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.

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.

Employees 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.

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).

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.

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).