State’s retirement plan

CalSavers enrolls employees who don’t have program at work

Zachary Davis, who with a partner owns a small ice cream plant, two ice cream shops and a cafe in Santa Cruz, started offering a health care plan to his staff before he legally had to. He wanted to offer a 401(k) plan, but the cost and “compliance challenges” were simply too high, he said.

“It was going to cost $8,000 to $10,000 for the audit and setup,” he added. “Then there was the administration.” His companies, the Penny Ice Creamery and the Picnic Basket cafe, employ about 50 workers, but many are students who come and go. Tracking who was eligible to participate would be an administrative nightmare for a company without a full-time human resources person “and if we missed something

Jim Gensheimer / Special to The Chronicle Zachary Davis, owner of the Penny Ice Creamery in Santa Cruz, talks with employee Monique Plossl. Davis is one of the first 20 employers to register in the state’s CalSavers retirement savings program.