Small Business Retirement Programs: A Report From California
Rhett Buttle • November 6, 2020
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The Covid-19 pandemic continues to impact small businesses across the country as they struggle to stay afloat financially. For many, the concern for owners and employees is making it to next week, and they are not even thinking about next year, much less planning for their retirement. However, the pandemic has shown the importance of saving for the future, and thankfully more states are creating programs that provide automated retirement savings options for small businesses and their employees.
The CalSavers program was established in law in 2016 and is a state-facilitated program for California workers whose employers do not offer a workplace retirement plan and self-employed individuals. Employers that do not offer retirement plans and have at least five employees will register for CalSavers and can facilitate their employees’ access to the program with minimal paperwork and no fiduciary liability. The program is voluntary for employees and uses an opt-out enrollment process based on insights from behavioral science. A portion of the employee’s paycheck is then automatically deducted into their own Individual Retirement Account (IRA), which is managed by professional financial services firms overseen by the CalSavers Retirement Savings Board, chaired by the State Treasurer. The program is always voluntary for employees, who can opt out at any time.
I recently had the opportunity to speak with Fiona Ma, California State Treasurer, and Katie Selenski, Executive Director of the CalSavers Retirement Savings Board, about the program and the Covid-19 pandemic’s impact on enrollment. I am very appreciative of the time they took to speak with me; below is a summary of our conversation.
Rhett Buttle: How has Covid-19 challenged or affirmed how you think about the financial security of small businesses and their employees in your state?
Katie Selenski: The pandemic has made it even more clear that many small businesses and their employees are operating at the margins. They are the lifeblood of our economy and our everyday cultural lives, but we have more work to do to support them and increase resiliency. Especially for employees who may be working paycheck to paycheck, the lost shifts and layoffs we’ve seen during the pandemic can threaten their livelihoods. This crisis has underscored the importance of having access to short- and long-term savings.
Buttle: How can states and organizations collaborate to support small businesses and their employees?
Fiona Ma: My office has worked hard to bring several small business assistance programs to employers throughout the state. We’ve hosted dozens of webinars, many in partnership with local chambers of commerce and economic development offices, to educate employers about new and existing resources to help them through this time. It’s been a great opportunity for us to partner with local organizations to reach their memberships and audiences. There are so many great programs—like CalSavers—that are unknown to small businesses and entrepreneurs and I’m proud to use my office to amplify their message.
Buttle: How has CalSavers worked to educate businesses about the program and the benefits it can provide? What lessons can other states learn from these efforts?
Selenski: First, we’re sending notifications directly to every eligible employer by both paper mail and email, with increasing frequency as they approach their deadlines. That direct targeted approach is absolutely essential, but we’ve also worked hard to develop a broader outreach strategy so that by the time employers receive those notices from us, hopefully they’ve heard about us through their existing network and understand what we’re about or at least have a sense that their trusted community leaders vouch for us. Local chambers of commerce and industrial associations have been incredible partners in helping us get the word out.
We used to do a lot of this work in-person, but now it’s all transitioned to webinar format, which allows us to do more. In addition to presenting at several sessions per week hosted by these community organizations, we host three to four public webinars of our own per week to provide overviews for employers and how-to instruction on getting started. Anyone can go to our website to sign up for one of those.
We’re also investing in digital advertising on almost every social media platform to raise awareness about the program and drive employers to register. While it would be wonderful to have more resources to expand into television and radio, it’s been exciting to see some of our nonprofit partners take it upon themselves to produce advertisements to get the word out on their own.
We’re proud that we’re able to do a lot with a little. As for lessons for other states, it’s really important to understand that even with the power of an employer requirement and automatic enrollment for employees, robust employer outreach and marketing is necessary to drive growth and sustainability. Policymakers need to enable those strategies by providing sufficient support through legislative start-up loans, understanding that it will pay off and help achieve the goal of broader retirement security sooner. And, as with any big bold policy proposal, stakeholder engagement is key early and often. You need to invite small business advocates to the table at every step—design, build, and launch—to ensure the program works for them, because they will be your best ambassadors when it’s time to engage employers.
Buttle: The deadline for larger employers (more than 100 employees) to register was September 30. Has Covid-19 impacted the employer eligibility timeline?
Selenski: Yes. The original deadline for the largest employers was June 30 and we took action to push the deadline back to September 30 because we knew employers were facing severe challenges. We hope that the extension was helpful as all businesses and the entire economy had to adapt to our new normal over the spring and summer. Going forward into recovery, our team is here to assist employers and we hope they’ll see CalSavers as part of their reopening plan.
