Educating Retirees Who Return To Work

Does your agency hire CalPERS Supplemental Income 457 Plan participants who return to work as retired annuitants?

If so, they need your agency to explain how re-employment affects their potential CalPERS 457 Plan withdrawals. They may be unaware that going back to work makes them ineligible to take distributions from their CalPERS 457 Plan accounts associated with your agency. They must be completely separated from service from your agency to request distributions.

A retired annuitant who is a rehired employee may still request in-service withdrawals from the CalPERS 457 Plan, including transfers to another approved 457(b) plan provider, in-service transfers to purchase service credit, withdrawals from the rollover account, unforeseen emergency withdrawals and small account withdrawals less than $5,000 (subject to IRS requirements).

Please cover this information with each retired annuitant who applies for a position at your agency. Encourage them to read the retired annuitant requirements here before they accept employment.

How To Handle Three-Year Special 457(b) Catch-Ups  

Your employees will need your assistance to take advantage of the CalPERS Supplemental Income 457 Plan Three-Year Special 457(b) Catch-Up Provision.

To help you answer their questions, you can refer to the Catch-Up Guidelines. Here are key points to remember:

• Employees do not have to retire when they reach the Normal Retirement Age they designate on the Three-Year Special 457(b) Catch-Up Worksheet.
• The Normal Retirement Age defined in the 457(b) plan document and designated on the worksheet is only for the purpose of establishing the Three-Year Special 457(b) Catch-Up period and does not affect any of their other retirement benefits.
• The Three-Year Special 457(b) Catch-Up and the Age 50 Catch-Up cannot be used in the same calendar year. IRS rules permit such a participant to use the catch-up that permits the greatest contribution in that year.
• Employees who have not contributed up to the IRS limits in previous years may only catch up on unused deferrals they could have made, but did not make, in previous years by electing the Three-Year Special 457(b) Catch-Up option. They cannot use the Three-Year Special Catch-Up in the year designated as the year they will reach the elected normal retirement age.

For example, participants who designate 2020 as the year they will reach Normal Retirement Age could make Three-Year Special 457(b) Catch-Up contributions in three consecutive calendar years: 2017, 2018 and 2019. No Three-Year Special 457(b) Catch-Up contribution can be made in 2020, the designated year in which the participant would reach Normal Retirement Age. However, if such participants are at least 50 years old in 2020, they can use the Age 50+ Catch-Up option in 2020.

This catch-up option may only be used once in the employee’s entire employment career. The election is irrevocable.

Your role is vital in this process:

• Review the Three-Year Special 457(b) Catch-Up Worksheet that your employee fills out, including prior years of payroll history, for accuracy.
• Assist employees with calculating the amounts available to them under the Three-Year Special 457(b) Catch-Up. You may need to consult old payroll records if employees don’t have their past W-2s. 
• Sign the worksheet. If the employer’s signature is missing, the worksheet won’t be accepted for processing.
• Contact CalPERS_Plan_Admin@voya.com if you have questions.

If your agency has intranet pages regarding the CalPERS Supplemental Income 457 Plan, use the employer intranet template for automatic updates to information about the Three-Year Special 457(b) Catch-Up and other plan features.

September 8 Webinar Explains 457 Plan

Please encourage employees to join the Bridging the Gap – A 457 Presentation webinar on Friday, September 8, 2017 at 12 p.m. 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/1490930450611968514.
  A confirmation will be sent by e-mail with instructions for joining the webinar.
  
  
• Or visit gotowebinar.com and join webinar ID: 341-567-355. 

CalPERS Supplemental Income Plans (SIP) analysts provide valuable support and service, from answering questions to conducting Employer Service Reviews for your agency.  

	Sonia Bugarin Sonia Bugarin has been with CalPERS Income Plans since 2007. Sonia specializes in establishing new Business Partners Contracts. She enjoys collaborative efforts from interdivisional workgroups that improve the quality and performance of internal and external client/customer experiences. In her free time, she enjoys cycling and yoga.
	Diane Figone Diane Figone has been with CalPERS Supplemental Income Plans since 2008. As your assigned analyst, Diane specializes in my|CalPERS 457 Plan payroll support and enjoys communicating with employers on any issues that may arise. Prior to joining CalPERS, Diane worked for another state agency for four years and also in the private sector for many years. Diane has a passion for cooking and loves entertaining family and friends. She also enjoys traveling and gardening.
	Tsean Rowe Tsean Rowe has been with CalPERS Supplemental Income Plans since 2003. As your assigned analyst, Tsean specializes in payroll support and my|CalPERS support. Prior to joining CalPERS Supplemental Income Plans, Tsean did network maintenance and design in the private sector. When not working, Tsean enjoys camping, gardening and spending time with friends and family.
	Sarah Sullivan Sarah Sullivan has been with CalPERS Supplemental Income Plans since 2015. As your assigned analyst, Sarah specializes in providing payroll and my|CalPERS support to employers. Prior to joining CalPERS Supplemental Income Plans, Sarah worked in the Customer Service and Outreach Division of CalPERS, providing retirement assistance to members. In her free time, she enjoys spending time with friends and family and going on long walks with her energetic dog.

Assistance For 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 to assist you.

For CalPERS 457 Plan my|CalPERS assistance, email us or call 1-800-696-3907, Monday – Friday, 8 a.m. to 5 p.m. (Pacific Time).

To schedule onsite participant appointments or presentations, we encourage you to call your local Plan representative toll free, 1-888-713-8244 Monday – Friday, 8 a.m. – 5 p.m. (Pacific Time).