Savings Plus: Everything You Need to Know About the California Savings Plus Retirement Program

California state employees planning for retirement often juggle a defined-benefit pension (like CalPERS or CalSTRS) and additional savings to meet their goals. Imagine a 40-year-old state teacher thinking ahead: she has a CalSTRS pension, but wonders how to boost her nest egg for travel and living expenses later on. That’s where Savings Plus comes in. Savings Plus is a voluntary retirement savings program for California state employees offering both 401(k) and 457(b) plans. These plans allow you to set aside pre-tax (and Roth) contributions to grow tax-deferred and invest in a variety of funds. In other words, Savings Plus helps bridge any gap between what your pension and Social Security will replace and the income you’ll actually need in retirement. By starting early and taking advantage of compounding interest, state workers can build significant additional wealth over decades.

Understanding Savings Plus (401(k) and 457(b) Plans)

Savings Plus is administered by the California Department of Human Resources (CalHR) and is available to most California state and CSU employees. The program offers two types of tax-advantaged plans under one umbrella: a 401(k) plan and a 457(b) plan. Both plans let you contribute a portion of your salary through payroll deduction, either as pre-tax contributions (which grow tax-deferred) or Roth contributions (after-tax, then tax-free growth). You can enroll in one or both plans, since each has its own IRS limit. The plan is voluntary and complements your defined-benefit pension – it’s designed to supplement (not replace) your CalPERS/CalSTRS retirement income.

Key Differences: 401(k) vs 457(b). Although these plans are similar, they have important distinctions. Typically, 401(k) plans (more common in the private sector) and governmental 457(b) plans both allow pre-tax and Roth contributions and have the same annual deferral limit (currently $23,500 for 2025) However, 457(b) plans usually allow penalty-free withdrawals after leaving employment, whereas 401(k) withdrawals before age 59½ often incur a 10% early withdrawal penalty. In fact, Savings Plus 457(b) accounts have a special “pre-retirement catch-up” that can let state workers contribute double the normal limit in the last three years before retirement – a feature 401(k)s don’t offer. On the other hand, 401(k) accounts permit loans and hardship distributions under federal rules, while Savings Plus 457(b) plans do not (except for unforeseen emergencies). In short, 457(b) plans can be more flexible for government employees who may retire early, while 401(k) plans offer loan features and easier hardship withdrawals.

Eligibility and Enrollment. Not every California employee is eligible. To enroll in Savings Plus, you must be currently employed by the State or CSU and eligible for CalPERS, the Legislators’ Retirement System, or Judges’ Retirement System. Part-time, seasonal, or temporary employees who participate in the PST (Part-Time, Seasonal, and Temporary) retirement program are also eligible. Even retired annuitants who are rehired may join. Employees can enroll at any time (no open-enrollment window). To sign up, visit savingsplusnow.com and create an account (you’ll need basic info like SSN and birthdate). In fact, CalHR instructs: *“Enroll online at www.savingsplusnow.com.”*:contentReference[oaicite:26]{index=26}. There’s typically no employer “match” on contributions, except in rare cases by bargaining agreement. For example, certain bargaining units (like correctional officers) receive modest state contributions (a one-time $475 plus 1% of pay each month for Bargaining Unit 6).

How to Access Your Savings Plus Account

Savings Plus accounts are managed online at SavingsPlusNow.com. To log in, go to the website and click “Access My Plan” (or visit *www.savingsplusnow.com/iApp/rsc/login.x*):contentReference[oaicite:28]{index=28}. On the login page you’ll enter your username and password. If you’ve never set up online access, use the “Sign up for an online account” link on that page. Creating an account will verify your identity (you may need your Social Security number and other details). Forgot your username or password? The same page has a “Forgot username/password?” link to reset your credentials.

