Financial Planning

Below is a list of financial planning options available to SFSU employees.

Savings Plus Program & Deferred Compensation Plan | TSA 403 (b)
Savings Bonds

Savings Plus Program (401k) & Deferred Compensation Plans (457)

Savings Plus offers two deferred compensation plans for California state employees: a 401(k) Thrift Plan and a 457 Deferred Compensation Plan. The benefits of these programs include:

• Lower tax withholding through pre-tax deferrals
• Easy investing through payroll deductions
• Numerous investment options and the ease of daily exchanges among them
• Flexibility in changing future deferrals
• Various benefit payment options
  

Who Is Eligible For Savings Plus?

Employees who are contributing members to the California Public Employees’ Retirement System (CalPERS) are eligible to participate with the Savings Plus Program.

How To Request Information Or Join

For enrollment information or to request an enrollment kit, please call the Savings Plus Program at (916) 322-5070 or send a written request to the Department of Personnel Administration, Savings Plus Program Office, 1515 "S" Street, North Building, Suite 108, Sacramento, CA 95814-7243.

Additional information can be obtained by visiting the Savings Plus Program website.


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TSA 403 (b) Program

Eligibility | Salary Reduction Agreement | Maximum Annual Contribution Over Age 50 Catch-Up Provision | 15 Year Rule Catch-Up Provision 2006 Maximums | Additional Information and Forms

The CSU’s 403(b) program includes tax sheltered annuities and mutual fund custodial accounts qualified under Section 403(b) of the Internal Revenue Code. Over 100 different companies are available for employees to invest with through monthly pre-tax payroll deduction.

Eligibility For TSA 403(b) & Mutual Fund Participation:

• The minimum monthly 403(b) contribution is $15 per month. Currently, some 403(b) vendors require a monthly contribution greater than $15, so this level of contribution may limit the employee’s choice of vendors.
• With the exception of certain student classifications, all employees are eligible to participate in the 403(b) program, including rehired annuitants (regardless of age).
• The following student classifications are ineligible for 403(b) participation:
  • Resident Assistant (class code 1869)
  • Student Assistant (class code 1870)
  • Student Trainee, On-Campus Work Study (class code 1871)
  • Student Trainee, Off-Campus Work Study (class code 1872)
  • Graduate Assistant (class code 2355)

Salary Reduction Agreement

The IRS now permits an employee to change his or her Salary Reduction Agreement (SRA) at any time during the year. Because the CSU has a monthly payroll, employees may submit a new SRA each pay period if desired.
Salary Reduction Agreement (SRA) forms must be signed and submitted to Human Resource Services prior to the date the applicable salary payment is earned (e.g., if the SRA is to be applied to the June pay period’s salary payment on July 1st, it must be signed and submitted to Human Resource Services by May 31st). This rule applies to new SRAs, SRA changes and cancellations.

Maximum Annual Contribution (General Limit)

For the 2006 tax year, the lesser of the following two limits apply to determine the maximum contribution to a 403(b) plan:

Internal Revenue Code (IRC) 402 (g) Elective Deferral Limit- $15,000
Internal Revenue Code (IRC) 415 “Percentage of Compensation” Limit- 100% of adjusted gross salary

Over Age 50 Catch-Up Provision

IRC Section 414(v), added under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), created a new catch-up provision available to individuals age 50 or older before the end of the plan year, and allows them to make additional pre-tax elective deferrals to a 403(b) plan over and above the general contribution limits, without regard to previous contributions. This new catch-up rule does not require a calculation worksheet. The maximum amount of this new additional contribution is $5,000 in 2006 for a total of $20,000.

15-Year Rule Catch-Up Provision

IRC Section 402(g)(7) “catch-up” election permits some long-term employees to contribute an additional $3,000 during the year. If you wish to contribute up to this amount you must demonstrate your eligibility for the catch-up rule by completing a “2006 Worksheet to Determine Eligibility for 403(b) Contributions over $15,000”. You may pick up a worksheet at the Human Resource Services, Customer Service Center (CLA Building 98, room B1-20). This worksheet must be completed every year you plan to contribute over the limit.

2006 maximums under this provision

$18,000 if under the age of 50
$23,000 if over the age of 50
Additional Information:

Internal Revenue Service (IRS) Publications 553 and 571 provide additional information, these publications are available on the IRS’s web site address at: http://www.irs.gov.

ADDITIONAL INFORMATION AND FORMS

Salary Reduction Agreement (SRA) Form

List of Authorized TSA Companies

403 (b)/457/401k Comparison Chart

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Savings Bonds

All employees may purchase U.S. Savings Bonds in denominations of $100, $200, $500, and $1,000. The principal and interest due on U.S. Savings Bonds is paid when the bond is cashed. Bonds are sent to employees as they are purchased and can be replaced if lost, stolen or destroyed.

To establish a payroll deduction to purchase U.S. Savings Bonds, fill out the U.S. Savings Bond Purchase/Payroll Deduction Authorization and return to Payroll.

For additional enrollment information:

U.S. Treasury Website | Savings Bond FAQ

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