CalPERS presents 457 deferred compensation plan to school employers; highlights low fees, turnkey services and payroll integration

CalPERS staff delivered an overview of the CalPERS 457 deferred compensation plan and its services for public agencies and school employers.

“Since its exemption in 1995, it has offered public agencies, schools, employees, an effective means of saving for retirement through payroll deductions,” said Lee Lowe, supplemental income programs. Lowe said the plan is professionally managed, its assets are separate from the pension trust, and it had more than $2.6 billion in assets under management and over 30,000 participant accounts.

Lowe described choices for employers and participants: target‑date funds for hands‑off investing, index funds for DIY investors, and a brokerage window for experienced investors. He said fees are a transparent “all‑in” structure and that plan fees have been reduced over 50% since 2020; target retirement date funds were described as costing about 20 basis points.

The recordkeeper and education provider is Voya, Lowe said, and CalPERS staff noted account managers are available at no additional cost for meetings, group presentations and benefits fairs. Employers may offer the CalPERS 457 plan alongside existing 403(b) plans; the CalPERS payroll integration was described as simplifying contributions and loan repayments via myCalPERS.

CalPERS asked districts interested in adopting the plan to contact the business manager for information and suggested employers consider the program’s education and on‑demand resources for staff.