Once logged in, you’ll see your account dashboard with balances, contribution status, and investment allocations. You can adjust your contributions or change funds at any time (changes typically take effect within one or two payroll cycles). If you have trouble signing in or getting locked out, contact Savings Plus customer support. The Solutions Center can be reached toll-free at 1-855-616-4776 (Monday–Friday, 5 a.m. to 8 p.m. PT). Alternatively, email AskSavingsPlus@nationwide.com for assistance. They can help reset passwords, unlock accounts, or answer login questions. (Also note: the site works best on modern browsers like Chrome or Edge; Internet Explorer is no longer supported.)

Benefits of the Savings Plus Program

Savings Plus offers several advantages for California state employees aiming to grow retirement savings:

• Tax-deferral: Contributions are made with pre-tax dollars (unless you choose Roth), so they reduce your taxable income today. Your investments then grow tax-deferred, meaning you pay taxes only when you withdraw funds in retirement. This can significantly boost your long-term growth, as the IRS explains: “Both 457(b) and 401(k) plans offer tax-deferred contributions… [so] your contributions aren’t counted as taxable income for that year, therefore reducing your income tax liability. Instead, the funds can grow tax-free over the course of your career and are only taxed when you make a withdrawal. As one savings calculator graph illustrates, “using a pretax deduction… helps you invest tax-deferred dollars,” stretching each dollar of savings further.
• Investment flexibility: You can choose from a broad lineup of mutual funds, target-date funds, and professionally managed options. For example, Savings Plus offers target-date (lifecycle) funds that automatically adjust asset mixes as you approach retirement age. There are also index funds and actively managed stock/bond funds to match your risk tolerance. According to Savings Plus materials, participants enjoy “diverse investment options from which to build your portfolio. You can also use tools like an online retirement planner and fund performance tables on the Savings Plus site to help select funds that fit your goals.
• Lower fees: Compared to some private retirement plans, Savings Plus prides itself on low costs. Notably, there are no sales loads or transaction fees on the core funds. Instead, the plan charges a modest quarterly administrative fee of $6 per account and a tiny asset-based fee (0.01%) on balances up to $600,000. For example, an official performance report notes “Savings Plus charges a quarterly administrative charge of $6.00 per plan and a quarterly asset-based fee of 0.01% assessed against the first $600,000. By keeping fees low, more of your contributions stay invested and compounding.
• Power of compounding: The earlier you start and the more you contribute, the more compound interest can work in your favor. As Savings Plus puts it, “the earlier you start saving… compounding uses time to help your money make money for you by continually reinvesting your contribution earnings. Small contributions today can grow substantially over 30 years. This is why combining Savings Plus with your pension can significantly enhance retirement security.
• Additional contributions (when eligible): If you are nearing retirement or have unused leave, Savings Plus offers special features. For example, state law allows you to contribute lump-sum vacation or separation pay into Savings Plus when you retire, deferring the income tax on that pay. There’s also a “catch-up” for those who didn’t max out contributions in prior years – up to twice the annual limit in the few years before retirement. These options can boost your balance if you have windfalls late in your career.
• Rollovers and retirement income: Once you retire or leave state service, you have choices for using your Savings Plus balance. You can take a lump-sum payout or set up monthly withdrawals, or roll over all or part into another retirement account (e.g. an IRA or a new employer’s 401(k)/457). For instance, Savings Plus allows a direct rollover to an IRA or qualified plan without tax consequences (as long as the new plan accepts 457 funds). The plan even provides a booklet on benefit payment options. If you do take distributions, Savings Plus issues Form 1099-R for taxes and will withhold 20% federally by default on lump sums (as required by law). Importantly, the account remains yours – you can leave it invested indefinitely and draw on it as needed in retirement. (For employees over 72, required minimum distributions apply, but Savings Plus will process those automatically if you roll over at that age calhr.ca.gov.)

