Savings Plus presenter explains 401(k)/457 plans, 2025 limits and enrollment options
Loading...
Summary
A Savings Plus representative explained eligibility for California public‑employee supplemental plans, summarized 2025 contribution and catch‑up limits (including Secure 2.0 changes), advised on rollovers and annuity cautions, and provided enrollment contacts.
Tiffany Vick, representing Savings Plus, described how Savings Plus complements CalPERS and Social Security and walked attendees through plan types, eligibility, contribution limits for 2025 and enrollment steps.
Vick said Savings Plus offers 401(k) and 457 plans to eligible California state and CSU employees, certain rehired annuitants and members of specified retirement systems. "Savings Plus is a way to help bridge that potential gap," she said, describing how the average state employee may need additional savings beyond a CalPERS pension and Social Security.
She reviewed 2025 contribution guidance: the standard elective deferral limit is $23,500 for the year, and participants may use both a 401(k) and a 457 plan to increase total retirement savings; Vick noted catch‑up provisions for those age 50+ ($7,500) and referenced Secure 2.0 changes effective 01/01/2025 that expand special age‑based catch‑up options for certain ages prior to retirement. She also explained a provision permitting higher 457 contributions in the three full years before retirement for that plan.
On practical steps, Vick explained enrollment options (QR code, savingsplusnow.com, texting a keyword, or calling the Solutions Center at (855) 616‑4776 with Pacific‑time weekday hours) and encouraged consolidating former employers' retirement assets into Savings Plus to reduce fees. She cautioned that rollovers, annuities and advisor relationships carry fees and risks and urged participants to ask about commissions, withdrawal penalties and insurer ratings before transferring assets.
Vick recommended using the My Income and Retirement Planner (MERP) offered with Savings Plus accounts to generate retirement readiness reports and to automate contributions, increase contributions with pay raises, and consider catch‑up options as appropriate.
