Alternate Retirement Program (ARP)
Savings Plus administered the Alternate Retirement Program, or ARP, until May 2024.
ARP was a retirement savings program in which certain State employees were automatically enrolled between August 11, 2004, and June 30, 2013 for their first two years of employment with the State of California. ARP provided up to two years of retirement savings in place of retirement service credit under the California Public Employees' Retirement System (CalPERS.) Even though employees did not earn retirement service credit with CalPERS during this period, employees still received CalPERS membership and were entitled to all other CalPERS benefits.
Note: Employees who became CalPERS eligible on or after July 1, 2013 were not subject to ARP. This included PST employees who were employed prior to July 1, 2013 and became CalPERS eligible on or after July 1, 2013.
Mandatory Coverage
Employees enrolled in ARP were covered by Social Security. New State miscellaneous and industrial employees hired between August 11, 2004 and June 30, 2013 were enrolled into ARP for 24 months from the date the employee first qualified for CalPERS membership (typically the employee's original hire date).
A separation did not alter the 24 month period. If an employee separated and returned to a miscellaneous or industrial position within the 24 months of their enrollment to ARP, they went back into ARP to complete their 24 month period.
Employees were covered by ARP if they met all the following conditions:
- First hired by the State between August 11, 2004 and June 30, 2013, and
- Qualified for CalPERS membership as a State Miscellaneous or State Industrial category; and
- Met the definition of "State employee" under GC Section 19815.
ARP Phases
ARP had three phases that spanned a four year period:
PHASE I
Employees contributed to ARP for the first 24 months from CalPERS eligibility and ARP enrollment. Employees did not earn CalPERS retirement service credit during this time; however, they were CalPERS members and entitled to all benefits such as health insurance.
PHASE II
Beginning at month 25, employees stopped contributing to their ARP account and began contributing to a CalPERS retirement account (deduction amount was the same.)
PHASE III
Employees had a three-month period beginning on the first day of month 47 through the last day of month 49 to decide what happened to their ARP funds. Most employees had three options:
1. Transfer ARP to CalPERS to receive service credit for the time worked during Phase 1; or,
2. Take a lump-sum distribution of their ARP account, or
3. Transfer their ARP funds to a Savings Plus 401(k) account.
Employees received a postcard at month 45, notifying them of their approaching election period (Phase III). Just prior to their election period, they received their ARP Payout Election Notification Letter in the mail. The letter included their election due date, details on their payout options, and instructions on how to make their election.
Employees with question about the impact of ARP to their retirement service credit can log into their MyCalPERS or contact their personnel office for service credit details.
