Effective June 1, 2023
Take Action: Enroll in Electronic Document Delivery to Avoid Additional Fee
The CalSavers Retirement Savings Board recently approved changes to the Program’s account fee structure. The updated fee structure is designed to make it more cost-effective for savers to invest with CalSavers for the long term while also covering program expenses including, servicing your account, providing customer support, and operating expenses associated with managing the underlying investment funds in which your funds are invested.
While the new fee structure is effective June 1, each fee is assessed differently as described below.
Administrative Fees
Currently, the fees for CalSavers are Annualized Asset-Based Fees of 0.825%-0.99% that are assessed on your fund account balance and varies depending on your investment choices. As of June 1, the fees will be a combination of a Fixed Account Fee and Annualized Asset-Based Fees. Additionally, effective July 1, 2023, the Total Annualized Asset-Based Fees will be reduced to a range of 0.325% to 0.49%1.
| Fee | Description | Amount | When Assessed | Effective Date |
|---|---|---|---|---|
| Fixed Account Fee | Fee for account maintenance and administration. | $4.50 per quarter ($18.00 annually) | Assessed on the last day of each quarter: March 31, June 30, September 30, and December 31 annually. It will not be assessed until at least 90 days after the initial contribution and will not be assessed for the quarter in which the first contribution is made. |
June 1, 2023 |
| Total Annualized | Fee for the annual costs and expenses for account maintenance and administration including costs associated with each Investment Option. Refer to the Program Disclosure Booklet for more information. | Ranging from 0.325% to 0.49% of an account balance, depending on the investment choice(s).2 | Fees accrue daily and are factored into the price of an investment option. | July 1, 2023 |
1 The Total Annualized Asset-Based Fee includes the Underlying Fund Fee, the State Fee, and the Program Administration Fee. On July 1, the Program Administration Fee will be reduced from 0.75% to 0.25% resulting in a reduction of the range of Total Annualized Asset-Based Fees from 0.825%-0.99% to 0.325% to 0.49%.
2 This means you will pay between 33 cents and 49 cents per year for every $100 in an account, depending on your investment choice.
Here’s how the Fixed Account Fee will be assessed in 2023:
The first Fixed Account Fee is not assessed until at least 90 days after the initial contribution and will not be assessed for the quarter in which the first contribution is made.
For savers with an account balance as of March 31, 2023 (end of the first quarter of 2023):
The first Fixed Account Fee will be assessed on the last day of the second quarter, June 30, 2023.
For savers who do not have an account balance as of March 31, 2023:
The initial Fixed Account Fee will not be assessed until at least 90 days after your initial contribution. For example, if an account is initially funded between April 1-June 30 (the second quarter of the year), the first Fixed Account Fee will be at the end of the third quarter, September 30, 2023.
| The first CalSavers contribution occurs between: | The date that the Fixed Account Fee will be assessed is: |
|---|---|
| January 1-March 31 | June 30 |
| April 1-June 30 | September 30 |
| July 1-September 30 | December 31 |
| October 1-December 31 | March 31 |
A saver that requests a full withdrawal after June 1, 2023, will be assessed the Fixed Account Fee for the second quarter if their account has been funded for at least 90 days, unless the withdrawal is made during the same quarter when you made your first contribution.
Activity-Based Fees
CalSavers is adopting activity-based fees for those who use paper delivery for two activities: receiving paper documents and requesting a paper check for a distribution. Savers can avoid these two fees by opting into electronic delivery of statements or electronic transfer of funds for withdrawals.
| Fee | Description | Amount | When Assessed | Effective Date |
|---|---|---|---|---|
| Paper Delivery Fee | Fee for paper delivery of account statements, disclosure materials, transaction & profile confirmations, and other communications (excluding IRS Tax forms). | $1.25 per quarter. ($5.00 annually) |
The Paper Delivery Fee is assessed at the end of each quarter. It will not be assessed until at least 90 days after the initial contribution and will not be assessed for the quarter in which the first contribution is made. This fee can be avoided by opting into electronic delivery. |
June 1, 2023 |
| Paper Check Fee |
Fee for the delivery of funds by paper check. If there are insufficient funds to cover this fee, the saver will be directed to set up electronic bank transfer (ACH withdrawal) to a bank account. |
$5.00 per check. | Upon request of a paper check. | June 1, 2023 |
How fees are assessed.
Steps you can take today.
Go to calsavers.com/myaccount and either enter the access code CalSavers sent to you when your employer added you to the program or click on “Can’t locate your access code?” and follow the instructions.
When you access your account, you can review and make changes to your personal information, investment selection.
Questions?
If you have any questions about this program change or your account, please email us at clientservices@calsavers.com or call us at 855-650-6918 Monday through Friday, 8:00 am – 8:00 pm PT. Multilingual support is available. Please have your CalSavers account number ready to share with the Client Services representative for faster service.
The Asset-Based Fee calculation will be applied against the account balance for each investment choice in your account. Refer to the Program Description for information.
The Paper Delivery Fee is assessed at the end of each quarter. It will not be assessed until at least 90 days after the initial contribution and will not be assessed for the quarter in which the first contribution is made. You can avoid this fee by changing your delivery preference to electronic delivery in the Saver portal.
The Paper Check Fee will be assessed when a paper check is requested.
Yes. Depending on circumstances, more than one fee can be assessed. For example, if you initiate a full withdrawal of money from your account and receive a paper check, the following fees will be assessed: a Fixed Account Fee for that quarter ($4.50) and the Paper Check Fee ($5.00). These fees will be deducted from the account first before a distribution is made.
Full withdrawals made within 90 days of the first contribution (or within the same quarter as the first contribution) will not be subject to the Fixed Account Fee or Paper Delivery Fee.
Account balance greater than $15.00: The Fixed Account Fee and Paper Delivery Fee (if applicable) will be assessed before funds are distributed.
Account balance $15.00 or less: The Fixed Account Fee and Paper Delivery Fee (if applicable) will be waived.
No. IRS rules prohibit our team from updating your delivery preference in your account. You must log into your web account and change your delivery preference to avoid the Paper Delivery Fee. If you have not previously accessed your account, go to calsavers.com/myaccount and enter the access code CalSavers sent to you when your employer added you to the program or click on Can’t locate your access code? and follow the instructions. When you enter your account, you can review and make changes to your personal information, investment selection and savings rate. If you need guidance, Client Services can walk you through the steps online.
We’re sorry to hear that you considering opting out of CalSavers. Before you move to opting out, we encourage to read about how the program works or attend a webinar to learn why saving for retirement is important and how CalSavers can help you save for the future.
If you still intend to opt out, the easiest way to opt out is either by calling our automated phone system at (855) 650 – 6918, online by logging into your account or you can also choose to download, complete, and mail-in a form.
Keep in mind, the Fixed Account Fee and the Paper Delivery Fee are not assessed until at least 90 days after the initial contribution and will not be assessed for the quarter in which the first contribution is made. The Paper Check Fee may be assessed for requesting a paper check.
Contact Client Services at 855-650-6918 Monday through Friday, 8:00 am – 8:00 pm PT. Multilingual support is available. Please have your CalSavers account number ready to share with the Client Services representative for faster service.