State of California

  M E M O R A N D U M

  REFERENCE CODE:
  2004-052

  DATE:
  September 29, 2004

  TO:
  Budget Officers
  Employee Benefit Officers
  Personnel Officers
  Personnel Transactions Supervisors

  FROM:
  Department of Personnel Administration
  Savings Plus Program

  SUBJECT:
  Mandatory Alternate Retirement Program for New State 
  Miscellaneous and Industrial Employees Exempted from 
  contribution to the California Public Employees Retirement 
  System 

  CONTACT:
  Savings Plus Program
  (916)  324-2909, CALNET 8-454-2909
  FAX: (916) 327-1885


  This PML is intended to provide additional information regarding the 
  new mandatory Alternate Retirement Program (ARP) for new state 
  miscellaneous and industrial employees.  Initial information about ARP 
  was provided in PML 2004-040.
  
  Employers will be assessed an administrative fee to cover the cost to 
  administer ARP.  The fee will be calculated by applying a per 
  deduction fee of $4.80 and multiplying the fee by the number of ARP 
  deductions.  The fee will be assessed quarterly by the State 
  Controller's Office similar to the method for assessing fees for the 
  Part-time, Seasonal, and Temporary Employee Retirement Program.
  
  ARP Fact Sheet

  Attachment 1 is the new Understanding Your Retirement Benefits:  A 
  Fact Sheet for New California State Employees.  This fact sheet is 
  available for your use in discussing ARP with new employees.  The fact 
  sheet is also available on the DPA Web site, www.dpa.ca.gov, under 
  Benefits.
  
   
  
  
  
  
  Transaction Processing

  The definition for the "TR" code has been corrected from industrial to 
  miscellaneous member.  The following retirement account codes were 
  established for ARP.
  
  Codes and Definitions
  TK -  CalPERS miscellaneous member subject to Social Security and Medicare.
  TP - CalPERS industrial member subject to Social Security and Medicare.
  TR - CalPERS miscellaneous member subject to Social Security and Medicare at
  Porterville Developmental Center (CBU 18).
  
  The ARP Eligibility Worksheet (Attachment 2) has been revised to 
  reflect the correct code definition.  Questions regarding ARP 
  requirements and CalPERS eligibility should be directed to CalPERS at 
  (888) 225-7377.
  
  Contact Information
  
  Savings Plus' specially trained customer service representatives are 
  available to assist personnel offices with ARP questions.  Please call 
  (916) 324-2909, Monday through Friday between 8:30 a.m. and 4:00 p.m.  
  If a representative is not available please leave a message.  Your 
  call will be returned as soon as possible.
  
  
  
  
  
  Lura Franzella, Administrator
  Savings Plus Program
  
  
  
  Attachments will be distributed via mail.