Investments

Retirement Investments with Cuesta College

All employees are eligible to invest a portion of their wages into a retirement investment via payroll deduction.

Important Notice: Only you can decide if you should make contributions to a retirement investment plan. In making the plans available to you, the District is simply acknowledging that many individuals want to accumulate retirement savings in addition to the income that will result from participation in CalPERS or CalSTRS. The availability of these plans in neither a recommendation or endorsement by the District.

Tax-Sheltered Annuities - 403(b)

Please Read the following document "What is a TSA?" for general TSA information. The annual limit for 2006 is $15,000. Catch-up contributions for employees over age 50 have a higher limit.

When considering a TSA, please check that the company you plan to invest with is part of our approved vendors list. You can look at approved vendors and see their products on the 403(b) Compare website.

When you want to set up an investment, you will need to set up an account through a financial advisor or directly with the company. The company you invest with must be on the approved vendor list. After you set up your account you will need to complete the Salary Reduction Agreement. Your financial advisor can help you. Send the completed form to the Insurance Benefits Office at PO Box 8106, San Luis Obispo, CA 93403-8106. Your deduction will begin with the next available payroll.

The Salary Reduction Agreement is also used to make changes to the amount of your TSA contribution.

CalPERS 457 Deferred Compensation Plan

The CalPERS 457 Plan is a voluntary tax-deferred retirement savings plan similar to 403(b) TSA. Like a TSA, contributions are invested before taxes and distributions are taxed as ordinary income when received after retirement. The annual limit for 2006 is $15,000. Catch-up contributions for employees over age 50 have a higher limit.

What makes the 457 different is that the money is held in trust and the investments can be diversified into more than just annuities or mutual funds. The distributions are flexible and portable with no early withdrawal penalties. The CalPERS 457 is a Retirement Trust in State law. As the Trustee, CalPERS acts in the interest and for the benefit of the participants.

Although this plan is administered by CalPERS, all employees are eligible to participate. To set up the CalPERS 457 Deferred Compensation Plan you will need to fill out the Employee Action Form and the Beneficiary Form. Please visit the Insurance Benefits Office to pick up the necessary forms, or email your request to kdecarli@cuesta.edu and they will be sent to you by intercampus mail.

The first deduction will begin in the month after we receive your completed form. For example, if you fill out a form on January 29 and we receive it by mail on February 2, the first deduction will be taken on the March 31 payroll.

For more information on the CalPERS 457 Program call the Customer Service Line at (800) 260-0659.