Calsavers and Unions - Spidell

Calsavers and Unions

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Message Board Calsavers and Unions

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    • #309665
      Phillip Sexton

      We have a client that has union employees and non-union employees.  The union employees have a pension through the union retirement plan.  For the non-union employees, there is a SEP plan in place (employer contribution only plan), however the company has not been contributing to it.  My questions are

      1. Would the union employees count towards the employee thresholds for requiring employers to register?  For example, if they had 3 non-union employees and 20 union employees, would they be considered exempt because union employees are under a qualified plan? And would the non-union employees, who are not under a qualified plan, be exempt since they are under the 5 employee threshold?
      2. Does the fact that the company has a SEP plan in place for non-union employees make them exempt?  Does the company need to be contributing to it to be exempt?
      3. Does a retirement plan need to be offered to all employees for it to count towards exemption?

      I called CalSavers and posed these questions to them but they just referred me to the FAQs on their website.  She said the union employees would not count towards the threshold since they already have a qualified retirement plan in place. Employers just need to have a qualified retirement plan in place to be exempt but neither employer or employee need to contribute.  The qualified plan does not need to be offered to all employees for them to qualify for exemption (it just needs to be offered to some).  She sounded a little uncertain on her answers and kept referring me back to the FAQs on website.  I’m not seeing how the FAQs really clarify this.  Thoughts from you would be appreciated.


    • #310143
      Phillip Sexton

      Just wondering if there was any follow-up to this post?  Thank you!

    • #310184
      Lynn Freer

      We are following up with  CalSavers but not sure how much we’ll get. We believe you should register and include union employees. Then check the box that you have a plan. What I’m not sure of is whether you must contribute to the plan.

    • #317107
      Phillip Sexton

      Hi there,

      Just checking to see you had heard anything more from CalSavers regarding the above, particularly if the Company is required to contribute to the SEP plan for it to be exempt.


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