CalPERS Offers Refund Options and Educational Resources for Members

CalPERS members are being urged to explore their options regarding retirement contributions and benefits during a recent informational meeting. Key discussions highlighted the implications of requesting a refund from CalPERS, which includes returning contributions and interest but results in the termination of membership and loss of future benefits.

Members should be aware that opting for an in-hand distribution refund comes with significant tax consequences. A mandatory 20% federal tax withholding applies, along with an optional 2% California state tax. Additionally, those under 59 years old face a 10% federal penalty and a 2.5% state penalty. To avoid these financial pitfalls, members are encouraged to consider rolling over their funds into another eligible retirement plan, such as an IRA.

CalPERS representatives emphasized the importance of utilizing their online resources. The CalPERS website, calpers.ca.gov, serves as a comprehensive hub for members to access vital information, including service credit purchases, health coverage details, and retirement estimates. Members are strongly encouraged to create a myCalPERS account for secure, real-time access to their account information and to facilitate communication with CalPERS.

The meeting also promoted educational opportunities available through CalPERS, including classes and events designed to help members better understand their benefits. Members can subscribe to the member education bulletin for updates on new classes and events, ensuring they stay informed about their retirement options.

In conclusion, CalPERS is committed to providing its members with the tools and knowledge necessary to navigate their retirement journey effectively. Members are urged to take advantage of these resources to make informed decisions about their financial futures.