Retirement
CalPERS (California Public Employees Retirement System)
The City of Stockton participates in CalPERS in lieu of Social Security. Contributions to this plan are made by the City on behalf of each participating employee and by the employee. The City receives annual reports from CalPERS. For information about CalPERS, click the CalPERS link in External Links below.
Deferred Compensation 457 Plan
The 457 Deferred Compensation Plan is a supplemental retirement savings program that allows contributions on a pre-tax basis. Federal and state income taxes are deferred until assets are withdrawn, usually during retirement when in a lower tax bracket.
Benefits of 457 Plan
- Reduction in current income tax liability while saving for retirement
- Accumulate tax-deferred earnings
- Flexibility to move your account into your new employer's retirement plan
- No penalties for withdrawals once you are off payroll regardless of your age
- Enhance retirement income
- Increase, decrease, stop, or restart your contributions as often as you wish
- Wide range of investment options through MassMutual
Contribution Limits for 2016
- Annual Limit: $18,000
- 50+ Catchup: $6,000
- Pre-Retirement Catchup: $36,000 (if eligible under-funded contributions from previous years)
Update Your Beneficiary
An employee's Deferred Compensation Plan beneficiary designation takes precedence over a will. Employees must update their beneficiary designation when:
- getting married or divorced,
- having children or grandchildren, or
- beneficiary passes away.
Employees may update beneficiary designations any time using the Change of Beneficiary form below. The completed form should be forwarded to the Human Resources Department.
457 Loan Program
Employees can borrow against their Deferred Compensation Plan contributions:
- Minimum Loan: $1,000
- Maximum Loan: 50% of your balance not to exceed $50,000
- Interest Rate: 1% Over Prime
- Term: 1-5 Years
- Payments: Post-tax payroll deductions each pay period
- Loan Administration Fee: $50 to City of Stockton; $200 if loan is to purchase primary residence
- Loan Payoffs: Please make cashier's check payable to "State Street Bank and Trust, as Custodian for City of Stockton, Deferred Compensation Plan and Trust - a 457 Plan."
- In the memo line, please write: FBO (Your name)
- Bring cashier's check to Human Resources Department; personal checks will not be accepted.
MassMutual Representative Office Hours
A MassMutual Retirement Education Specialist visits City locations weekly throughout the year:
MassMutual Representative Calendar 2016
Contact Us to contact the MassMutual representative directly.
External Links
California Public Employees Retirement System (CalPERS)
This City of Stockton web page last reviewed on --- 8/3/2016