Savings Plus Program
Savings Plus is a voluntary program offered by The State of California through CalHR (not CSU) and administered by Nationwide Retirement Solutions. This program allows eligible state and CSU employees to save toward retirement by investing pre-tax contributions in tax-deferred investments, via two deferred compensation plans: a 401(k) and a 457. These contributions are made through payroll deductions, prior to federal and state taxes being calculated. There is also a Roth (after-tax) 401(k) plan available.
Currently, the plan contribution limits that apply to Savings Plus are prescribed under Internal Revenue Code (IRC) Sections 401(k) and 457.
Contributions to a 457 plan are not offset by contributions to a 403(b), or 401(k) plan. Currently, a participant could elect to contribute up to $22,500 to a 403(b), or 401(k) plan AND up to $22,500 to a 457 plan, for a total contribution of up to $45,000.
In order for eligible employees to take advantage of the tax savings via payroll deduction, an account must be established with Savings Plus.
For additional information regarding this program, including maximum contribution amounts, catch-up allowances, and administration of the Savings Plus program, please contact their office at (855) 616-4776, open weekdays from 5am to 8pm PT, or refer to the Savings Plus website.
With the exception of the following, all employees (including rehired annuitants and FERP participants) are eligible to participate in the Savings Plus program:
- Part-time, seasonal or temporary employees who are contributing mandatorily to the PST (Part-time, Seasonal, Temporary) Retirement Plan are not eligible to contribute into the 401k plan but are able to contribute into the 457 plan.
Effective Date of Coverage
All plan participants must complete an online application in order to start payroll deductions toward an SPP account.
Once the account is established, plan participants can initiate payroll deductions via SPP's Voice Response Unit or Website. Transactions made as late as 1 p.m. on the last business day of the month will be processed with the next pay period. For example, payroll deductions initiated on August 30, will be processed during the September pay period, and the contribution will be deducted from the October 1 pay warrant.
- Know Your Retirement Benefits
- Join a group education webinar to increase your financial knowledge and get to know your Savings Plus benefit plan, https://victortawn.myretirementappt.com
- Schedule an individual phone meeting with your regional designated Savings Plus specialist, https://victortawn.myretirementappt.com
What are your California state department employee peers saying about Savings Plus? Click on hyperlink below to watch a testimonial short video