SECOND QUARTER    |   2020
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Lower fees in the CalPERS 457 Plan effective July 1

The CalPERS 457 Plan is constantly reviewed to ensure that it best serves those currently participating and those who will do so in the future. As part of newly negotiated contracts with our investment manager and plan administrator, CalPERS is pleased to announce that the costs associated with investing in the 457 Plan investment fund options are going down!

As part of that review of overall fees and expenses, effective July 1, 2020, the costs will be reduced to a range between 0.31% - 0.44%, depending on the investment. This represents an average overall reduction of more than 0.11%.

The fee reductions provide even more value to your employees as a retirement planning and saving option. CalPERS 457 Plan participants can now keep more of their investment dollars working in their account, accumulating more savings over a lifetime. CalPERS will continue to review fees and operating costs, and future changes to fees and costs may be made at any time. For more information and a list of the changes per investment, please read the Fee Reduction Letter.


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In this Edition

Lower fees in the CalPERS 457 Plan effective July 1

UPDATED — CalPERS 457 Plan changes as a result of the CARES Act

CalPERS 457 Plan Account Managers are available now!

Loan Repayment Option Reminder for Terminated Employees

Schedule a Plan Review

Employees are welcome to join us for a CalPERS 457 Plan webinar

Contact Us

 

Resources

Archive

Contact a local representative

Webinars schedule

CalPERS Employer Resource Center

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calpers.voya.com

View the quarterly making cents newsletter mailed to your employees.

 

UPDATED — CalPERS 457 Plan changes as a result of the CARES Act

The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27, 2020 to help ease some of the financial pressures facing Americans in the wake of COVID-19. If an employee has been impacted by COVID-19 and self-certifies that he or she meets the Eligibility Requirements, the CARES Act would allow more access to retirement savings through a Coronavirus-related distribution (CRD). Distributions are participant-directed and do not require agency involvement or approval.

Cares Act NoticeEmployees can learn more about taking a CRD from the CalPERS 457 Plan in the CalPERS CARES Act Notice

The CalPERS CARES Act Notice has been updated with details for employees delaying CRD loan repayments (if loans are permitted by your Plan). Employees:

  • May delay the repayment that is due on a new or existing loan until January 1, 2021 for any loan repayments that are due from March 27, 2020 through December 31, 2020.
  • Will have their loan repayment amount adjusted on January 1 2021 to reflect the loan repayment delay and include accrued interest during the delay period.

If your employees ask about taking a CRD from the CalPERS 457 Plan, please direct them to call 800-260-0659 for assistance and encourage them to weigh the immediate benefit of taking a loan or plan distribution.

 

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virtual screen meeting CalPERS 457 Plan Account Managers are available now!

Your agency’s CalPERS Account Manager* is available for virtual presentations and appointments with your employees to help with their CalPERS 457 Plan accounts. Virtual meetings with an Account Manager are perfect for your employees who may be out in the field or working from home.

Employees can schedule personal one-on-one phone appointments by visiting calpers457.timetap.com to sign up. To discuss hosting an employee webinar presentation led by your Account Manager, please call 888-713-8244 weekdays between 8 a.m. – 5 p.m. PT.

* 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).

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Loan Repayment Option Reminder for Terminated Employees

Terminated CalPERS 457 Plan participants who have an outstanding 457 Plan loan at separation are allowed to make arrangements to continue to pay the loan with monthly ACH debit repayments for the term of their loan. To do so, they would need to work directly with a Voya Customer Service Representative. Previously, the only option at separation was a full loan repayment or incur taxation on the unpaid loan balance. If the terminated participant is repaying the loan via ACH and then makes a withdrawal from the 457 Plan, though, the loan will then need to be repaid in full immediately or become taxable.

Please refer questions about loans for terminated participants to the toll-free Plan Information Line at 800-260-0659.

 

Schedule a Plan Review

A CalPERS 457 Plan review is available at your request. The summer months are a great time to schedule your review before the Annual Education Forum. This keeps you informed and helps satisfy your fiduciary responsibility to oversee the CalPERS 457 Plan at your agency. Email Dave Saavedra or call 916-795-3908 to arrange a review in person or as a written document.

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Employees are welcome to join us for a CalPERS 457 Plan webinar

Your employees are welcome to register for CalPERS webinars on a variety of retirement planning and savings topics. A different one-hour webinar is offered each Friday of the month at 12 p.m.

webinar iconEmployees can visit zoom.us/join and enter the ID below to sign up any of the available dates.

Bridging the Gap
ID: 980 9245 8096
1st Friday of the month

Staying the Course
ID: 998 4130 9600
2nd Friday of the month

Exploring the Roth Option
ID: 837 686 594
3rd Friday of the month

Retiree Connection
ID: 924 9594 8295
4th Friday of the month

Contact Us

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

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Plan administration services provided by Voya Institutional Plan Services, LLC. 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).

This newsletter was prepared by Voya Financial®. Articles by Voya are not intended to provide tax or investment advice. Any opinions, advice, statements, services, offers or other information or content expressed or made available herein has not been independently verified by the California Public Employees’ Retirement System (CalPERS), nor does it necessarily state or reflect the views of CalPERS. Reference herein to any specific commercial products, processor service by trade name, trademark, manufacturer or otherwise does not necessarily constitute or imply its endorsement, recommendation or favoring by CalPERS. © 2020 Voya Services Company. All rights reserved

 

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