[UCRDBR] Retirement Savings Program - New rules for UC 457(b) Plan Contributions

[Departmental Benefits Representatives]

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March 29, 2023

To:
Department Benefits Representatives
From:
Central HR Benefits Office on behalf of UC Office of the President
Re:
Retirement Savings Program - New rules for UC 457(b) Plan Contributions




The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act<https://hr.ucr.edu/sites/default/files/2023-03/uc-457b-april-2023-participant-notice-email-final-3.22.23.pdf> was signed into law at the end of 2022 with the goal of assisting with saving and investing for a more secure retirement.  One of SECURE 2.0's provisions eliminates the requirement for 457(b) governmental plan participants to make a deferral election in the month prior to the compensation being paid.  Which means the UC 457(b) plan aligns with the payroll deduction processing of UC's 403(b) and DC (after tax) plans.
The attached communication is scheduled to be distributed on Monday, April 3, 2023, to all actively contributing employees in the 457(b) plan as well as those who previously contributed and have a balance in the 457(b) plan.
NetBenefits, www.netbenefits.com<http://www.netbenefits.com>, will display the following message starting by the end of business on March 31, 2023 for anyone making a 457(b) deferral election. "Beginning in April 2023, contributions (including new deferrals, changes to deferrals and cancellations) in the UC 457(b) Plan will take effect with the next available paycheck (subject to payroll cut-off dates)."
This plan change will be reflected in the Summary Plan Descriptions on UCnet, and myUCretirement.com will continue to provide updates on how SECURE 2.0 provisions impact UC's Retirement Savings Program.
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