Comparing Savings Plus with Other Retirement Plans

Savings Plus is just one piece of a California public employee’s retirement picture, so it helps to compare it with other options:

• VS CalPERS/CalSTRS pensions: Your state pension (CalPERS for most, CalSTRS for teachers) is a defined-benefit plan: it pays you a lifetime income based on your salary and years of service. While pensions are valuable, they often replace only a portion of your working income. Savings Plus complements your pension. As the program notes, “Savings Plus is complementary to your CalPERS pension, and we offer a 401(k) and 457(b) that help bridge any gap in what you will need in retirement and the amount that your pension, savings, and Social Security will replace.” In short, think of your pension as covering basic retirement needs and use Savings Plus to fund extra goals (travel, healthcare, legacy, etc.) that aren’t covered by the pension alone.
• VS CalPERS (defined benefit) vs Savings Plus (defined contribution): Unlike pensions, Savings Plus has no guaranteed payout. Your benefit depends on contributions and market performance. On the positive side, you always own your Savings Plus balance and can take it with you even if you change jobs (rollovers make this easy). Also, Savings Plus offers flexibility: you can choose how much to contribute, what to invest in, and when to take distributions.
• VS private-sector 401(k)s: Many private companies offer 401(k) plans with or without employer matching. In comparison, Savings Plus is similar to a 401(k) in that it’s a voluntary contribution plan, but it’s designed for public employees. One advantage is fees: Savings Plus advertises very low fund fees and no loads, which can make it cheaper than many private plans. On the other hand, private plans might sometimes offer higher employer matches. In California state jobs, however, widespread matching isn’t common (aside from negotiated contributions, as mentioned). Finally, Savings Plus offers both a 401(k) and a 457 option, allowing state employees to contribute to two tax-deferred plans simultaneously and effectively double their retirement savings potential.
• Why it’s ideal for state employees: Government workers benefit from Savings Plus in a few ways. First, as noted, they can contribute to both Savings Plus plans in the same year, boosting their total deferral. Also, 457(b) plans allow penalty-free access after leaving service, which helps employees who retire early. And because Savings Plus is a statewide program, it comes with robust educational support (webinars, counselors, online tools) tailored to California employees. In summary, Savings Plus is structured specifically to work alongside public pensions and meet the needs of government workers.

Managing Your Savings Plus Account Effectively

Your Savings Plus account is entirely within your control. Here are some best practices:

1. Set or adjust contributions: You decide how much to defer. If you haven’t started, even a small contribution can grow over time. If you already contribute, you can increase (or decrease) your percentage at any time by logging into the website and updating your contribution elections. Because contributions are payroll-deducted, a change may take effect within a pay period or two. (In practice, deductions typically begin in the second pay cycle after you enroll or change elections.) Aim to maximize your contributions up to IRS limits if your budget allows, especially if you have years left before retirement.
2. Choose investments wisely: Beginners may find target-date funds attractive. These funds automatically blend stocks and bonds based on your expected retirement year, gradually becoming more conservative as you age. If you prefer a hands-on approach, you can allocate among the core stock, bond, and other funds. Consider your risk tolerance, time horizon, and retirement goals. Review fund fact sheets and performance history (available on the site) so you understand each fund’s strategy and fees. Diversify your portfolio – for example, mix a core bond fund with a stock index and a target-date fund. And remember, you can rebalance at any time as needed.
3. Use online tools and resources: Savings Plus offers several calculators and planning tools. For example, you can use an online Retirement Planner to model how different contribution levels grow over time, or a Paycheck Impact Calculator to see how pre-tax savings affect your take-home pay. Also explore the My Income & Retirement Planner tool (available on the site) to gauge if your savings and pension will meet your projected retirement spending. Educate yourself: Savings Plus regularly publishes webinars and written guides on topics like “saving more” or “preparing for retirement.” Stay informed by reading their newsletters or attending a workshop. 💡 Before increasing your contribution, make sure your emergency fund is in place. Use our free Emergency Fund Calculator at EmergencyFundCalculator.com to determine how much you should save for unexpected expenses. That way, you won’t need to raid your retirement funds for a car repair or medical bill.

Savings Plus Fees and Performance

Every fund has an expense ratio, but Savings Plus keeps fees low. Most core funds in the program have expense ratios well under 0.5%, and the annual report shows the administrative fees are minimal: just $6 per quarter per account plus 0.01% (0.04% annualized) on the first $600,000 of assets. There are no front or back loads on the core funds. If you take a loan, there’s a flat $75 loan initiation fee. (Unlike some plans, Savings Plus does not charge account maintenance fees or transaction fees for basic investments.) All fees are deducted directly from your account.

