The Governor has announced that the Leave Buy Back program for FY 2023-2024 is cancelled due to budget considerations. As a result, any forms received requesting to transfer Leave Buy-Back to Savings Plus are now null and void. Savings Plus will seek to offer this opportunity next fiscal year if the Leave Buy-Back Program is offered.

Boost your retirement readiness with leave time buy-back

Transfer your accumulated leave credits to Savings Plus to help boost your retirement readiness, and harness the power of compounding.

The Excluded Employee Leave Buy-Back Program authorizes payment of leave credits to employees who are excluded from Collective Bargaining. On an annual basis the California Department of Human Resources (CalHR) will determine whether or not a leave buy-back will be offered. Eligible employees may receive payment at their regular salary rate in exchange for accrued vacation or annual leave. To find out if your department is offering this benefit, contact your department HR office.

By turning your leave time into retirement savings you can harness the power of compounding

Compounding adds up

In this example, an investor invests $1,000 today earning 8% interest annually. With simple interest, an investor would have $3,400 at the end of 30 years. With compounding, an investor would have over $10,000.

In this example, you invest $1,000 today earning 8% interest annually. With simple interest, you’d have $3,400 at the end of 30 years. With compounding, you’d have over $10,000.

How it works

Frequently asked questions

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What if I do not already have a Savings Plus Account?

If you do not have an account then one will be established for you. Your transfer is invested in the Target Date Fund based on your date of birth. Your transfer remains invested in this fund until you modify your investment election. You will receive a Welcome Letter from Savings Plus once your account is established.

Why must I make an election in December 2023 for hours I will earn January – May 2024?

Due to Constructive Receipt Laws, the Internal Revenue Service (IRS) only allows you to transfer future leave accruals to Savings Plus.

If I need to take an extended leave of absence that uses up all my existing leave accruals, can I get the hours I elected to transfer to Savings Plus back if they have not been transferred?

Your election to transfer leave accruals to Savings Plus is irrevocable. However, if you have a qualifying hardship (applicable for the 401(k) Plan) and need to withdraw funds from Savings Plus you may submit a hardship withdrawal request form to request funds on deposit. This request form is available on the Savings Plus website, under "Early Withdrawals".

Why is the option to Transfer Future Leave Accrual to Savings Plus only available for 401(k) plans, and not 457(b) plans?

This pilot program is only available for transfers to 401(k) plans as a limited trial. If the pilot program is successful, it may in the future be open for other plans.

If I already have a 401(k) Plan can I add the leave accruals back to my existing account?

Yes, all transfers will be deposited into your existing account. You are responsible for ensuring the value of your leave accruals plus any regular contributions do not exceed the annual IRS limit. The 2023 limit if you are age 49 or less is $22,500 per plan. If you are age 50 or older the 2023 limit is $30,000 per plan. The annual contribution limits are subject to change in 2024. If you do not have an account then one will be established for you.

How will the value of my leave accruals be invested (in which fund?)

If you have an existing Savings Plus account, your assets will be invested in accordance with the current contribution allocation you have on file for that plan.

If you do not have an existing Savings Plus account, Savings Plus will establish an account for you or if you are opening an account in the other plan, your initial transfer will be invested in the Target Date Fund based on your date of birth and will remain in that fund until you modify your investment election. Fund Fact Sheets are under "Investment Information" at savingsplusnow.com in the "Investment options and fund fact sheets" section. You may transfer your assets to any Savings Plus investment fund without a charge.

Are taxes withheld from the transfer?

For pre-tax transfer, the cash value is subject to the following mandatory deductions: Social Security; Medicare; State Disability Insurance; and Garnishments (if applicable). Federal and State Tax Withholdings will only be applied to the Social Security; Medicare; State Disability Insurance; and Garnishment withholding amounts not being deferred to Savings Plus account.

For a Roth after-tax transfer, the cash value is subject to the following mandatory deductions: Federal Tax Withholding; State Tax Withholding; Social Security; Medicare, State Disability Insurance; and Garnishments (if applicable).

Both pre-tax and Roth after-tax transfers are not subject to retirement deductions.

What happens if I turn in the paperwork timely, but my Personnel Office does not process the request because they do not have enough funding?

If your department does not participate in the Program, your request becomes null and void and all hours marked to be transferred to Savings Plus will be available for use.

If I elect 40 hours to transfer to Savings Plus and in April my department allows 80 hours of leave buy-back, can I increase my election?

Your initial election to transfer 40 hours to Savings Plus is irrevocable and will be processed as requested. However, you can request up to the additional 40 hours as a cash payment

May I participate as a current rank and file employee?

The option to transfer leave accruals into Savings Plus is currently only available to excluded employees as of December 1, 2023. If the pilot program is successful, it may in the future be available to other employees.

May I transfer future sick leave accruals?

Sick leave is not an eligible leave type for this program. Only vacation and annual leave accruals are eligible.

To take advantage of the program, complete the Transfer Future Leave Accruals to Savings Plus form.

For more information, or to learn more about the Leave Time Buy-Back program, visit CalHR's website.