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State Employee 401(k) Plan and 457(b) Plan
Savings Plus is the name of the 401(k) Plan and 457(b) Plan available to most State of California employees.
With Savings Plus, you can build a retirement savings account. Automatic payroll deductions from your paycheck are invested in funds you select from the Savings Plus portfolio menu. Money from your paycheck that you invest this way is not taxed until you eventually withdraw it, generally during retirement.
Visit savingsplusnow.com to learn more about Savings Plus.
Lump Sum Separation Pay
Transfer Your Lump Sum Separation Pay to Your Savings Plus 401(k) Plan Or 457(b) Plan
Do you plan to retire before the end of the year? Do you have unused leave credit? Normally, when you retire, you receive a lump sum payment for the value of your unused leave. Did you know you can defer this payment - and the associated tax - by transferring your lump sum payment to a Savings Plus 401(k) or 457(b) account? You will avoid paying taxes on the funds until withdrawn.
Retire this year - defer your lump sum payment into the next year
If you separate between November 1, and December 31, you can transfer up to the maximum contribution limit for the current tax year and for the following tax year. This may help you avoid a large tax bill.
Take advantage of this tax benefit - see how it can work for you
Submit your completed Lump Sum Separation Pay Form to your employer. Your lump sum paperwork must be officially submitted 5 working days prior to separation; however, Personnel Offices request you submit your paperwork 30 days prior to separation of service in order to accommodate necessary discussion that may impact timely completion of the paperwork.
Rehired Annuitants
Rehired Annuitants May Contribute to Savings Plus
State and CSU employees who separate and return to work as a "Rehired Annuitant" may contribute to Savings Plus. (The term "rehired" annuitant, is also known as "retired" annuitant among State employees.)
As a working retiree, you understand firsthand the importance of financial security during retirement. It is not too late to act.
*Please note: effective April 2024, the ARP program is closed. If you believe you may be impacted by the ARP program, please contact CalPERS at (888)-225-7377.
Contact Savings Plus
Contact Savings Plus for information about the plan.
