Helping your employees understand
the Roth contribution option

The CalPERS 457 Plan will add the Roth contribution option for all agencies effective January 1, 2024. The Roth contribution option gives your employees more flexibility when saving for retirement. It doesn’t change how much they can contribute or where they can invest it, but it does give them more control over when contributions and retirement income will be subject to federal income tax.

If your agency will have Roth added to the CalPERS 457 Plan as of January 1st, or you would like a refresher on the Roth contribution option for employees, CalPERS has resources to help you and them.

• The Roth Contribution Option Overview includes an overview of making Roth after-tax contributions and features a Frequently Asked Questions page to help participants understand how it works.
• The Roth Option Flyer provides a comparison of pre-tax vs. Roth after-tax saving to the CalPERS 457 Plan to help participants decide which option is right for them.
• The Roth Plan Option Brochure, also available in Spanish, provides a more detailed comparison of pre-tax vs. Roth after-tax saving, including profiles of employees who may prefer one option more than the other. It also includes a short questionnaire to help an employee determine if the Roth option may make sense.

Agency resources are also available to help you add Roth after-tax contributions to a CalPERS 457 Plan Payroll Report. Email us or call 800-696-3907 for help to be prepared to process Roth contributions starting January 1.

It is vital to let the CalPERS 457 Plan team know when there are changes to your personnel. Let’s work together to ensure that we have updated records of your agency’s points of contact, their roles, and how to reach them by phone and email.

Please report any changes to the CalPERS 457 Plan team as soon as possible by contacting:
calpers_457_plan@calpers.ca.gov

Helping your employees understand the Roth contribution option

Required Minimum Distribution changes for 2023

2023 year-end payroll reporting reminder

IRS announces contribution and catch-up limits for 2024

Provide your employees with education on their journey to and through retirement

Schedule a Plan Review

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2023 year-end
payroll reporting reminder

Please make sure that the payroll contributions your payroll team submits between late December 2023 and early January 2024 are applied to your participants’ CalPERS 457 Plan account for the correct tax year.

To ensure accuracy and avoid posting delays during the 2023 year-end payroll reporting period:

• Work closely with Voya Financial^®, who handles recordkeeping administration for the CalPERS 457 Plan.
  
• If the pay end date for the last payroll of 2023 is not the same tax year as your pay date (for example — your pay end date for the last payroll of the year is December 29, 2023, but your employees will not receive their checks for this payroll period until after January 1, 2024), It is imperative that you send Voya an email at CalPERS_Plan_Admin@voya.com. Please include your agency name and number (45****) in the email subject line.

Please submit payrolls that apply to different tax years on different days in myCalPERS. For example — if reporting the last payroll for 2023 and first for 2024, please report 2023 first and then report 2024 the following business day. If you have any questions about the year-end payroll submission process, please call the CalPERS 457 Employer Plan Line at 800-696-3907.

IRS announces contribution and catch-up limits for 2024

On November 1, 2023, the Internal Revenue Service issued Notice 2023-75 to announce the 2024 dollar limits for contributions to retirement savings vehicles like the CalPERS 457 Plan. Your employees will be able to save even more for retirement next year.

¹Age 50 and older before year-end. The Age 50+ Catch-up is only available to plans sponsored by a governmental employer.

² This special election catch-up applies to employees participating in an eligible governmental 457(b) deferred compensation that have elected the special catch-up available in the three years prior to the year of normal retirement age. If you are eligible for both the Age 50 and older catch-up and the special election catch-up under your 457(b) plan, IRS rules do not allow you to use both in the same calendar year. IRS rules permit you to use the catch-up that lets you contribute the greater amount.

What else do you need to know and how can you help your employees with this information?

• View the 2024 Cost of Living Adjustments for more information on the dollar limits set in Notice 2023-75.
• The CalPERS 457 Plan Employee Enrollment Kit will been updated for 2024. With higher contribution limits next year and the Roth contribution option available for all active participants, the CalPERS 457 Plan helps your employees complement their Social Security, pension benefits, and other personal savings to help reach their retirement goals.
• Bookmark the Employer Resource Center for all CalPERS 457 Plan resources, including participant materials and forms.
• Remind your participating employees that the Participant Change Authorization Form is now fillable, making it easier for them to update their contribution amount by completing the form online before printing for your signature and processing.
• If an employee has questions about their Special 457(b) Catch-up limit, please encourage them to schedule an appointment with their dedicated Account Manager to discuss designating a “Normal Retirement Age” and for assistance completing the Three-year Special 457(b) Catch-up Worksheet.

For any questions about the 2024 limits, please call your dedicated Account Manager at 888-713-8244.

Provide your employees with education on their journey to and through retirement

As 2024 approaches, make plans now to help provide your employees with the education and information they need to achieve a secure financial future. The dedicated Account Manager team for the CalPERS 457 Plan wants to help. Your Account Manager can deliver live onsite and virtual educational sessions all employees, even those who have not yet enrolled in the CalPERS 457 Plan.

Your Account Manager can present workshops on a variety of retirement planning topics. View the complete list and descriptions of CalPERS 457 Plan presentations that are now available for all employees and call your dedicated Account Manager at 888-713-8244 to learn more about the educational workshop series or to schedule a session.