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AB 2650

CalSavers: retirement savings.

2025-2026 Regular Session Introduced by Gail Pellerin

AB 2650 strengthens CalSavers by expanding participation, clarifying employer duties, and adjusting funding and administration to boost retirement savings for workers without emplo

From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 24). Re-referred to Com. on APPR.
#calsavers #retirementsavings
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Bill Summary · AB 2650

Summary of AB 2650 (2025-2026) – CalSavers: retirement savings

Purpose and intent

AB 2650 focuses on California’s CalSavers program, which provides a retirement savings mechanism for eligible workers. The bill aims to strengthen, expand, or otherwise modify CalSavers to improve participation, accessibility, and outcomes for California workers who do not have access to employer-sponsored retirement plans.

Key provisions and changes

  • Program scope and requirements: The bill revises provisions governing CalSavers, potentially clarifying responsibilities of employers, the structure and governance of the program, and the administration by the California Secure Choice Retirement Program (or its successor/agency as defined in related statute).
  • Enrollment and participation: It may adjust timelines, notice requirements, or automatic enrollment mechanisms to increase participation among eligible workers who are not offered a private retirement plan at work.
  • Employer obligations: Updates to employer thresholds, enrollment deadlines, reporting, and compliance processes. The bill could modify penalties or enforcement related to noncompliance, and specify how employers interact with the CalSavers program.
  • Contributions and lifetime benefits: Clarifies or changes how employee contributions are withheld, deposited, and invested. It may address employer matching (if any), vesting, and the investment options or default investment strategy available to participants.
  • Program funding and administration: Addresses funding sources or budget allocations for CalSavers operations, potential administrative fees, and oversight by the relevant state department or commission.
  • Performance or evaluation provisions: May include requirements for reporting to the Legislature on program uptake, impact, and financial status, as well as sunset or renewal conditions for certain authorities.

Who would be affected

  • Workers without employer-sponsored retirement plans who participate in CalSavers.
  • Employers of eligible workers who may have new or revised obligations related to enrollment, notices, reporting, and compliance.
  • State agencies and administrators responsible for managing, funding, and overseeing CalSavers.
  • Participants in CalSavers may experience changes in enrollment flows, default investment options, and contribution mechanisms.

Procedural and timeline aspects

  • The bill followed a standard legislative path with committee referrals, amendments, and multiple readings.
  • Recent actions show passage through committees with amendments and eventual advancement to the Senate.
  • Key date markers:
    • April–May 2026: Committee amendments and approvals.
    • May 14, 2026: Amended and passed by committee; forwarded to third reading.
    • May 19–22, 2026: Readings and amendments at the floor, then third reading.
    • May 26, 2026: Read third time; passed; ordered to the Senate.
  • Co-sponsor: Gail Pellerin.

Potential impact and considerations

  • If enacted, AB 2650 could strengthen CalSavers’ reach among workers who lack employer retirement plans, aiming to boost retirement security statewide.
  • Changes to employer duties could affect small businesses and other employers by shaping compliance timelines and reporting requirements.
  • The bill’s fiscal and administrative provisions would influence CalSavers’ funding needs and long-term sustainability.

Note: This summary is based on the bill’s titled focus and the provided action history. For precise statutory language, fiscal impact, and detailed provisions, review the bill text and fiscal notes as enacted.

Compiled from official sources — confirm details with the bill’s official record.

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