1804 - Rehired Annuitants

Category

Savings Plus

Audience List

• Employee Benefits Officers
• Personnel Officers
• Personnel Transactions Staff
• Personnel Transactions Supervisors

Synopsis

This policy

• Provides information about Rehired Annuitants.

Introduction

State and CSU employees who separate and return to service as “Rehired Annuitants” can contribute to their existing Savings Plus 401(k) and 457 Plan accounts or establish a new account.  (The term “rehired” annuitant, used in the CSU system, is also known as “retired” annuitant among State employees.)

Statement

To Qualify for this State Benefit Rehired Annuitants must be:

• Paid via a State Payroll System;
• Not currently receiving periodic distributions from a Savings Plus account.

To participate, Rehired Annuitants must submit an Enrollment Agreement to start or restart contributions.  This requirement also applies to employees that have an existing account.

Contributions post to the allocation on record.  If no allocation on record exists, contributions post to aTarget Date Fund based upon the employee’s date of birth.  Other investment options are available once the account is established.  A monthly administrative fee of $1.50 is assessed against each plan account.

Rehired annuitants are not eligible for loans, hardship withdrawals, unforeseen emergencies, 457 Catch-Up, or periodic distributions.  However, they may request a Direct Payment (a 10% Federal tax penalty may apply to payments from a 401(k) plan account.)

Application

Enroll online at www.savingsplusnow.com.

Authorities

• 401(k) Plan Document
• 457(b) Plan Document
• Government Code section 19993
• Government Code section 19999.5
• Internal Revenue Code section 401(k)
• Internal Revenue Code section 457(b)

Resources

PML

• PML 2009-021: PML 2009-021 - 4/13/2009 - Rehired/Retired Annuitant Eligibility to Participate in Savings Plus

Web Pages

• Savings Plus Enrollment Booklet: For State Employees who wish to contribute to a Savings Plus account
• Savings Plus Now: Savings Plus is the 401(k) or 457(b) plan available to most State of California employees

Authorized By

Michelle Berklacich
Chief, Savings Plus Division

Contact Person

Savings Plus Training
Training , Savings Plus
Phone: 855-616-4776
Email: SPPtraining@calhr.ca.gov

Superseded Policies

History

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