1805 - Alternate Retirement Program (ARP)

Category

Savings Plus

Audience List

  • Personnel Officers
  • Personnel Transactions Staff
  • Personnel Transactions Supervisors

Synopsis

This policy

  • provides information about ARP corrections.

Introduction

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.

Statement

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.

Application

Not Applicable.

Authorities

Resources

PML

  • 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

Web Pages

Contact Person

Ronnie Garcia
Project Manager, Savings Plus
Phone: 916-324-3444
Fax: 916-327-1885
Email: ronnie.garcia@calhr.ca.gov

Authorized By

Michelle Berklacich
Chief, Savings Plus Division

History

View History

Table of Contents

1000 - Equal Employment Opportunity

1100 - Selection

1200 - Appointments

1300 - Exempt Employees

1400 - Benefits and Insurance

1500 - Work Schedules

1600 - Third Party Pre-Tax Parking

1700 - Compensation

1800 - Savings Plus

1900 - Bona Fide Associations

2000 - Collective Bargaining

2100 - Leave

2200 - Travel/Relocation

2300 - State Owned Housing

2400 - Employee Recognition

2500 - Discipline

2600 - Layoffs

2700 - Retirement

2800 - Training

2900 - Workforce Planning

3000 - Examination and Hiring

3100 - Drug-Free Workplace