Financial Planning

 


Savings Plus Program (401k) & Deferred Compensation Plans (457)

Savings Plus offers two deferred compensation plans for California state employees: a 401(k) Thrift Plan and a 457 Deferred Compensation Plan. The benefits of these programs include:

  • Lower tax withholding through pre-tax deferrals
  • Easy investing through payroll deductions
  • Numerous investment options and the ease of daily exchanges among them
  • Flexibility in changing future deferrals
  • Various benefit payment options

Who Is Eligible For Savings Plus?

Employees who are contributing members to the California Public Employees Retirement System (CalPERS) are eligible to participate with the Savings Plus Program.

Beginning in April 2009, CSU employees who separate and return to service as "Rehired Annuitants" can contribute to the Savings Plus Program. If you are a Rehired Annuitant, you qualify for this benefit if you are: Paid via a State Payroll System; Separated for at least 60 days; and Not currently receiving any periodic payment distributions from a Savings Plus Program account.

How To Request Information Or Join

For enrollment information or to request an enrollment kit, please call the Savings Plus Program at (916) 322-5070 or send a written request to the Department of Personnel Administration, Savings Plus Program Office, 1515 "S" Street, North Building, Suite 108, Sacramento, CA 95814-7243.

 


TSA 403 (b) Program
 

The CSU 403(b) Tax Sheltered Annuity (TSA) Program is a voluntary program that allows eligible CSU employees to save toward retirement by investing pre-tax contributions in tax-deferred investments in either annuities or mutual funds, under Internal Revenue Code (IRC) Section 403(b). TSA contributions are made solely by the employee through payroll deductions, prior to federal and state taxes being calculated. Consequently, these pre-tax contributions result in reduced taxable income for participating employees.
 

All TSA plans are currently administered through Fidelity. For enrollment, contribution changes and more information, please go to:

https://nb.fidelity.com/public/nb/calstate/home

 

Eligibility For TSA 403(b) & Mutual Fund Participation:

  • The minimum monthly 403(b) contribution is $15 per month. Currently, some 403(b) vendors require a monthly contribution greater than $15, so this level of contribution may limit the employee's choice of vendors.
  • With the exception of certain student classifications, all employees are eligible to participate in the 403(b) program, including rehired annuitants (regardless of age).
  • The following student classifications are ineligible for 403(b) participation:
    • Resident Assistant (class code 1869)
    • Student Assistant (class code 1870)
    • Student Trainee, On-Campus Work Study (class code 1871)
    • Student Trainee, Off-Campus Work Study (class code 1872)
    • Graduate Assistant (class code 2355)

Enrollment

Enrollments are now done on-line.  Please visit the fidelity CSU site to enroll and change your monthly contribution amounts,  https://nb.fidelity.com/public/nb/calstate/home

Roll-over requests

All forms requiring employer signature are to be sent to the Chancellor's Office for approval pursuant to the CSU TSA plan document and IRS guidelines.
All documents requiring an employer signature are to be mailed with a self-addressed, stamped envelope to the following address:

Pamela Chapin
Chancellor's Office, The California State University
401 Golden Shore, 4th Floor
Long Beach, Ca 90802

Please note that faxed documents are not accepted. The turnaround goal is five (5) business days. Individual campus representatives are not allowed to sign roll-over requests.

Maximum Annual Contribution (General Limit)

For the 2009 tax year, the lesser of the following two limits apply to determine the maximum contribution to a 403(b) plan:

Internal Revenue Code (IRC) 402 (g) Elective Deferral Limit- $16,500
Internal Revenue Code (IRC) 415 Percentage of Compensation Limit- 100% of adjusted gross salary

Over Age 50 Catch-Up Provision

IRC Section 414(v), added under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), created a new catch-up provision available to individuals age 50 or older before the end of the plan year, and allows them to make additional pre-tax elective deferrals to a 403(b) plan over and above the general contribution limits, without regard to previous contributions. This new catch-up rule does not require a calculation worksheet. The maximum amount of this new additional contribution is $5,500 in 2009 for a total of $22,000.

15-Year Rule Catch-Up Provision

IRC Section 402(g)(7) catch-up election permits some long-term employees to contribute an additional $3,000 during the year, for up to five years. If you wish to contribute up to this amount you must demonstrate your eligibility for the catch-up rule by completing a Worksheet to Determine Eligibility for 403(b) Contributions over $16,500. This worksheet must be completed every year you plan to contribute over the limit.

Internal Revenue Service (IRS) Publications 553 and 571 provide additional information, these publications are available on the IRS's web site address at: http://www.irs.gov.

ADDITIONAL INFORMATION AND FORMS

403 (b)/457/401k Comparison Chart

Worksheet to Determine Eligibility for 403(b) Contributions over $16,500