CalPERS (California Public Employees Retirement System)
The City of Stockton participates in CalPERS in lieu of Social Security. Contributions to this plan are made by the City on behalf of each participating employee and by the employee. The City receives annual reports from CalPERS. For information about CalPERS, click the CalPERS link in External Links below.
Deferred Compensation 457 Plan
The 457 Deferred Compensation Plan is a supplemental retirement savings program that allows contributions on a pre-tax basis. Federal and state income taxes are deferred until assets are withdrawn, usually during retirement when in a lower tax bracket.
Benefits of 457 Plan
- Reduction in current income tax liability while saving for retirement,
- Accumulate tax-deferred earnings,
- Flexibility to move your account into your new employer's retirement plan,
- No penalties for withdrawals once you are off payroll regardless of your age,
- Enhance retirement income,
- Increase, decrease, stop, or restart your contributions as often as you wish, and
- Wide range of investment options through MassMutual.
Contribution Limits for 2015
- Annual Limit: $18,000
- 50+ Catchup: $6,000
- Pre-Retirement Catchup: $36,000 (if eligible under-funded contributions from previous years)
Update Your Beneficiary
An employee's Deferred Compensation Plan beneficiary designation takes precedence over a will. Employees must update their beneficiary designation when getting married or divorced, having children or grandchildren, or if one a beneficiaries passes away. Employees may update beneficiary designations any time using the Change of Beneficiary form below. Once completed, the form should be forwarded to the Human Resources Department.
457 Loan Program
Employees can borrow against their Deferred Compensation Plan contributions:
- Minimum Loan: $1,000
- Maximum Loan: 50% of your balance not to exceed $50,000
- Interest Rate: 1% Over Prime
- Term: 1-5 Years
- Payments: Post-tax payroll deductions each pay period
- Loan Administration Fee: $50 to City of Stockton; $200 if loan is to purchase primary residence
- Loan Payoffs: Please make cashier's check payable to "State Street Bank and Trust, as Custodian for City of Stockton, Deferred Compensation Plan and Trust - a 457 Plan" and bring to Human Resources Department (personal checks will not be accepted)
- In the memo line, please state: FBO (Your name)
MassMutual Representative Office Hours
A MassMutual Retirement Education Specialist visits City locations based on the following schedule:
1st, 3rd, and 5th Wednesday of each month
Stewart/Eberhardt Building (SEB) - Human Resources Benefits Conference Room
2nd Wednesday of each month
City Hall - 2nd Floor Council Chambers
4th Wednesday of each month
Municipal Utilities - Delta Conference Room
4th Thursday of each month
Police Department - 2nd Floor Community Room
Corp Yard - Break Room
See the Contact Us page to contact the MassMutual representative directly.
This City of Stockton web page last reviewed on --- 8/25/2015