Budgeting and Overtime
What is the first step in creating a budget, according to the Training Guide?
Step 1: Define Goals and Priorities
What is the CHP supplemental retirement plan website called, and who administers it?
SavingsPlus (SavingsPlusNow.com), Nationwide
What are the 2 formulas for State Safety in CalPERS, and when are they effective?
Classic (on or before 12/31/2012), PEPRA (on or after 1/1/2013)
How much Group Term Life Insurance do public safety officers have from CalPERS?
$5,000
After the One Big Beautiful Bill Act of 2025, were taxes on overtime eliminated?
No! There are income limits and only the first $12,500 in pay is deductible for eligible employees.
Name 3 "Good Habits" of budgeting from the Financial Wellness Training
- Avoid impulse buying triggers
-Cut back unnecessary expenses
-Pay at least the minimum due
-Keep track of casual spending
-Determine need and objective before shopping online
-Keep track of subscriptions
-Make a grocery list
-Shop auto and home-owners insurance costs annually
What are the 3 styles of investing available in the supplemental retirement plan?
1. Do it for me (Target Date)
2. Manage it for me (SDBA)
3. Do it myself (self-managed portfolio)
What is the classic member formula?
3% at 50
Explain the Basic Death Benefit from CalPERS
Your beneficiary will receive a lump-sum payment of a refund of your contributions, plus interest.
What type of account must catch up contributions be made to for high earners?
Roth
What are the 2 methods of reducing debt in the training guide?
Debt Snowball
Debt Avalanche
What types of accounts are available to CHP officers?
401(k), 457(b)
What is the PEPRA member formula?
2% at 50, 2.7% at 57
When does the Alternate Death Benefit take effect?
20 years of service
What are the new catch-up contributions for employees over age 60?
$11,250
What are the 3 steps to building an emergency fund?
1. Determine Goals
2. Create a dedicated account
3. Make Deposits
What are the contribution limits for a CHP officer under 50 in SavingsPlus?
$49,000 (24,500X2)
What are the maximum pensionable incomes for Classic and PEPRA members in 2026?
Classic: $360,000
PEPRA: $191,679
What is the 20-year gap? How many months of income replacement does an officer have if they pass away with 10 years of service with their CalPERS death benefits alone?
Members with less than 20 years of service who pass away and were not eligible to retire have limited death benefits available for their loved ones.
Approx. 16 months.
What provisions were rescinded by the Social Security Fairness Act of 2024?
Windfall Elimination Provision, Government Pension Offset
Name 3 good uses of overtime pay, and 3 dangerous uses of overtime pay
Good:
- Savings deposits, develop an emergency fund, special purchases, paying off debt, home downpayment, remodel, vacation, gifts
Dangerous:
- Mortgage Payments, basic necessities, paying bills, monthly payments on auto, etc. , Retirement investing, timeshares, tuition
What one-time option for deferral is available only in the 457(b)? What is its limit?
Traditional Catch-Up at Retirement, $24,500
DAILY DOUBLE!!
A PEPRA member retires at age 55 with 30 years of service. What is their benefit factor?
A Classic member retires at age 50 with 28 years of service. What is their benefit factor?
2.5% * 30= 75%
3%*28= 84%
Explain the Alternate Death Benefit.
A monthly allowance equal to the amount you would have received if you had retired at age 50 and elected the 100% of the option portion of your ongoing monthly benefit for eligible spouse or registered domestic partner, or a monthly allowance equal to half of what the unmodified retirement allowance would have been at your date of death for eligible children.
How much of an officer's lump sum can be deferred if they retire in November/December of a year?
•Employees retiring in November/December may still make catch-up contributions for the current year (if they turn 50 by Dec 31st and meet plan/income rules) and for the following year.