1805 - Alternate Retirement Program (ARP)
- Personnel Officers
- Personnel Transactions Staff
- Personnel Transactions Supervisors
- provides information about ARP corrections.
The Alternate Retirement Program, or ARP, is a retirement savings program that certain state employees first hired into state service between 8/11/04 to 6/30/13 were automatically enrolled in for two years from their initial hire date (or when they qualified for CalPERS membership.)
It is an "alternate" retirement program because it provides two years of retirement savings in lieu of two years of retirement service credit under CalPERS. Even though the employee did not earn retirement service credit with CalPERS during this period, they are still a CalPERS member. Savings Plus (part of the California Department of Human Resources) administers the ARP.
Pursuant to California Government Code sections 20281.5 and 19999.3(g), the ARP was closed to new employees effective July 1, 2013, and is closed to payroll deductions for hours worked on or after July 1, 2015. However, departments should continue to process retroactive corrections in accordance with this policy for time worked prior to July 1, 2015. Refer to PML 2013-018 for additional information.
Employees with an ARP balance will continue to follow the normal ARP process and will be notified of their ARP payout options prior to their three-month election period (months 47 – 49 following their initial ARP enrollment). Savings Plus continues to issue ARP annual statements for all accounts with a balance.
Use the ARP Eligibility Worksheet to help determine ARP eligibility and proper ARP retirement code.
Savings Plus charges the department a $4.80 per ARP deduction including corrections, regardless of whether the transaction involves a positive or negative amount.
Separated employees are eligible to take a distribution of their ARP account balance 90 days after the posting date of their last ARP transaction. If a payout option is not selected during the election period, the ARP account is subject to a monthly administrative fee. Funds left in ARP for three years after the employees last contribution posting will transfer to the State Controller’s Office (SCO) Unclaimed Property Unit.
For California Public Employees’ Retirement System (CalPERS) eligibility and benefit information contact CalPERS at (888) 225-7377. Questions related to Personnel Action Request (PAR) documentation, contact SCO’s Customer Contact Center at (916) 372-7200.
- ARP Plan Document
- Assembly Bill No. 340, chapter 296
- Government Code section 19999.3(g)
- Government Code section 20281.5
- Internal Revenue Code section 401(k)
- PML 2005-026: PML 2005-026 - 8/16/2005 - Alternate Retirement Program (ARP) Statements
- PML 2006-017: PML 2006-017 - 7/24/2006 - Distribution of Alternate Retirement Program (ARP) Accounts for Separated Employees
- PML 2007-015: PML 2007-015 - 5/2/2007 - Alternate Retirement Program Administrative Fee
- PML 2007-025: PML 2007-025 - 9/19/2007 - Alternate Retirement Program (ARP)
- PML 2013-018: Alternate Retirement Program Termination
- PML 2015-021: PML 2015-021 - 7/27/2015 - Alternate Retirement Program Termination
- ARP Eligibility Worksheet: ARP Eligibility Worksheet Web Page
- ARP Fact Sheet: Alternate Retirement Program Fact Sheet
- Savings Plus Now: Savings Plus is the 401(k) or 457(b) plan available to most State of California employees
Project Manager, Savings Plus
Chief, Savings Plus Division