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Benefits Administration

Retirement and Savings Programs

"Savings PLUS" Program

Note: Employees should consult with their own tax advisors to make sure they are within the limitations set for by the IRS.

What is the Savings Plus Program?

The Savings Plus Plan (SPP) is a voluntary program which allows eligible state and CSU employees to save toward retirement by investing pre-tax contributions. These tax-deferred investment are offered through two deferred compensation plans: a Thrift Plan (IRC 401k)) and a Deferred Compensation Plan (IRC 457). These contributions are made through only through payroll deductions, prior to federal and state taxes being calculated and withheld.

Who is eligible?

457 Deferred Compensation Plan (DCA):

State Employees (Rehired/Retired Annuitants Not Eligible)

401(k) Thrift Plan:

State Employees (Rehired/Retired Annuitants Not Eligible)

Generally, all employees are eligible to participate in Savings Plus programs with the exception of:

What is the minimum contribution allowed?

457b Deferred Compensation Plan (DCA):

$50 Per Month Per Plan

401(k) Thrift Plan:

$50 Per Month Per Plan

What is the maximum contribution allowed?

457 Deferred Compensation Plan (DCA):

Employees can defer $15,500 for the 2008 tax year. There is also a "catch-up" and age based provision which allows eligible participants to make additional contributions.  This amount is determined on an individual basis.  

401(k) Thrift Plan:

Employees can defer $15,500 for the 2008 tax year.  There is also an age-based deferral. There is no "catch-up" provision. 

The maximum elective deferral limit will increase incrementally on an annual basis, as follows:

TAX YEAR

LIMIT

2007

$15,500

2008

$15,500

Additionally, contributions to a 457 plan no longer have to be offset by contributions to a 403(b) or 401(k) plan. For example, for tax year 2008, a participant could elect to contribute up to $15,500 to a 403(b) or 401(k) plan AND up to $15,500 to a 457 plan, for a total contribution of up to $31,000.

If employee participates in the TSA (403b) and/or the the 401(k)Thrift Plan and the Deferred Compensation (457), the accumulated maximum for all plans cannot exceed $31,000. (For example: for the tax year 2008, an employee could elect to contribute $15,500 to a 401(k) or 403(b) plan, and $15,500 to a 457 plan.)

Each employee is responsible for their own calculations and to make sure the IRS limits are not exceeded.

Who provides the service?

The Savings Plus Program Office in Sacramento. To contact them, call (916) 322-5070 or (866) 566-4777 or visit http://www.sppforu.com.

How do I see the options offered by the Savings Plus Program?

457 Deferred Compensation Plan (DCA):

Information must be obtained directly from the Saving Plus Program.

401(k) Thrift Plan:

Information must be obtained directly from the Savings Plus Program.

What are the differences between a 457 Deferred Compensation Plan (DCA) and a 401(k) Thrift Plan?

A comparison chart is available at https://www.nrsservicecenter.com. Choose "Comparison Chart."

How do I enroll in a Savings Plus plan?

Go to www.sppforu.com and click under sign-up. Follow the step-by-step online enrollment instructions to guide you through the process.

What is the Pay Center I need to enter on the enrollment form?

Enter SCO as the pay center on the enrollment form.

What are the account fees?

Fees collected from participant accounts provide funding to administer the Savings Plus Program. Savings Plus charges each account 401(k) and 457 and administrative fee. For account fees, go to: the SPP Web Site.

How do I make changes to my contribution amount or investment choices?

The employee can change companies and/or dollar amounts by phone through SPP's Voice Response System, 1-866-566-4777, or online by pressing enter.

What is a tax year ?

Tax years for CSUN employees are calculated by Pay Periods:  December 1 through November 30.

Can I roll over funds from another plan?

 If you have funds with a prior employer’s retirement plan in a 401(k) or a 457 Plan you may want to consider a rollover. For more information, go to: SPP Web Site.

Can I withdraw my funds early?

  The IRS does recognize certain circumstances when early withdraws are permitted. For more information, go to: SPP Web Site.

May I take out a loan against my Savings Plus plan?

You may borrow against your 401(k) and/or 457 Plan accounts. Two types of loans are available. For more information, SPP Web Site.

May I use these funds to purchase CalPERS Service Credit?

Savings Plus allows you to use funds in your 401(k) and/or 457 account to purchase CalPERS Service Credit. For more information, go to: SPP Web Site.

When will I receive statements?

You will receive quarterly statements in the mail. For more information,go to: SPP Web Site.

What are my options when leaving employment?

You have several options when leaving employment, depending on your individual needs. To review your options, go to: SPP Web Site.

How can I save taxes on my unused vacation payout?

When you retire or separate, you may transfer unused vacation pay to your Savings Plus 401(k) and/or 457 accounts. You may also transfer it to a 403 (b) plan. Normally, when you cash out unused vacation credits the payment is taxable, but if you transfer it to your Saving Plus account you won’t owe taxes until you withdraw the funds.

If you would like to proceed with the transfer, refer to: SPP Web Site and click on "Transfer Unused-Leave Payment to SPP".  If you want to proceed, please contact Payroll Administration at ext 2314 90 days before separating or retiring and submit your request in writing at least 45 days in advance.

Where can I get more information?