This piece originally appeared in Forbes on November 5, 2020. You can view it online here.
Rhett Buttle is the founder of Public Private Strategies, Executive Director of the Small Business Roundtable, Founder of the NextGen Chamber of Commerce, a Senior Fellow at The Aspen Institute, and a contributor for Forbes.
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Rhett Buttle, Founder and CEO of Public Private Strategies, joined Rahel Solomon on CNN to talk about trade policy and the impact of tariffs on small businesses. Watch the full interview here or below.
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WASHINGTON, D.C. – Today, the Bureau of Labor Statistics released its March jobs report, showing the US economy added 303,000 jobs in March while the unemployment rate fell to 3.8%. CNN characterized US job growth in March as “whopping,” with gains far outpacing economists' expectations. In response to the strong jobs report, Rhett Buttle, Founder of Public Private Strategies, released the following statement: “The labor market continues to exceed economists’ expectations, with over 300,000 jobs added in March – 50% more than economists anticipated. Bipartisan investments like the Bipartisan Infrastructure Law, CHIPS & Science Act, and Inflation Reduction Act are fueling broad-based economic growth that is strengthening the labor market, increasing consumer confidence , and leading to over 16 million new small business applications in the past three years – the most ever in that period and a reflection of deep optimism among American entrepreneurs about our economic future.” “Lawmakers must continue to double down on America’s economic momentum, and that starts with addressing the issues that business owners say are their top priorities, from lowering health care and prescription drug costs to strengthening and protecting American democracy .” ### About Rhett Buttle, Founder, Public Private Strategies and President, Public Private Strategies Institute Rhett Buttle is an entrepreneur, advocate, and one of the most trusted leaders at the intersection of business and policy in Washington, DC. Most recently, Rhett served as National Business Advisor to President Joe Biden’s 2020 campaign. He has worked for President Barack Obama, Secretary of State Hillary Clinton, and Governor Arnold Schwarzenegger. Rhett is the founder of Public Private Strategies (PPS) and President of the Public Private Strategies Institute (PPSI), which works to bring together the public and private sectors to build coalitions, activate campaigns, and create strategic partnerships to drive policy and market outcomes. In these roles, he advises leading policymakers, foundations, nonprofits, and corporations. About Public Private Strategies Public Private Strategies (PPS) creates opportunities where the public and private sectors meet. We bring together diverse allies including foundations, associations, corporations, small businesses, and entrepreneurs to solve pressing societal challenges. By harnessing the power of the private sector, we build coalitions, activate campaigns, and create strategic partnerships to drive desired policy and market outcomes. Learn more at www.publicprivatestrategies.com . As the United States marks the 14th anniversary of the AffordableCare Act (ACA), more Americans now have health care coverage than ever before. Since its enactment in 2010, the ACA has been a vital tool for Main Street, providing access to affordable healthcare options and fostering a healthier, more productive workforce.
WASHINGTON, D.C. – Today, the Bureau of Labor Statistics released its March jobs report, showing the US economy added 303,000 jobs in March while the unemployment rate fell to 3.8%. CNN characterized US job growth in March as “whopping,” with gains far outpacing economists' expectations. In response to the strong jobs report, Rhett Buttle, Founder of Public Private Strategies, released the following statement: “The labor market continues to exceed economists’ expectations, with over 300,000 jobs added in March – 50% more than economists anticipated. Bipartisan investments like the Bipartisan Infrastructure Law, CHIPS & Science Act, and Inflation Reduction Act are fueling broad-based economic growth that is strengthening the labor market, increasing consumer confidence , and leading to over 16 million new small business applications in the past three years – the most ever in that period and a reflection of deep optimism among American entrepreneurs about our economic future.” “Lawmakers must continue to double down on America’s economic momentum, and that starts with addressing the issues that business owners say are their top priorities, from lowering health care and prescription drug costs to strengthening and protecting American democracy .” ### About Rhett Buttle, Founder, Public Private Strategies and President, Public Private Strategies Institute Rhett Buttle is an entrepreneur, advocate, and one of the most trusted leaders at the intersection of business and policy in Washington, DC. Most recently, Rhett served as National Business Advisor to President Joe Biden’s 2020 campaign. He has worked for President Barack Obama, Secretary of State Hillary Clinton, and Governor Arnold Schwarzenegger. Rhett is the founder of Public Private Strategies (PPS) and President of the Public Private Strategies Institute (PPSI), which works to bring together the public and private sectors to build coalitions, activate campaigns, and create strategic partnerships to drive policy and market outcomes. In these roles, he advises leading policymakers, foundations, nonprofits, and corporations. About Public Private Strategies Public Private Strategies (PPS) creates opportunities where the public and private sectors meet. We bring together diverse allies including foundations, associations, corporations, small businesses, and entrepreneurs to solve pressing societal challenges. By harnessing the power of the private sector, we build coalitions, activate campaigns, and create strategic partnerships to drive desired policy and market outcomes. Learn more at www.publicprivatestrategies.com . As the United States marks the 14th anniversary of the AffordableCare Act (ACA), more Americans now have health care coverage than ever before. Since its enactment in 2010, the ACA has been a vital tool for Main Street, providing access to affordable healthcare options and fostering a healthier, more productive workforce.
