 5275.)
9. May 19, 2026Read second time. Ordered to third reading.
10. May 18, 2026Read second time and amended. Ordered returned to second reading.
11. May 14, 2026From committee: Amend, and do pass as amended. (Ayes 11. Noes 3.) (May 14).
12. May 6, 2026In committee: Set, first hearing. Referred to APPR. suspense file.