MARCH    |   2019
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Add the New Roth Option for Your CalPERS 457 Plan

The new Roth 457 contribution option can now be added to the CalPERS Supplemental Income 457 Plan. If your agency is interested in adding this option for your CalPERS plan, please complete the Roth Adoption Form and return it to CalPERS for processing.

Once CalPERS has processed your adoption request, your employees will be able to elect or change to designated Roth contributions that are automatically deducted from their payroll like elective pre-tax contributions are treated.

About the Roth Option  |  Why Add the Roth Option?  |  Updated Forms & Resources  |  Ask for a Plan Review

About the Roth Option

By choosing this option, your employees can make after-tax contributions into their CalPERS 457 Plan. The advantage is, in the future, they can withdraw the money tax-free if the money is kept in the Roth account for at least a five-year taxable period, are age 59½ or older and have a triggering event (severance from employment, reach age 70½, disability or death).

Employees whose agencies add the Roth option can make both traditional pre-tax and Roth after-tax contributions to the CalPERS 457 Plan. The investments, services, tools and access to licensed experienced local representatives are the same for both types of accounts.

  Why Add the
Roth Option?
It’s a valuable employee benefit option that you can add at no additional cost to your agency
The Roth option may encourage greater Plan participation than the pre-tax option alone, especially for employees early in their careers and in a relatively low income tax bracket
Like pre-tax contributions, employees can increase, decrease or stop Roth contributions at any time

Updated Employee Forms and Resources are Now Available

Updated forms with new Roth 457 sections are now available on the Employer Resources Center at calpers-sip.com. This includes the Employee New Enrollment Form for new participants joining the plan and the Participant Change Authorization Form for current participants to change to or add a Roth contribution to their payroll deductions.

In addition to the updated forms, informational pieces have been developed to help educate employees on the Roth option and determine if it’s appropriate for their retirement saving strategy.

Now available at calpers-sip.com:
• Roth option FAQ
• Roth option overview flyer
• Roth option brochure

Ask for a Plan Review to Discuss the Roth Option

A review of your agency’s CalPERS Supplemental Income 457 Plan is available at your request. We can help you understand your fiduciary responsibility in administering the CalPERS 457 Plan at your agency and discuss adding the Roth option for your Plan if you have questions or are still unsure. Email Dave Saavedra or call 1-916-795-3908 to arrange a review in person or as a written document.

 

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Plan administration services provided by Voya Institutional Plan Services, LLC. 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).

This newsletter was prepared by Voya Financial®. Articles by Voya are not intended to provide tax or investment advice. Any opinions, advice, statements, services, offers or other information or content expressed or made available herein has not been independently verified by the California Public Employees’ Retirement System (CalPERS), nor does it necessarily state or reflect the views of CalPERS. Reference herein to any specific commercial products, processor service by trade name, trademark, manufacturer or otherwise does not necessarily constitute or imply its endorsement, recommendation or favoring by CalPERS. © 2018 Voya Services Company. All rights reserved

 

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