WASHINGTON, D.C. – This week, the U.S. Small Business Administration (SBA) announced the agency's first-ever voter registration agreement with the Michigan Department of State (MDOS). This landmark memorandum of understanding (MOU), signed to bolster civic engagement and voter registration efforts in Michigan, marks a significant milestone in empowering small business owners. Under the MOU, MDOS will create a dedicated URL for the SBA, enabling online visitors to easily register to vote. Additionally, MDOS officials will have the opportunity to conduct in-person voter registration at SBA's small business outreach events, providing direct support to entrepreneurs. Michigan, with its thriving small business sector of over 900,000 enterprises employing 1.9 million individuals, stands to benefit significantly from this initiative. The SBA, in an effort to bolster its mission of ensuring small businesses thrive, will also promote voter registration nationwide by integrating information from Vote.gov into its marketing materials, website, and social media channels, and through signage at SBA offices and events throughout the country. Following the announcement, Rhett Buttle, Founder of Public Private Strategies & President of the Public Private Strategies Institute, released the following statement: "Small business owners have the power to drive positive change. This historic collaboration between the SBA and MDOS underscores the shared commitment to amplifying the voices of small business owners in Michigan and across the nation. By providing access to voter registration information, businesses are supported, and our democracy is strengthened, which is crucial for our economic prosperity. This agreement fosters a culture of civic engagement that benefits us all." Small business owners interested in registering to vote in Michigan can visit the Michigan Department of State's Voter Information Center at mvic.sos.state.mi.us . For more information about the SBA's programs, financial assistance, and services supporting small businesses, visit www.sba.gov . ### About Rhett Buttle, Founder, Public Private Strategies and President, Public Private Strategies Institute Rhett Buttle is an entrepreneur, advocate, and one of the most trusted leaders at the intersection of business and policy in Washington, DC. Most recently, Rhett served as National Business Advisor to President Joe Biden’s 2020 campaign. He has worked for President Barack Obama, Secretary of State Hillary Clinton, and Governor Arnold Schwarzenegger. Rhett is the founder of Public Private Strategies (PPS) and President of the Public Private Strategies Institute (PPSI), which works to bring together the public and private sectors to build coalitions, activate campaigns, and create strategic partnerships to drive policy and market outcomes. In these roles, he advises leading policymakers, foundations, nonprofits, and corporations. About Public Private Strategies Public Private Strategies (PPS) creates opportunities where the public and private sectors meet. We bring together diverse allies including foundations, associations, corporations, small businesses, and entrepreneurs to solve pressing societal challenges. By harnessing the power of the private sector, we build coalitions, activate campaigns, and create strategic partnerships to drive desired policy and market outcomes. Learn more at www.publicprivatestrategies.com . As the United States marks the 14th anniversary of the AffordableCare Act (ACA), more Americans now have health care coverage than ever before. Since its enactment in 2010, the ACA has been a vital tool for Main Street, providing access to affordable healthcare options and fostering a healthier, more productive workforce.
