CCPOA.org - Information for Parole Services Associates

CCPOA - Information for Parole Services Associates

If you are a Parole Services Associate and you hired on or after August 11, 2004 you were automatically enrolled in the Alternative Retirement Program (ARP).

What this means is that for the first two years 5% of their pay was deducted and placed in an ARP account. In their 25th month, the deduction stop going into the ARP and start going to CalPERS. During months 47 and 49, they have to choice what to do with the money in their ARP account. They have three options:

1. They can transfer the money to CalPERS.
2. They can take a distribution of the money as a direct payment or roll it into an IRA, etc.
3. They can transfer the money into a 401K.

There will be a fee accessed for picking options 2 or 3. If they do not make a choice, option 3 is the default and in option 3 there is also a monthly administrative fee charged against the funds. Here's the real problem, if they take options 2 or 3 they lose the service credits for their first two years. There are no fees for taking option 1 and they will keep the service credits for their first two years, but they have to affirmatively choose to take option 1 during their 47th through 49th months.

The State begins mailing all this information to the affected employees in the their 45th month, but a little reminder doesn't hurt.

For more ARP details and up-to-date information, go to the Savings Plus Web site www.sppforu.com (click on the alternate retirement program (arp) Quick Link).