The CalPERS 457 Savings Plan just announced it has lowered participation fees again (PDF), meaning public agency and school/community college employees spend less while saving more.
Thanks to the CalPERS 457 Savings Plan’s increasing popularity and related asset growth, the costs associated with investing in the plan’s many options have been reduced, with fees decreasing by as much as 50% since 2020.
“Every year, the plan brings on more agencies and new participants,” said CalPERS 457 Plan Program Manager Dave Saavedra. “As the plan grows, so does the pool of assets.”
The cost reductions allow you to keep more of your investment dollars working in your accounts, helping to accumulate more savings over time.
What’s the Plan?
The CalPERS 457 Plan is a voluntary savings program that lets you defer even small amounts, subject to annual limits, from your paycheck automatically on a pre-tax and/or Roth after-tax basis.
In addition, your contributions and their earnings can benefit from the power of tax-deferred compounding interest. This means you don’t pay income taxes on your pre-tax investments or earnings until you start taking withdrawals, usually in retirement. It also means federal tax-free withdrawals of your Roth after-tax contributions and any earnings when you retire.
If you’re not already part of the plan, you can sign up and start saving in just two steps:
- Check if your employer offers the CalPERS 457 Plan. Contact your personnel office or search for your employer in our CalPERS 457 Plan Participating Agencies list. You’re automatically eligible to participate as a salaried employee or contracted worker of a public agency, school district, or community college district that has adopted the CalPERS 457 Plan — even if you’re seasonal or part-time. Plus, if you’re already contributing to a 403(b) plan or are covered by CalSTRS, you can still participate in the CalPERS 457 Plan.
- Download the Participant Enrollment Kit (PDF). Review, fill out, and return the completed forms to your personnel/payroll department.
If your employer doesn’t currently participate in the CalPERS 457 Savings Plan, now’s a great time for them to sign up to offer this key employee benefit at no cost to them.
Find Out More
For more information and assistance, visit the CalPERS 457 Plan website or call the plan’s help line at (800) 260-0659. You can also learn more with the plan’s webinars.
In addition to the CalPERS 457 Plan, we offer deferred compensation plans to help all CalPERS members maximize retirement savings. And when it comes to retirement savings, time is money — check out our Deferred Compensation page today to save more for your retirement future.