The costs associated with investing in the CalPERS 457 Plan’s investment fund options went down again

Effective April 1, the annual costs associated with investing in the CalPERS 457 Plan’s investment fund options were reduced by 0.02% to a range between 0.19% - 0.32%, depending on the investment. As a result of the new contract negotiated between CalPERS and Voya®, recordkeeping costs will only be applied towards the first $900,000 of a participant’s account balance as of the end of the quarter. Recordkeeping costs on the portion of the account balance in excess of $900,000 will be credited back to participant accounts and shown as a line item on quarterly statements from Voya.

The cost of investing in the CalPERS Target Retirement Funds has decreased by 55% since 2020. That means it’s never cost less for your employees to join the thousands of active and retired participants who have made the CalPERS 457 Plan a part of their journey to and through retirement. Read the Fee Reduction Notice for more information about the latest fee reduction and the fee for each investment in the CalPERS 457 Plan. For employees who are already participating in the Plan, the notice will be included in their July statement.

How important are fees when saving for retirement? Learn more about how the new reduced cost will help participants keep more invested dollars in their account by reading the Low Fees Flyer. We hope you will encourage all employees to consider participating in the CalPERS 457 Plan as a way for them to reach their retirement goals through voluntary savings.

Expanding the online enrollment options for the CalPERS 457 Plan

The CalPERS 457 Plan has completed implementing online enrollment for employees who want to join the Plan. While your agency may need time to incorporate online enrollment into your processes, we encourage you to work with CalPERS to implement it as soon as administratively feasible.

Online enrollment is now available for all eligible employees on both a pre-tax basis and Roth after-tax basis (if your agency can process Roth contributions from their payroll). Plan materials available through the Employer Resource Center have been updated to make it easy for your employees to enroll online when joining the CalPERS 457 Plan. Your employees can now:

> Enroll online.

Employees can enroll online by visiting calpers457.com and clicking Enroll Now at the top of the page. Online enrollment only takes about 5 minutes to complete. You can also provide the Online Enrollment Guide to assist your employees when navigating the enrollment screens.

> Complete the Participant Enrollment Kit.

Forms in the kit to enroll and designate a beneficiary will still be accepted until further notice. To enroll by form, employees must complete the forms in the Participant Enrollment Kit and return them to your agency for processing.  

Online enrollment will make it significantly easier for your employees to join the CalPERS 457 Plan and we are here to help it as easy for your agency to implement it as well. Learn more about how to access online enrollment information through Sponsor Web to complement what you receive through myCalPERS. If you have any questions about implementing online enrollment into your payroll process, email us or call 800-696-3907 weekdays between 8 a.m. – 5 p.m. PT for a CalPERS 457 Plan representative.

IMPORTANT REMINDER — Confirm your FICA status with CalPERS

In May, CalPERS emailed a survey to all agency contacts to help implement the SECURE 2.0 Act’s Roth catch-up contribution provision for all agencies that pay Social Security FICA taxes on behalf of employees. Thank you to everyone who has already responded, but we are still waiting to hear from some agencies.

If you or someone from your agency has already replied, no further action is required. Guidance will be provided in the coming months to help implement this change at your agency’s level.

For agencies that have yet to respond, click the link and complete our brief survey to notify CalPERS if your agency pays Social Security taxes on behalf of employees. For tracking purposes, we ask that all agencies complete the survey.

For questions about the SECURE 2.0 Act’s impact on your agency’s CalPERS 457 Plan, contact CalPERS by email or call 800-696-3907 weekdays between 8 a.m. – 5 p.m. PT

Loan reports require the attention of your payroll team

If your agency has adopted the CalPERS 457 Plan’s loan provision, it is your responsibility to monitor and give prompt attention to the Plan’s weekly loan feedback reports. Loan feedback reports are provided to you through Sponsor Web and include information about new loans issued or paid during the prior week.

Please encourage your payroll team to log into Sponsor Web regularly to make sure no loan feedback reports have been missed. This will help ensure that you are only processing repayments for outstanding loans through your payroll. For repayments received toward loans that have already been paid off in full, please note that the repayment amount will be returned directly to the participant.  

Learn more about retrieving a loan feedback file from Sponsor Web. If you have questions about the loan provision, contact us by email or call 800-696-3907 weekdays between 8 a.m. – 5 p.m. PT.

Processing beneficiary
changes for CalPERS 457
Plan participants

While unmarried CalPERS 457 Plan participants or married participants naming their spouse as the primary beneficiary can do so online by logging into their account at calpers.voya.com, we understand that they or your agency may prefer to instead complete a Beneficiary Designation Form. Forms received by your agency, though, must still be forwarded for processing within 90 days of when it was signed and dated. This is a critical part of the recordkeeping process to ensure that the wishes of your employees are followed in the event of their death.

When you receive a Beneficiary Designation Form, please make it a priority to forward a copy to Voya for processing. You can email the form or fax it to 888-228-6185. Thank you for your attention to this important matter.

Employees can simplify their financial life with the CalPERS 457 Plan

CalPERS 457 Plan participants can transfer retirement account balances from former employers to the Plan. Consolidating accounts can help them stay on top of their finances by investing consistently, paying the same fees, and tracking their retirement progress in one place. Learn more by reading the Account Consolidation Overview and have your employees call Voya’s Account Consolidation Team at 866-865-2660 to determine if their former employer’s retirement account can be transferred to the CalPERS 457 Plan.

Schedule a CalPERS 457 Plan review to
help satisfy your fiduciary responsibility

A review of your agency’s CalPERS 457 Plan is a great way to stay engaged with how employees are incorporating the Plan on the journey to and through retirement. Plan reviews can be held at a date and time that’s most convenient for you. Staying informed can also help you satisfy your fiduciary responsibility to oversee the CalPERS 457 Plan and explore additional ways that your employees can achieve their retirement goals.

Email Dave Saavedra or call 916-795-3908 today to arrange a review.

Contact Us

CalPERS 457 Plan representatives are available for myCalPERS and payroll assistance. Email us or call 800-696-3907, Monday – Friday, 8 a.m. – 5 p.m. (Pacific Time).