WASHINGTON, D.C. – As the United States marks the 14th anniversary of the AffordableCare Act (ACA), more Americans now have health care coverage than ever before. Since its enactment in 2010, the ACA has been a vital tool for Main Street, providing access to affordable healthcare options and fostering a healthier, more productive workforce. Over the past decade, the ACA has significantly benefited entrepreneurs and workers by offering affordable coverage options through Health Insurance Marketplaces, providing tax credits to ease the cost of providing healthcare, and eliminating pre-existing condition exclusions. These provisions have brought stability and predictability to healthcare costs, allowing businesses to plan for the future with confidence. To mark the 14-year anniversary of the ACA, Rhett Buttle, Founder of Public Private Strategies and appointee at the Department of Health and Human Services under President Obama, released the following statement: "The Affordable Care Act has been an important milestone for businesses, entrepreneurs and workers across America. Today, more Americans have health insurance than ever before in our history. By offering affordable healthcare options and removing barriers, the ACA has allowed entrepreneurs to focus on what they do best – innovate, grow, and create jobs. “The ACA has set a strong foundation for access to high-quality and affordable care, but there’s so much more we need to do to help our job creators thrive. Building off the ACA, the Inflation Reduction Act takes important steps to tackle healthcare costs in our country. We must continue this progress and tackle these important issues. In survey after survey , small business owners have identified the cost of healthcare and prescription drug prices as their top concern. We should strengthen recent action to lower the cost of prescription drugs and continue to provide strong subsidies to make the plans offered under the ACA affordable to more Americans.” ### About Rhett Buttle, Founder, Public Private Strategies and President, Public Private Strategies Institute Rhett Buttle is an entrepreneur, advocate, and one of the most trusted leaders at the intersection of business and policy in Washington, DC. Most recently, Rhett served as National Business Advisor to President Joe Biden’s 2020 campaign. He has worked for President Barack Obama, Secretary of State Hillary Clinton, and Governor Arnold Schwarzenegger. Rhett is the founder of Public Private Strategies (PPS) and President of the Public Private Strategies Institute (PPSI), which works to bring together the public and private sectors to build coalitions, activate campaigns, and create strategic partnerships to drive policy and market outcomes. In these roles, he advises leading policymakers, foundations, nonprofits, and corporations. About Public Private Strategies Public Private Strategies (PPS) creates opportunities where the public and private sectors meet. We bring together diverse allies including foundations, associations, corporations, small businesses, and entrepreneurs to solve pressing societal challenges. By harnessing the power of the private sector, we build coalitions, activate campaigns, and create strategic partnerships to drive desired policy and market outcomes. Learn more at www.publicprivatestrategies.com . As the United States marks the 14th anniversary of the AffordableCare Act (ACA), more Americans now have health care coverage than ever before. Since its enactment in 2010, the ACA has been a vital tool for Main Street, providing access to affordable healthcare options and fostering a healthier, more productive workforce.
WASHINGTON, D.C. – Today, the Biden-Harris Administration announced a record 16 million new small business applications in the last three years. The numbers also highlighted that diverse-owned businesses are on the rise. These statistics are a testament to the significant impact that the Investing in America agenda has had for businesses owners, diverse businesses, and their communities. The record number of new business applications is also a sign that small businesses and entrepreneurs are confident and optimistic about the economy, generating resilient and competitive markets, and growing opportunities for Americans. Following the announcement, Rhett Buttle, Founder of Public Private Strategies, released the following statement: “This historic number of new business applications is an exciting sign of the economic resilience of American entrepreneurial spirit. As a result of the investment through the Investing America agenda, led by the Biden-Harris Administration and Congress, small business owners and entrepreneurs are newly equipped with the tools necessary to succeed and excel. These investments, the majority of them the result of bipartisan cooperation, from the Bipartisan Infrastructure Law, Inflation Reduction Act, and Chips and Science Act, are delivering for communities across the country and creating an economy where businesses small and large can thrive. Coming out of the global pandemic the United States has seen unprecedented growth with major new federal investments providing small business owners and entrepreneurs with the tools and resources to generate new businesses, jobs, and a strong economic future.” ###
WASHINGTON, D.C. – Last week, a bipartisan group of members from both the Senate and the House of Representatives announced an effort to advance paid leave legislation. The new, bicameral efforts will explore solutions to paid parental, caregiving, and personal medical leave for all Americans. The bipartisan group is seeking input from advocacy, business, and other stakeholder organizations to ensure the policies put forth by the group are effective and meaningful for employers and employees. The Request for Information creates a framework for stakeholder input and ensures that small and large business voices are heard throughout the process. In May, Public Private Strategies facilitated a roundtable with the House Paid Leave Working Group and small business leaders and owners from 11 organizations to discuss the opportunities and challenges to offering paid family and medical leave benefits for employees. The roundtable explored potential pathways forward for both small business owners and the self employed. In a report published by the House Paid Leave Working