CalSavers on hunt for new leader as executive director Selenski departs

CalSavers on hunt for new leader as executive director Selenski departs
The California auto-IRA program is not only the biggest in the country, but its arrival correlated with a pick-up in new 401(k) plans in the state.
APR 17, 2023

The biggest auto-IRA program in the country is looking for a new executive director after Katie Selenski, who has led it since its inception, stepped down last Friday.

CalSavers, which at more than $474 million represents over half of the country’s total assets in auto-IRAs, covers more than 417,000 workers across 118,000 employers, according to data from the program and Georgetown University’s Center for Retirement Initiatives.

“I have just as much confidence in the program as I've ever had and I am so proud of our impact, but after six years of intense work to start it from scratch and see it through several stages of evolution, it's time for me to pass the baton,” Selenski said in an email. “It was a big lift to design, build and roll out the program and impose the mandate while fending off litigation that went all the way to the U.S. Supreme Court and responding to Covid.”

Selenski gave her notice about six weeks ago, and the CalSavers board has since started the process of a search for her successor.

“CalSavers has a talented and professional team, and the Board is confident in their ability to keep the program operating smoothly in the interim,” Joe DeAnda, director of communications for the California State Treasurer’s Office, said in an email. “While we’d like to appoint a replacement quickly, we will take our time to ensure that we find the best candidate for the job.”

Currently, California employers with five or more employees must participate in the program if they do not already offer a retirement plan for their workers. Businesses with fewer than five employees can participate voluntarily but will be required to do so by the end of 2025, according to the state.

The California legislature passed the law establishing CalSavers in 2017, and the program started in 2019. It faced an early legal challenge from conservative group the Howard Jarvis Taxpayers Association, although the case was dismissed several times and appealed, ultimately heading to the Supreme Court, which last year declined to hear the lawsuit, effectively ending the litigation.

Selenski is taking time off to travel and recharge before deciding on her next move, she said.

“I felt it was important to wait until I separated from my government role before really engaging about options in the industry,” she said.

Aside from growing quickly to become by far the biggest auto-IRA program in the U.S., a sign of the effect that CalSavers is having on retirement saving is a bump in the creation of new employer-sponsored 401(k)s in the state, she noted. A report last week from The Pew Charitable Trusts found that new 401(k)s' share of total plans in California averaged 9.4% between 2019 and 2021, compared with an average of 8.1% from 2013 to 2018.

“I'm so proud of what our team has accomplished so far, and it's really just the beginning. CalSavers and our peer states are driving expansion of retirement security on two fronts,” Selenski said. “It's not just the participation in our public programs; it's also the new coverage provided by new 401(k) plan formations as a result of our mandates.”

Latest News

DOJ's fraud sweep bags over $1B in convictions, guilty pleas and indictments in a single week
DOJ's fraud sweep bags over $1B in convictions, guilty pleas and indictments in a single week

Medicare scam, pandemic benefit theft, offshore tax evasion — federal prosecutors are casting a wide net.

Retirement without guaranteed income streams may mean near-total asset wipeout
Retirement without guaranteed income streams may mean near-total asset wipeout

Report finds that pension income acts as a financial lifeline for retirees facing late-life shocks and raises urgent questions about the DC-only future.

Federal judge dismisses Eltek manipulation lawsuit against Morgan Stanley Smith Barney
Federal judge dismisses Eltek manipulation lawsuit against Morgan Stanley Smith Barney

Nine-month electronic trading freeze and share lending program at the center of dismissed claim.

RIA wrap: Dynamic strikes South Carolina deal to reach $7B AUM milestone
RIA wrap: Dynamic strikes South Carolina deal to reach $7B AUM milestone

Meanwhile, Rossby Financial's leadership buildout rolls on with a new COO appointment as Balefire Wealth welcomes a distinguished retirement specialist to its national network.

Rethinking diversification amid a concentrated S&P 500
Rethinking diversification amid a concentrated S&P 500

With a smaller group of companies driving stock market performance, advisors must work more intentionally to manage concentration risks within client portfolios.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline