A new catch-up contribution option is now available for participants aged 60-63

On November 1, 2024, the IRS issued Notice 2024-80 to announce the 2025 dollar limits for retirement saving vehicles like the CalPERS 457 Plan. The limits include a new catch-up provision for participants aged 60-63 in 2025.

The new super catch-up provision may require payroll system modifications for your agency. Here are the key details of the limits for 2025:

This is a great opportunity for those nearing retirement to maximize their savings and take advantage of the increased contribution limits. CalPERS 457 Plan participants aged 60-63 will be notified by mail about the new super catch-up contribution limit. If you receive questions from your participating employees about increasing their CalPERS 457 Plan contributions, please direct them to complete a Participant Change Authorization Form and return it as instructed.

We are here to help you implement this new catch-up contribution. For payroll and myCalPERS support, call the CalPERS 457 Employer Plan Line at 800-696-3907. For employee questions about their 2025 contribution limit, please encourage them to schedule an appointment with their dedicated Account Manager by calling 888-713-8244 or visiting calpers457.timetap.com.

The CalPERS 457 Plan continues to work toward making online enrollment the preferred option for employees who want to join the Plan. 2025 will be a transition period for incorporating online enrollment into your agency’s processes, but we encourage you to consider implementing it as soon as administratively feasible.

Online enrollment is now available for all eligible employees on a pre-tax basis only. Plan materials available through the Employer Resource Center have been updated to educate your employees on their choices when enrolling in the CalPERS 457 Plan. To join the Plan, your employees can now:

The enrollment process remains unchanged when joining the CalPERS 457 Plan to save on a Roth after-tax basis or a combination of pre-tax and Roth. Employees must complete the forms in the Participant Enrollment Kit and return them to your agency for processing.   

Functionality to enroll online on a Roth after-tax saving basis is expected to be available later this year. Look for updates from CalPERS as our online enrollment capabilities expand. 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.

Watch for your agency’s 2024 CalPERS 457 Plan Year-end Summary

The CalPERS 457 Plan continues to be a valuable retirement benefit for more than 800 public agency and school employers. This quarter, contacts for all agencies and school employers with at least one employee participating in the CalPERS 457 Plan will receive an email summarizing the value of their Plan as of December 31, 2024. This annual email from CalPERS will detail your 457 Plan participation rate, total contributions and assets, and more. We encourage you to review the email and save it for your records to help satisfy your fiduciary responsibility.

For questions about your results or to create a plan to help increase employee engagement and participation in 2025, contact CalPERS by email at CalPERS_457_Plan@calpers.ca.gov or call 800-696-3907.

Catch-up
contributions
are changing
in 2026

This is a mandatory provision from the SECURE 2.0 Act that impacts all plans that offer catch-up contributions. The three-year Special 457 Catch-up provision, though, is not impacted by the SECURE 2.0 Act. Delaying the implementation of the Roth catch-up contribution provision until 2026 allows for an administrative transition period that will help agencies and taxpayers transition smoothly to this new Roth catch-up requirement.

CalPERS will provide you with more information and resources in the coming months to help you prepare for this SECURE 2.0 Act change. For questions about the SECURE 2.0 Act’s impact on the CalPERS 457 Plan, contact CalPERS by email at CalPERS_457_Plan@calpers.ca.gov or call 800-696-3907.

Help your employees thrive in 2025 with education from your dedicated Account Manager

Studies show that most employees need help with more than just retirement planning. They also look to their employer for education to help them save more, spend better, manage debt, pay down loans, and improve their overall financial wellness. Your dedicated Account Manager* is available to help educate your employees about saving for retirement, managing financial priorities, and achieving personal financial goals. We welcome the opportunity to partner with you in 2025.

To discuss hosting your dedicated 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).

Start 2025 by requesting 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 start the year. We can meet at a date and time that’s most convenient for you. Staying informed can help you satisfy your fiduciary responsibility to oversee the CalPERS 457 Plan at your agency, plus explore additional ways that we can help your employees 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).