5 Reasons to Add the Roth 457 Option

If your agency is on the lookout for ways to boost participation in your CalPERS Supplemental Income 457 Plan, adding the Roth 457 Plan option could help.

Here are five reasons to take that step soon:

• It’s another valuable employee benefit.
• There’s no cost to your agency.
• Gives participants two choices for making contributions instead of just one.
• Offers the flexibility to create a future source of tax-free retirement income.
• Attractive to any participant, especially younger employees in lower tax brackets.

Roth contributions are deducted from the employees’ payroll, then processed and reported in my|CalPERS, just like traditional pre-tax contributions. Taxes are withheld from Roth contributions before they are invested in the CalPERS 457 Plan account. The contributions are not tax-deductible. The advantage is that in the future, participants may be able to withdraw the money tax-free, as long as they keep the money in the Roth account for at least a five-year period, are age 59½ or older, and have a triggering event (severance from employment, or disability, or death).

Find out more
• Review the payroll guide to new Roth adoptions.
• Read the Roth brochure and the employers special edition.
• Call us toll free 1-800-696-3907 or send us an email.

How to get started
Complete and return the Roth Adoption Form to CalPERS. Once CalPERS approves your Roth adoption request, the adoption agreement will become effective no earlier than the calendar month following the month in which the agreement is made. Your participants may elect to make Roth after-tax contributions as soon as the provision is activated.

Educational presentations available
Once the Roth provision is activated, you may request onsite presentations to educate your participants about this new choice. Call 1-888-713-8244 or contact your local CalPERS 457 Account Manager to schedule a Roth 457 presentation at your location.

New Repayment Option for Certain Borrowers

Some participants who borrow from their CalPERS 457 Plan accounts are allowed to make monthly ACH debit repayments for the term of their loans by working directly with Voya^®.

To qualify, a participant must either be terminated from service or an active employee who decides to pay the loan in full.

However, if terminated employees take a distribution from their CalPERS 457 Plan accounts, the ACH repayment feature ends. The loan will be in default unless the outstanding balance is repaid in full immediately.

Active employees with loan balances will continue to make regular repayments via payroll deduction.

Your employees who have questions about their loans should contact Voya^® customer service toll free at 1-800-260-0659 weekdays 8 a.m. – 5 p.m. (Pacific Time).

Voya Handles Unforeseen Emergency Withdrawals

Your agency no longer has to deal with employee requests for Unforeseen Emergency Withdrawals (UEWs) from their CalPERS 457 Plan accounts.

CalPERS has delegated the UEW application and approval process to Voya^® who will work directly with your participants. This change was made through an amendment and restatement of the CalPERS 457 Plan Document that went into effect in March.

Employees can download the UEW application at calpers.voya.com. If they have questions or need assistance, they should contact Voya^® toll free at 1-800-260-0659 weekdays 8 a.m. – 5 p.m. (Pacific Time).

Ask for a CalPERS 457 Plan Review

A review of your agency’s CalPERS Supplemental Income 457 Plan is available at your request. Staying informed can help you satisfy your fiduciary responsibility to oversee the CalPERS 457 Plan at your agency. Email Dave Saavedra or call 1-916-795-3908 to arrange a review in person or as a written document.

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).