Cal. Code Regs. tit. 10 § 10000

Current through Register 2024 Notice Reg. No. 45, November 8, 2024

Section 10000 - Definitions

The following definitions shall apply wherever the terms are used throughout this Chapter:

(a) "Account" means a Participant's Individual Retirement Account ("IRA") held within the Program.

(b) "Administrator" means the third-party administrator that operates the Program.

(c) "Automatic Escalation" means an automatic annual increase in a Participating Employee's Contributions as set forth in Section 10005.

(d) "Beneficiary" means the individual(s) or entity(ies) entitled to receive the proceeds of a Participating Employee's or Participating Individual's Account upon their death.

(e) "Board" means the CalSavers Retirement Savings Board.

(f) "Client Employer" means an Employer that is involved in a Multi-Party Employment Relationship due to obtaining the services of a third-party entity.

(g) "Compensation" has the same meaning as defined in Title 26 Code of Federal Regulations Section 1.415(c)-2(d)(4) (April 5, 2007), which is incorporated herein by reference. In the case of a sole proprietor, a partner in a partnership, a member of a limited liability company treated as a sole proprietor or partner, or another self-employed individual, Compensation means such individual's Earned Income.

(h) "Contribution" means any monies contributed to an Account.

(i) "Contribution Rate" means the percentage of a Participating Employee's Compensation to be withheld and contributed to their Account via payroll deduction under the Program.

(j) "Earned Income" means an individual's net earnings from self-employment from the Participating Employer as determined under Section 401(c)(2)(A) of Title 26 of the United States Code.

(k) "Electronic Fund Transfer" has the same meaning as the term established under Section 1693a(7) of Title 15 of the United States Code.

(l) "Eligible Employee" means any Employee of an Eligible Employer who is at least eighteen years of age.

(m) "Eligible Employer" means an Employer that (i) has one or more Employees, as determined under the methodology described in Section 10001(a), at least one of whom is an Eligible Employee; (ii) does not maintain or contribute to a Tax-Qualified Retirement Plan; and (iii) is not the federal government, the state, any county, any municipal corporation, or any of the state's units or instrumentalities.

(n) "Employee" means any individual who has the status of an employee under Unemployment Insurance Code Sections 621, 621.5, 622, or 623 and who receives a W-2 with California wages. In the case of an Eligible Employer that is a sole proprietorship, partnership, or a limited liability company treated as a sole proprietorship or partnership for federal income tax reporting purposes, Employee shall also mean a sole proprietor, partner, or member of a limited liability company treated as a sole proprietor or partner for federal tax purposes.

(o) "Employee Information Packet" means the packet of information provided by the Program that includes the Opt-Out Form, instructions on how to opt out of the Program, and other information required under Government Code Section 100014.

(p) "Employer" means a sole proprietor, partnership, limited liability company, Subchapter C or Subchapter S corporation, trust, or other entity, whether for profit or not for profit, that is an employer under California Unemployment Insurance Code Division 1, Part 1.

(q) "Exempt Employer" means an Employer that (i) has zero Employees, as determined under the methodology described in Section 10001(a), has one or more Employees, but does not employ any Eligible Employees, or who does not employ any individuals other than the owners of the business; (ii) maintains or contributes to a Tax-Qualified Retirement Plan; or (iii) is the federal government, the state, any county, any municipal corporation, or any of the state's units or instrumentalities.

(r) "IRA" means an individual retirement account or individual retirement annuity under Section 408(a), 408(b), or 408A of Title 26 of the United States Code.

(s) "Multi-Party Employment Relationship" means a relationship in which an Employer enters into a service contract with a third-party entity(ies) for services including, but not limited to, payroll, staffing (both temporary and non-temporary), human resources, and Employer compliance with laws and regulations.

(t) "Noncompliance" means the failure of an Eligible Employer to allow an Eligible Employee to participate in the program.

(u) "Opt-Out Form" means the form through which Eligible Employees may note their decision to opt out of participation in the Program.

(v) "Participant" means any person who is or was a Participating Employee, Participating Individual, or Beneficiary.

(w) "Participating Employee" means any person who is an Eligible Employee, is enrolled in the Program, maintains a Program IRA, and is not a Participating Individual.

(x) "Participating Employer" means an Eligible Employer that registered with the Program to provide its Eligible Employees access to the Program.

(y) "Participating Individual" means any person who enrolled in the Program independent of an employment relationship with an Eligible Employer, as further defined in Section 10006; maintains an Account; and is not a Participating Employee.

(z) "Program" means the CalSavers Retirement Savings Program offered by the CalSavers Retirement Savings Trust.

(aa) "Tax-Qualified Retirement Plan" means a retirement plan that qualifies for favorable federal income tax treatment under Sections 401(a), 401(k), 403(a), 403(b), 408(k), or 408(p) of Title 26 of the United States Code. An employer-provided payroll deduction IRA program that does not provide for automatic enrollment is not a Tax-Qualified Retirement Plan.

Cal. Code Regs. Tit. 10, § 10000

Note: Authority cited: Sections 100010 and 100048, Government Code. Reference: Sections 100000, 100012, 100014, 100032 and 100033, Government Code.

Note: Authority cited: Sections 100010 and 100048, Government Code. Reference: Sections 100000, 100012, 100014 and 100032, Government Code.