Group, key findings from the roundtable included: Small business owners want to provide paid leave to their workers. Small businesses recognize that paid family leave would level the playing field with large employers, helping them compete with larger employers to attract and retain workers. Highlighting how government supported solutions to expand access to paid leave can incentivize entrepreneurship by giving entrepreneurs themselves access to the benefit. Small business owners want to provide the benefit, they grapple with two primary challenges in doing so: cost and staffing. Following the announcement, Katie Vlietstra Wonneberg, Principal of Public Private Strategies, released the following statement: “The announcement last week of the Senate Bipartisan Working Group and the Bicameral Bipartisan RFI to explore solutions around paid leave is an exciting new step in the right direction to creating a paid leave policy. In the 30 years since the creation of FMLA, we have yet to advance paid leave that is inclusive of all size businesses. “The business community has been active in the conversations over the past year in coordination with the House Bipartisan Work Group. With the next iteration of these conversations being convened in the Senate, there is a great opportunity to continue to engage with the business community, who see paid leave as a way to ensure small businesses can compete for talent, provide a valued benefit to employees, and ensure continuity in their workforce. Public Private Strategies applauds the bicameral, bipartisan efforts to ensure that all stakeholders are invited to participate and explore innovative pathways forward on paid leave. We welcome the opportunity to work closely with each office to provide insights and expertise on a framework that works for all businesses including the self employed.” ###
WASHINGTON, D.C. – Since 2010, Small Business Saturday has recognized and celebrated the contributions of small, independent businesses, which are the foundation of the U.S. economy and the lifeblood of local communities. November and December account for almost 20% of small businesses total retail sales each year, making the holiday season a critical time for local entrepreneurs, Main Streets across the country, and economic growth overall. Due to the economic investments made by the Biden-Harris Administration including the Bipartisan Infrastructure Law, Inflation Reduction Act, and CHIPS and Science Act, we have seen historic investments in small businesses. A recently released fact sheet by the White House shows the impact of these investments in communities, including a record 14.6 million applications to start businesses. Ahead of this year’s Small Business Saturday, Rhett Buttle, Founder of Public Private Strategies, released the following statement: “The holiday season is one of the most vital times of the year for small businesses, bringing workers, consumers, communities, and the economy together and generating innovation and prosperity,” said Rhett Buttle. “Small businesses employ over 61 million Americans, about half of private sector employees, and are the backbone of our communities and economy. Data from the U.S. Census Bureau on new small business applications shows that the past two years have been the strongest two years on record for new small business applications – as a result of the Investing in America agenda. As entrepreneurs continue to build small businesses, economic growth flows into communities across the country, encouraging investments and fostering a stronger economy and democracy.” Here are Some of the Public Private Strategies Team’s Favorite Small Businesses: Beuch e rt’s Saloon - District of Columbia Hill’s Kitchen - District of Columbia Salt & Sundry - District of Columbia Brave + Kind Bookshop - Georgia Revelry Brewing - Maryland Snug Books - Maryland Pamela Salisbury - New York Sphere + Sundry - Online Brut Champagne and Wine Bar - Virginia Grooming Store - Virginia Reedville Coffee House - Virginia Independent K9 - West Virginia ###
WASHINGTON, D.C. – Two years ago, President Biden signed the Bipartisan Infrastructure Law, a historic investment in America’s infrastructure and clean energy economy. The law marks the most significant piece of infrastructure legislation in decades, designating funding for roads, bridges, broadband, energy, transportation, and much more. Since its passage, the United States has seen remarkable progress and economic growth, putting American businesses at the forefront of global competition. Public Private Strategies Institute (PPSI) has partnered with the U.S. Small Business Administration & the U.S. Department of Commerce to launch a webinar series focused on expanding public awareness of opportunities stemming from the Bipartisan Infrastructure law and other economic investments in the Investing in America agenda. Specifically, the initiative will educate business leaders about how investments in infrastructure, clean energy, manufacturing and more can create opportunities for them, their communities, and the economy overall. In addition, last year, PPSI launched Build Up Local , an initiative in partnership with the National Urban League (NUL) and National Minority Supplier Development Council (NMSDC) . Build Up Local provides business owners with resources and programs made available through the Bipartisan Infrastructure Law, equipping small businesses with information on infrastructure contracting opportunities and more. Ahead of the two-year anniversary of the Bipartisan Infrastructure Law, Rhett Buttle, Founder of Public Private Strategies & President of the Public Private Strategies Institute, released the following statement: "The Bipartisan Infrastructure Law has had an enormous impact on American businesses and the economy at large. By investing in our nation’s aging infrastructure, the Biden-Harris Administration has taken monumental steps to once again put the United States in a competitive position on the global stage. As we come up on two years of this historic achievement, we continue to see the benefits that businesses are reaping. Initiatives like Build Up Local, are crucial to ensuring small businesses and entrepreneurs from all backgrounds access contracting opportunities made available under the legislation and have the resources they need to succeed in our growing economy.” ###
