Loan Reports Need Quick Action By Your Payroll Team

If your agency has adopted the loan provision, please remind your payroll team to give CalPERS Supplemental Income 457 Plan loan feedback reports prompt attention.

The reports are produced each Friday evening by Voya Financial^®, the CalPERS 457 Plan’s record keeper. If there was loan activity for the previous Monday through Friday, Voya^® sends an email that the report is ready to download from Sponsorweb. If there was no loan activity, no report is sent.

The report signals your team to initiate payroll deductions for new loans or stop deductions when loans are paid in full. Your payroll team must download and read the reports right away. Here’s what happens if they do not:

• Your agency’s CalPERS 457 Plan participants could fall behind on the required repayment schedule established in accordance with Internal Revenue Service criteria. 

• Voya’s system automatically generates loan delinquency notice letters any time a loan falls behind schedule 30 days. A second letter is generated at 60 days. Delinquency letters inform participants they must make up the missed payments to bring the loan current and avoid exceeding the maturity date on the loan.

• IRS guidance provides that loans will be in default at the end of the quarter following the quarter in which a payment was missed that was not repaid within that time period. If a participant defaults on a loan, the outstanding loan balance is reported to the IRS as a CalPERS 457 Plan distribution to the participant and is subject to income tax.

Please talk with your payroll team (or share this article with them) to emphasize how important it is to review loan feedback reports and process payroll deductions on time. If they haven’t received email notifications for a while, they should log into Sponsorweb once a month to make sure no reports have been missed. For help with accessing the reports or starting loan repayments, they can contact CalPERS_Plan_Admin@voya.com.

 

Every enrollment form
needs two signatures:
the participant’s
and the employer’s.

Tips For Trouble-Free CalPERS 457 Plan Enrollment

Here are some pointers for new and long-time human resources department staffers who enroll your agency’s employees in the CalPERS 457 Plan.

Whenever you have questions or need assistance with enrollment, please contact your plan administrator at CalPERS_Plan_Admin@voya.com.

How To Report Address Or Employment Changes

Keeping personal information updated for CalPERS 457 Plan participants helps ensure that account information and communications are received without delay.

Please remind your staff as well as active and former employees how to handle changes to a name, address or employment status.

Active participants submit changes to their names and addresses through you. As the employer, you are responsible for updating their names, addresses and employment status in the my|CalPERS system. CalPERS then sends the demographic updates to Voya Financial^®, the CalPERS 457 Plan record keeper. If you have questions about demographic updates in my|CalPERS, please call your CalPERS Supplemental Income Plans analyst toll free at 1-800-696-3907.

Terminated participants and retirees need to update their contact information by logging into my|CalPERS Member Self Service at my.calpers.ca.gov or by calling the CalPERS Member Benefits Service Line at 1-888-CalPERS (888-225-7377).

Bridging The Gap Webinar On June 8

Please encourage employees to join Bridging The Gap – A 457 Presentation on Friday, June 8, 2018 at 12 p.m. (Pacific Time). This webinar reviews various retirement income sources and explores approaches for bridging any potential gap.

There are two easy ways to register:

• Go to https://attendee.gotowebinar.com/register/5988743354388569603
  A confirmation will be sent by email with instructions for joining the webinar.
  
  
• Or visit gotowebinar.com and join webinar ID: 353-770-683. 

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).