Recent Changes to the CalPERS 457 Plan Document

CalPERS reviews the Plan Document regularly as part of administering the CalPERS Supplemental Income 457 Plan for agencies.

An amendment and restatement of the Plan Document have been made based on best practices, current federal tax laws and feedback from agencies and participants.

Here is a summary of the changes that add value for your employees and simplify administrative steps for your agency. To see the full provisions within the Plan document, click on the section numbers below.

Self-Managed Accounts, Section 10.4
Previously, employers had to adopt the Self-Managed Account for their CalPERS 457 Plan if they wished to offer it to their participants. Now this option is available to all CalPERS 457 Plan participants, and they can open their own SMAs online.
 
Loans, Section 8.5
In the past, participants who had borrowed from their CalPERS 457 Plan account and were terminated from service had to repay the outstanding loan balance in full immediately. To help ease that potential financial strain, the provision now allows participants to work directly with Voya^® to make monthly ACH debit repayments for the term of the loan.

Unforeseen Emergency Withdrawals, Section 6.6
Until now, participants faced with a qualifying event such as a sudden financial or medical hardship could request a distribution from their CalPERS 457 Plan accounts, but only if their employers signed the application first. This presented an awkward situation for employers and participants who had privacy concerns. The new process eliminates the need for your agency to review or sign UEW forms. CalPERS has delegated the UEW application and approval process to Voya^® who will work with participants seeking UEWs.

Roth Elective Deferrals, Sections 1.21, 3.8, 7.6
If your agency adopts the Roth option, your employees are allowed to make Roth after-tax contributions to the CalPERS 457 Plan.

Check Out the New Roth 457 Option

Since it became available in March, many agencies throughout the state have signed up to add the Roth 457 option to their CalPERS 457 Plan.

It’s simple for your agency to give this choice to your participants, too. Just complete and return the Roth Adoption Form to CalPERS.

Once CalPERS approves your Roth adoption request, the adoption agreement may become effective no earlier than the calendar month following the month in which the agreement is made. Your employees may elect to make Roth after-tax contributions as soon as Voya^® activates the Roth provision for your CalPERS 457 Plan.

Roth contributions are deducted from the employees’ payroll, then processed and reported in my|CalPERS, just like traditional pre-tax contributions.

Here’s where to find out more or start the Roth adoption process:

• Review the payroll guide to new Roth adoptions.

• Get to know the Roth option by reading the Roth brochure and the employers special edition.

• Download the Roth Adoption Form.

• Call us toll free 1-800-696-3907 or send us an email.

Remit CalPERS 457 Plan Payments Without Delay

CalPERS 457 Plan contributions are due as soon as the funds are deferred from a participant’s paycheck.

Employers are responsible for ensuring prompt payments. Plan deferrals are different from receivables due to be paid 30 days after they are entered into my|CalPERS. Please make sure your payroll team doesn’t confuse the two, or worse, wait 30 days!

The sooner the money goes into CalPERS 457 Plan accounts, the sooner participants could accumulate potential investment earnings for retirement.
 
For a faster, automatic alternative to writing checks to remit CalPERS 457 Plan contributions, consider signing up for Electronic Fund Transfer (EFT) payments in my|CalPERS. The Employer Payroll Guide describes how to make EFT payments, step-by-step.

If your payroll specialists need anything related to the CalPERS 457 Plan, they can send an email or call the Employer Service line at 1-800-696-3907 Monday – Friday, 8 a.m. – 5 p.m. (Pacific Time). Our team will help directly or connect them with the right person or resource.

Personal Phone Reviews For Your Employees

Your employees can get answers and help with their CalPERS 457 Plan accounts from experienced registered representatives.*

When they use www.calpers457.checkappointments.com to set an appointment, they will receive a confirmation and reminder by email. Or they can call toll free 1-888-713-8244 weekdays 8 a.m. – 5 p.m. (Pacific Time).

* Information from registered Plan Service Representatives is for educational purposes only and is not legal, tax or investment advice. Local Plan Service Representatives are registered representatives of Voya Financial Advisors, Inc. (member SIPC).

Contact Us

CalPERS Supplemental Income 457 Plan representatives are available for my|CalPERS and payroll assistance.
Email us or call 1-800-696-3907, Monday – Friday, 8 a.m. – 5 p.m. (Pacific Time).