Savings Plus Department of Human Resources (CalHR) 2016

What Is This Program? It’s a deferred compensation plan that allows state employees to supplement their retirement benefits through payroll deductions.

Plan Choices! Savings Plus offers two types of plan options: 457/Roth 401(k)/Roth

How Employees Can Enroll 1)SPP website Initial minimum deferral is $50.00 per month 2) Attend an Enrollment Seminar Note: Participants can roll money into SPP from prior employers’ 457, 401(k), 403(b) or Roth IRA

Rehired/Retired Annuitants  As of April 1, 2009, can participate in SPP  Rehired 180 days after separation  Must be a State /CSU employee  Paid through State’s payroll system  Currently not receiving a distribution  Enroll at

Additional Tools & Services For You & Your Employees 1.On-line access to account information 24/7 2.Current updates posted to Website 3.Quarterly Statements and Newsletters (date driven) 4.Access Direct 24/ Customer Service Representative Call toll-free at (enter PW) between 5:00 a.m. to 8:00 p.m. Monday - Friday

Online Address Changes  Employees can change address on-line with SPP  Employees should always submit EAR Form to Personnel  Available for 457/401(k) Roth, PST, and ARP

How You Can Help Your Employees  Notify at the time of hire (include information with new employee orientation packets)  Provide the SPP At A Glance handout available at under “Publications” Quick linkwww.CalHR.ca.gov  Provide toll free number if employees have questions

Transfer Lump Sum Separation Pay – A benefit available to all employees eligible to cash out leave balances upon separation from service – Leave Credits can be tax deferred up to Federal limits Exceptions: sick leave, education, PPL, PLP (LV)

Transfer Lump-Sum Separation Pay Flyer Employee obtains this form on our Website: Support & Forms tab, More Forms, Forms & Publications

Transfer Lump-Sum Separation Pay Contribution 401(K) and 403(b) Annual Contribution Limit:$18, Annual Contribution Limit:$18, (K) and 403(b) Age-Based Contribution Limit:$6, Age-Based Contribution Limit:$6,000 Annual Contribution Total:$48,000 The dollar amount is reviewed annually and may increase depending on inflation. See our Web site for more information. Contribution limits between plans: Coordination limits for the 401(k), 403(b) and 457 plans were eliminated. You may defer up to the maximum annual contribution limit to both plans. ++ Age Based Contribution: Employees age 50 or older

Education and Outreach Nationwide sponsor’s on-site seminars Taught by licensed retirement specialists Classes are free and easy to register Go to and click on the Savings Plus then Educational Workshopswww.calhr.ca.gov Educational Workshops

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Part-Time, Seasonal, and Temporary Employees Retirement Program (PST)

What is PST?  A mandatory retirement program for employees who are not members of CalPERS or covered by Social Security  Automatically deducts 7.5% (pre-tax) of gross pay from each check

Underfunded Accounts  PML –  Affects All Plans 401(k) and 457 PST ARP Common Errors: Processing Enrollment/Withholding Amount Adjustments

Questions on Eligibility  Determine if employee is/was CalPERS member: Check My CalPERS Call CalPERS Member Services:  PST Fact Sheet PST Fact Sheet Located on our Web site Click on PST Program.  Once CalPERS, always CalPERS (unless employee has withdrawn CalPERS’ funds)

HR Personnel Can Assist Savings Plus  Enrollment and placement of the employee in the PST Program Refer employees to the PST Fact Sheet on our Web site Fact Sheet  Encourage employee to make address changes by submitting EAR  Change retirement from PST to ARP or CalPERS upon reaching full-time status Eligible at 1,000 hours in a fiscal year SPP will transfer PST funds to 457

Questions? For PST Program Updates & Information: Visit the Savings Plus Web site PST program (PST program under about Savings Plus) or call toll-free

Alternate Retirement Plan (ARP)

What is ARP?  Mandatory retirement program for State Misc./Industrial employees hired on or after August 11, 2004, through June 30,  Qualify for CalPERS membership  PML’s/Pay Letters

Retirement Savings Based on Hire Date  ARP provides 2 years (24 months) of retirement savings to new employees  Funds are automatically deducted (pre-tax) for a 24 month period at the applicable CalPERS rate (depending on BU designation amount in excess $513)  Governor’s Appointees – special rule may apply

ARP Administrative Fees Employer Administrative fee of $4.80 applies to all deductions, including corrections, both positive & negative.

Determine Appropriate Retirement Codes Use My CALPERS  = Cost containment of ARP Administrative fees & underfunded ARP Employer cost

ARP Eligibility  ARP Worksheet no longer available at CalHR CalHR  Also not available On PIE,  My/CalPERS  Policy Memos under popular links

ARP Timeline Without A Break In Service Contributions to ARP First 24 months Phase 1 Contributions to CalPERS ARP Waiting Period (months ) Phase 2 3 month Election Period Months Phase 3

Shift From ARP To CalPERS At 24 Month Eligibility  Refer SCO Personnel Letter  When turn around PARs are received, make sure to give employees Publication 52 – Retirement Benefit Election Package CalPERS Circular Letter Deductions stop for ARP and go to CalPERS

ARP Phase III Communications  Notification Postcard  CalPERS Informational letter  Payout Election Notification  Payout Election Confirmation  Process of Elections

ARP Payout Options Option 1: Transfer ARP funds to CalPERS for service credit Option 2: Take a distribution Option 3: Transfer ARP funds to Savings Plus 401(k)

ARP Phase III Timeline Month 45 Postcard Mailed Month 46 CalPERS informational letter ARP Payout Election Notification mailed Months Makes election online or via call center Month 51 All elections processed Action taken on accounts

HR Personnel Can Assist Savings Plus  Determine the proper Retirement Code (refer to SCO Personnel Letters , and ; PML , refer to CALPERS ACES)  Encourage employees to provide current address with employer  Answer questions from your employees regarding ARP  Provide information upon separation (ARP flyer)

What Employees Need To Know  Refer to  Can view ARP account online  Update Address with Employer if active  Update Address with SPP if Separated

Who You Need To Contact If You Have Questions Employers Only  SPP (ARP Administration)  (Questions)  CalPERS (Eligibility)  SCO (Personnel Transactions)

Thank You Thank you for attending this session and helping your employees take the first step toward securing a better financial future!

Questions???? Call us at (866) Logon to your account at SavingsPlusNow.com Contact me Kelly Richmond Savings Plus Retirement Specialists are Registered Representatives of Nationwide Investment Services Corporation, member FINRA. Savings Plus representatives cannot offer investment, tax or legal advice. You should consult your own counsel before making retirement plan decisions.