Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Retirement Savings topic
No spam. Unsubscribe anytime.
CalPERS reviews personal savings options, employer plans and timing examples
Summary
CalPERS summarized personal savings vehicles (IRAs, brokerage accounts), employer‑sponsored plans (401(k), 403(b), 457), examples showing the benefit of starting early, and state programs including CalPERS 457 and Savings Plus administered by CalHR.
A CalPERS staff member outlined personal savings options members can use to supplement CalPERS pension and Social Security, and illustrated why starting earlier typically produces larger account balances over time.
The presenter listed common personal savings vehicles such as traditional and Roth IRAs, brokerage accounts, mutual funds, stocks, bonds and real estate. Employer‑sponsored deferred compensation plans were described as 401(k), 403(b) and 457 plans. The presenter emphasized that these plans are defined‑contribution arrangements where benefits depend on contributions and investment returns rather than a guaranteed monthly benefit.
The presentation included three examples to illustrate compounding and timing: Mary began investing $300 per month at age 30 for 15 years (total $54,000) and reached a hypothetical balance of $284,861 by age 65 at a 6% assumed return; John invested the same $54,000 later (ages 45–60) and the example showed a balance of $118,863 at 65; Jose began at 45 but invested $450 per month for 20 years (total $108,000) and reached $210,561 at 65 under the same assumptions. The presenter cautioned that investment returns and outcomes will vary for individuals.
CalPERS noted some employer programs specific to public agencies and state employees. Public agency and school employees may be eligible for the CalPERS Supplemental Income 457 plan if their employer contracts to offer it. State employees can enroll in the Savings Plus program administered by the California Department of Human Resources (CalHR), which offers 401(k) and 457 options. The presenter also referenced a CalPERS supplemental contribution plan that allows voluntary after‑tax contributions that grow tax deferred; on distribution, taxes are due on pretax earnings, the presenter said.
The presenter advised members to consult a financial planner or qualified professional for individualized investment advice and stated that CalPERS does not provide financial planning services or advice. The presenter also said additional resources, publications and instructor‑led classes are available through CalPERS and on its YouTube channel.
This segment provided informational guidance; no plan changes or enrollment actions were taken during the webinar.
