The PST Retirement Program is a mandatory retirement savings plan by richman6

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									The PST Retirement Program is a mandatory retirement savings plan for employees who aren’t
members of a retirement system, such as CalPERS. You’re automatically enrolled in the PST
Retirement Program if you hold a part-time, seasonal, or temporary position with the State (now
or some time in the past), are not covered by Social Security, and don’t meet the CalPERS
eligibility criteria based upon your time base or length of service.

                  How does the PST Program help me save for retirement?
If you’re enrolled in the PST Program, 7.5% of your gross wages are deducted (pre-tax) from
each paycheck and deposited in a PST account on your behalf.

                       What happens to the funds in this PST account?
The funds in your account are invested in a “stable value” fund (specifically, the Dwight/SEI
Stable Asset Fund), which preserves capital and provides a stable rate of return. Your account
balance consists of the deductions from your paycheck and any interest earned. An
administrative fee of up to 50 basis points (1/2 of 1%) per year may be assessed against
program assets on a monthly basis.

                                 Can I close my PST account?
If you’ve left State service, you have the following options to close your account:

      You can apply for a refund, or
      If you’re employed by another government agency that offers a 457 Plan, you can roll
      over the funds in your PST account directly to your new employer’s 457 Plan, or
      You can request to roll over the funds in your PST account to an IRA, 401(k), or a 403(b).

Just fill out the enclosed Benefit Payment Application and mail it to the address on the
application. Your payment will be issued 90-120 days after your last PST paycheck deduction
has been posted to your PST account.

                             What happens if I don’t do anything?
If there haven’t been any paycheck deductions going into your PST account for the past three
years, your account may be considered “unclaimed” (dormant). Dormant accounts are
transferred to the State Controller’s Office (SCO), Unclaimed Property Unit. Once this
happens, you need to submit a claim form to the SCO to get your money back. For forms and
details, log on to www.sco.ca.gov and follow the directions to claim “unclaimed property.”

If you’ve left State service, you can avoid having your account become dormant. Just submit
the enclosed Benefit Payment Application by November 30, 2005.

                        How much money is there in my PST account?
We mail you an account statement each August (like the one that came with this newsletter). It
shows paycheck deductions deposited to your account, any interest earned, administrative fees,
and the ending balance for that period. (We don’t mail statements if the balance is zero.)
Beginning in 2006, statements will be mailed twice a year, as shown below.

             Statement Mailing Date…                         For Time Period…
          February 2006                           June 30, 2005 - December 31, 2005
          August 2006                             January 1, 2006 – June 30, 2006
          February 2007                           July 1, 2006 – December 31, 2006


                            What if I become eligible for CalPERS?
If your employment status (length of employment or time base) changes and you become eligible
for CalPERS, the 7.5% deduction from your paycheck stops. Your entire PST account balance is
automatically transferred to a 457 Plan with the Savings Plus Program.

                               What’s the Savings Plus Program?
The Savings Plus Program (SPP) administers the PST Retirement Program. SPP is part of the
Dept. of Personnel Administration. Savings Plus also administers a 401(k) plan and a 457 plan
for State employees.

                            Who do I contact if I have questions?
If you have questions about why you’re in the PST Program, contact your Personnel Office.

 If you have questions about your PST account, call SPP toll-free at 1-866-566-4777. To hear
your account balance, press 2 for PST Program, then press * 0 to speak with a customer service
representative (available Mon. – Fri., 8:30 a.m. – 4:00 p.m., PT, excluding State holidays).

For more information about the PST Retirement Program and the Savings Plus Program, visit our
Web site at www.sppforu.com and click on “Employee.”



Savings Plus Program • 1800 15th St., Sacramento, CA 95814-6614 • 866-566-4777 • fax: 916-327-1885
                                                                                          NRM-2841CA

								
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