|
|
Savings Plus Program |
| Service Credit Purchase | SPP Web site (www.sppforu.com) |
| To print this page, press CTRL+P on your keyboard. | VRS -- (866) 566-4777 |
1. What steps do I follow to Purchase Service Credit?
Read and print the Purchase of Service Credit Form and follow the directions. You must request a cost estimate from CalPERS, CalSTRS, or other government agency prior to requesting a transfer to purchase service credit. After you receive your estimate, submit your Purchase of Service Credit Form to Savings Plus. If you have questions about your eligibility to purchase prior service credit, contact CalPERS at 1-888-225-7377 or CalSTRS at 1-800-228-5453.
2. Where can I obtain the 401(k) Purchase of Service Credit Form?
Download the Purchase of Service Credit Form from the SPP Web site. From the "Employee Services" page, click "Plan Info & Forms", then "Forms and Publications" and select the form you need. All forms are listed in alphabetical order.„
„
Call the Voice Response System (VRS) and after entering your Social Security Number and Personal Identification Number (PIN), chose option 4, then option 5. Then enter the VRS order number 8011 for the 401(k) Purchase of Service Credit Authorization Form. Enter order number 8034 for the 457 Plan Purchase of Service Credit Authorization Form (the form is the same for both plans).„
Visit the Savings Plus office at 1800 15th Street, Sacramento, CA3. May I specify the fund(s) my distribution payments will come from?
No.
4. Can I use my assets to purchase service credit or ARSC (Air Time) from the California Public Employees' Retirement System (CalPERS) or other defined benefit plans?
Yes. Law changes permit using SPP 457 Plan assets to purchase service credits from defined benefit plans such as the California Public Employees’ Retirement System (CalPERS), the California State Teacher’s Retirement System (CalSTRS), and other defined benefit plans. Using 401(k) assets to purchase service credit has always been possible.
5. Can I use my 401(k) Employer Account Funds to purchase service credit or ARSC Time?
Yes. Using Employer 401(k) assets to purchase service credit or ARSC Time is permitted.
6. How do I purchase ARSC Time using assets from my 401(k) Plan and/or 457 Plan?
SPP strongly recommends moving assets to the Savings Pool or Dwight Asset Management Stable Value Fund before you request an ARSC check. Dollars held in either the Savings Pool or Dwight Asset Management fund will not fluctuate with market conditions as is the case with other SPP Investment options. Taking this step will insure your ARSC check issues in the exact amount required to purchase your Air Time and will prevent check return and re-issue delays that could impact your time sensitive purchase.
„
Obtain the SPP Purchase of Service Credit Form, (DC-4344-0705) and enter all required information.„
Under Section III –Payment Information, enter the total dollar amount of your service credit purchase obtained from CalPERS/CalSTRS/other governmental agency (Item A).„
Enter an EXACT AMOUNT to be transferred from your SPP Plan account to purchase Service Credit (Item B). You may not specify an amount that is GREATER than the service credit cost in Item A. Warning: If your assets are invested in funds other than the Savings Pool or Dwight, a market downturn may impact your ARSC check amount.·
To liquidate one plan and use the remainder from the other plan, you need to calculate EXACT dollar amounts for each plan.
EXAMPLE: Your ARSC quote is $50,233.00; you have $21,700.00 in your 401(k) and $48,000.00 in your 457; you want to liquidate your 401(k) and pay the remaining amount with your 457; you must first move your 401(k) assets to either the Savings Pool or Dwight Asset Management Fund; once your exchange has "settled" (the next business day if you processed your exchange before the 1pm PT close time) you calculate your 401(k) to the nearest whole dollar then calculate the remainder needed from your 457 to complete the ARSC purchase.
·
Checks that exceed the ARSC amount are rejected by CalPERS and must be re-issued. Call the toll free number and talk to a customer service representative to resolve this situation.
Note: To obtain your 401(k) and/or 457 account balance, call the automated VRS (1-866-566-4777) or press * 0 to reach a customer service representative (M-F, 8:30 a.m. to 4:00 p.m.).
7. How can I purchase Service Credit "ARSC Time" using funds in my Schwab PCRA?
Funds in your Schwab account MUST be transferred back into your SPP core account before the ARSC purchase can begin. You need to liquidate your investment holdings using the Web, VRS, or by contacting Schwab at 1-888-393-7272 and speaking with a representative.
Once your holdings have been liquidated, the proceeds will be invested in the Schwab Money Market Fund. Once your assets are in the Money Market fund, you can call SPP at 1-866-566-4777 and press * 0 to speak to a representative, use the VRU or Web (automated systems) to transfer assets to your SPP core account.
Note: Read the Schwab PCRA Q&A #9 for details on how to move your funds in/out of the PCRA.
8. How quickly can SPP process my ARSC check request?
Please allow 2 to 3 weeks for ARSC check processing, from the date SPP receives your properly completed forms.
„
Complete, sign and mail the SPP Purchase of Service Credit Form (DC-4344-0705) to Savings Plus, along with the CalPERS Certification Form titled "Plan to Plan Transfers and Direct Rollovers". The CalPERS Form is included in the Additional Retirement Service Credit package provided by CalPERS.„
SPP will process your request in two steps. First, we sign and return the certification form to you within 10 business days. Next, we issue the transfer check and mail it separately within 21 business days. Note: The CalPERS certification form and SPP check will arrive at your address separately.„
Your check will be made payable to CalPERS/CalSTRS/other governmental agency for your benefit (indicated by FBO) and will be mailed to your address of record. Upon receipt, submit the certification form, the check, and any additional required documentation to the pension provider to complete your service credit purchase. Your endorsement on this check is not needed.„
If you have a timeline concern, contact CalPERS to request a time extension on the ARSC quote you received.
We hope that the above information has answered your question. If not, click the button below to send us an e-mail message.