1. New chapter 15 (sections 10000-10007) and section filed 11-19-2018 as an emergency; operative 11/19/2018 (Register 2018, No. 47). A Certificate of Compliance must be transmitted to OAL by 5-20-2019 or emergency language will be repealed by operation of law on the following day.
2. New chapter 15 (10000-10007) and section refiled 5-6-2019 as an emergency; operative 5/21/2019 (Register 2019, No. 19). A Certificate of Compliance must be transmitted to OAL by 8-19-2019 or emergency language will be repealed by operation of law on the following day.
3. New chapter 15 (sections 10000-10007) and section refiled 8-12-2019 as an emergency; operative 8/20/2019 (Register 2019, No. 33). A Certificate of Compliance must be transmitted to OAL by 11-18-2019 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 8-12-2019 order, including amendment of section, transmitted to OAL 9-23-2019 and filed 10-31-2019; amendments operative 10/31/2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 44).
5. Change without regulatory effect amending chapter heading and subsections (e) and (y) filed 8-17-2020 pursuant to section 100, title 1, California Code of Regulations (Register 2020, No. 34).
6. Amendment of subsection (f), repealer and new subsection (s), amendment of subsection (z) and repealer of subsection (y) filed 8-31-2020 as an emergency; operative 8/31/2020 (Register 2020, No. 36). A Certificate of Compliance must be transmitted to OAL by 3-1-2021 or emergency language will be repealed by operation of law on the following day.
7. Emergency filed 8-31-2020 extended 60 days pursuant to Executive Order N-40-20 and an additional 60 days pursuant to Executive Order N-66-20 (Register 2020, No. 39). A Certificate of Compliance must be transmitted to OAL by 6-29-2021 or emergency language will be repealed by operation of law on the following day.
8. Amendment of subsection (z) filed 1-25-2021 as an emergency; operative 1/25/2021. Pursuant to Health and Safety Code section 1363.04(f), this action is a deemed emergency and exempt from OAL review. Expiration date of emergency action extended 60 days (Executive Order N-40-20) plus an additional 60 days (Executive Order N-71-20) (Register 2021, No. 5). A Certificate of Compliance must be transmitted to OAL by 11-23-2021 or emergency language will be repealed by operation of law on the following day.
9. Amendment of subsection (f), repealer and new subsection (s), amendment of subsection (z) and repealer of subsection (y) - "Tri-Party Employment" refiled 6-28-2021 as an emergency; operative 6/30/2021. Emergency expiration extended 60 days (Executive Order N-40-20) plus an additional 60 days (Executive Order N-71-20) (Register 2021, No. 27). A Certificate of Compliance must be transmitted to OAL by 1-28-2022 or emergency language will be repealed by operation of law on the following day.
10. Amendment of subsection (z) refiled 11-17-2021 as an emergency; operative 11/24/2021. Pursuant to Health and Safety Code section 1363.04(f), this action is a deemed emergency and exempt from OAL review (Register 2021, No. 47). A Certificate of Compliance must be transmitted to OAL by 2-22-2022 or emergency language will be repealed by operation of law on the following day.
11. Certificate of Compliance as to 11-17-2021 order transmitted to OAL 12-2-2021 and filed 1/13/2022 (Register 2022, No. 2).
12. Amendment of subsection (q) filed 3-18-2022 as an emergency; operative 3/18/2022 (Register 2022, No. 11). A Certificate of Compliance must be transmitted to OAL by 9-14-2022 or emergency language will be repealed by operation of law on the following day.
13. Amendment of subsection (q) refiled 9-7-2022 as an emergency; operative 9/15/2022 (Register 2022, No. 36). A Certificate of Compliance must be transmitted to OAL by 12-14-2022 or emergency language will be repealed by operation of law on the following day.
14. Amendment of subsection (q) refiled 11-30-2022 as an emergency; operative 12/15/2022 (Register 2022, No. 48). A Certificate of Compliance must be transmitted to OAL by 3-15-2023 or emergency language will be repealed by operation of law on the following day.
15. Amendment of subsections (m) and (q) filed 12-21-2022 as an emergency; operative 1/1/2023 (Register 2022, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-30-2023 or emergency language will be repealed by operation of law on the following day.
16. Certificate of Compliance as to 11-30-2022 order transmitted to OAL 1-31-2023 and filed 3/15/2023 (Register 2023, No. 11).
17. Amendment of subsections (m) and (q) refiled 6-19-2023 as an emergency; operative 6/30/2023 pursuant to Government Code section 11346.1(d) (Register 2023, No. 25). A Certificate of Compliance must be transmitted to OAL by 9-28-2023 or emergency language will be repealed by operation of law on the following day.
18. Certificate of Compliance as to 6-19-2023 order transmitted to OAL 6-23-2023 and filed 8/7/2023 (Register 2023, No. 32).
19. New subsection (t), subsection relettering and amendment of NOTE filed 12-26-2023 as an emergency; operative 12/26/2023 (Register 2023, No. 52). A Certificate of Compliance must be transmitted to OAL by 6-24-2024 or emergency language will be repealed by operation of law on the following day.
20. New subsection (t), subsection relettering and amendment of NOTE refiled 6-20-2024 as an emergency; operative 6/20/2024 (Register 2024, No. 34). A Certificate of Compliance must be transmitted to OAL by 9-18-2024 or emergency language will be repealed by operation of law on the following day.
21. Certificate of Compliance as to 6-20-2024 order transmitted to OAL 8-2-2024 and filed 8-21-2024 (Register 2024, No. 34).