1806 - Part-time, Seasonal, and Temporary Employees Retirement Program (PST) (Historical View)

** Effective: 2/8/2021 7:33:36 AM - 2/8/2021 7:36:12 AM **

Status: Active

Change Notes

Added PST Benefit Payment Booklet

Category

Savings Plus

Audience List

Synopsis

This policy

Introduction

Statement

Enrollment

Employees are enrolled in the PST Program by their Human Resources (HR) Office based on eligibility criteria. PST payroll deductions must post into the employee’s PST account as soon as practicable, but no later than 15 business days after the paycheck was issued that reflects the withholding. HR professionals are required to follow the PST reporting schedule established by Savings Plus to ensure timely deduction posting.

PST employees are also eligible to enroll and contribute to the 401(k) and 457(b) Plans. The 401(k) and 457(b) Plans provide the employee an opportunity to invest a portion of their salary on both a pre-tax and Roth basis and provide the employee the flexibility to select from an array of investment options. It is easy to enroll, employees can visit savingsplusnow.com or contact the Savings Plus Solutions Center.

Eligibility Criteria

PST Program participation is mandatory for employees who meet the eligibility requirements, unless an exclusion applies. Employees who are eligible for participation in the PST Program generally include the following, if excluded from membership in the California Public Employees' Retirement System (CalPERS):

The following employees are excluded from PST Program participation:

Contribution Rates

7.5 % of the employee’s pre-tax wages are deducted and deposited into a PST account with Savings Plus. PST accounts do not receive employer contributions or matching funds. The account balance consists of employee contributions and attributable earnings or losses. Note that operating expenses are netted out of the performance of the investments.

Investments

Savings Plus invests PST deductions in the Short-Term Investment Fund-PST (STIF-PST) which seeks to maximize total return consistent with capital preservation.

Account Statements

Savings Plus produces PST account statements twice per year (February and August). Employees may choose to view PST statements electronically by creating a user ID and profile on savingsplusnow.com or receive paper statements in the mail.

Plan Limit Coordination

The PST Program is subject to Internal Revenue Code section 457(b). This means that, if the employee elects to contribute to a 457(b) Plan (either with Savings Plus or another employer) in the same calendar year the employee participates in the PST Program, the normal contribution limit that applies to the 457(b) Plan for that year must be reduced by the amount the employee contributed to the PST Program in that year.

Retirement Eligibility Changes

HR professionals must discontinue PST deductions if employees participating in PST become eligible for CalPERS retirement benefits as a result of their state employment.

Account Closure

Separated employees are eligible to take a total distribution from their PST account after 90 days from the last transaction into or out of their PST account. Payments are reported to the Internal Revenue Service (IRS) as ordinary income.

A change in an employee’s retirement system eligibility is not a qualified distributable event under IRS regulations. This means that employees covered by the PST Program who become eligible for coverage under a state retirement system are not eligible to take a distribution from their PST account prior to separation. As described above, HR professionals must discontinue PST deductions when a PST participant becomes eligible for CalPERS. Savings Plus transfers the entire PST account balance to a 457(b) Plan account 75 days after a PST participant becomes eligible for CalPERS. If the employee already has a 457(b) Plan account with Savings Plus, Savings Plus will transfer the entire PST account balance to the existing account. If the employee does not have an existing 457(b) Plan account, Savings Plus will automatically establish one on behalf of the employee and transfer the entire PST account balance. Savings Plus will notify the employee about the transfer and provide information about how to begin contributing to the newly established 457(b) Plan account.

Administrative Fees

Savings Plus charges each employee’s department an administrative fee based on the amount necessary to offset the recordkeeping and administrative costs associated with the PST Program. The amount of the fee is reviewed annually.

Dormant Accounts

Employee PST accounts may be considered "unclaimed" or dormant if no payroll deductions go into or out of the account for two years. Once an account becomes dormant, Savings Plus will send a check in the amount of the account balance if it is less than $1,000. If the amount is a $1,000 or more, it is transferred to the State Controller's Office (SCO), Unclaimed Property Unit after three years from being considered dormant. To claim funds, employees may call SCO at (800) 992-4647 (residents of CA) and (916) 323-2827 (out-of-state or foreign). Employees may "Search for Unclaimed Property" online at sco.ca.gov.

Application

The PST Program is a mandatory program and there is no enrollment application. However, PST participants may enroll in the 401(k) and/or 457(b) Plan online at savingsplusnow.com.

Authorities

Resources

Forms

PML

Web Pages

Authorized By

Michelle Berklacich
Chief, Savings Plus Division

Contact Person

Savings Plus Service Center
To speak with a service center representative say "representative", or press 0., , Savings Plus
Phone: 855-616-4776
Email: AskSavingsPlus@nationwide.com

Superseded Policies

Not Applicable.