Performance of Savings Plus funds is updated regularly. Quarterly Investment Performance Reports are published (and can be found on the website), showing returns over various periods. For example, as of 3Q 2025, many target-date funds averaged around 6–8% annual returns (net of fees) over the past few years. Keep in mind that past performance does not guarantee future results. To track growth, you can view your account balance over time online and compare it to fund benchmarks. The Savings Plus site provides up-to-date performance charts and fund fact sheets for each investment option. Financial planners often recommend reviewing your portfolio at least annually and ensuring it matches your risk tolerance.

Withdrawals, Loans, and Rollovers

When it comes time to use your Savings Plus money, you have flexibility:

• Withdrawals: Upon separation or retirement, you can request a distribution of your balance. Options include a lump-sum payment (sent by check or direct deposit) or periodic installment payments. Savings Plus requires a 90-day processing period after your last contribution. For lump sums, they report the payment as taxable income and withhold 20% federal (plus California’s default 10% for state tax). If you retire after age 59½, there’s no 10% early withdrawal penalty on Savings Plus accounts (unlike many private 401(k)s), although regular income tax still applies.
• Hardship/Loans: Savings Plus 401(k) accounts do allow one loan per plan (two outstanding loans max) with a $75 setup fee. There is no loan option in the 457(b) plan. Hardship withdrawals are available only in the 401(k) plan under limited IRS rules (for things like certain medical expenses or principal home purchase); they are not allowed in the 457(b) plan. (Note: 457(b) plans allow “unforeseeable emergency” withdrawals, which is similar but under different rules.)
• Rollovers: You can roll your Savings Plus account into another qualified plan without taxes. For instance, if you change jobs or retire, you could roll your 401(k) or 457(b) balance into an IRA or your new employer’s plan (if it accepts 457 funds). Conversely, you can roll external retirement money into Savings Plus (the site provides a “Rollover-In Form” for this). Rollovers preserve the tax-deferred status, so they won’t trigger taxable events if done correctly. Just be sure to follow the instructions on rollovers carefully, including providing letters of acceptance if needed.

After you begin distributions, Savings Plus continues to provide service: they mail an annual statement and the IRS 1099-R form each year. You’ll also need to start required minimum distributions (RMDs) by age 73 if you’re still holding the account (Savings Plus can help process those when needed). Even in retirement, you can keep the account open and move money between funds.

Savings Plus Support and Contact Information

If you have questions or need help, Savings Plus offers several support channels:

• Phone: The Savings Plus Solutions Center is available at 1-855-616-4776 (TTY 1-800-848-0833 for hearing impaired). Hours are Monday–Friday, 5 a.m. to 8 p.m. Pacific Time. (When calling, you can say “representative” or press 0 to speak to a real person immediately.)
• Online Chat/Help: On the SavingsPlusNow.com site, you can schedule one-on-one appointment calls or chat with a Retirement Specialist. These specialists provide educational guidance (not investment advice) on topics like enrollment, fund options, and retirement planning.
• Email: For non-urgent inquiries, you can email AskSavingsPlus@nationwide.com. They typically respond within one business day. (Reminder: never email personal details like your Social Security number.)
• Local Offices: There are in-person service centers. For example, the main Savings Plus office is at 1810 16th Street, Sacramento, CA 95811, open weekdays 8 a.m.–5 p.m. (Check current locations/hours on the website or call first).
• Resources: The Savings Plus website has extensive FAQs, forms, and guides (e.g. on withdrawals, rollovers, and retirement readiness). There’s also a toll-free fax number and mailing address for paper forms.

Whatever your need—whether it’s help logging in, changing contributions, or understanding your distribution options—Savings Plus has staff and publications to guide you. As always, for complex tax or legal questions about your retirement, consult a qualified advisor.

CTA: Secure Your Financial Future

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