Retirement Home

401(k): Retirement Savings Plan (RSP)

The Retirement Savings Plan (RSP) is a 401(k) plan. It gives you a way to save for retirement through your own before-tax or after-tax contributions plus company matching contributions*—putting you in control of how much you save for retirement.

Take advantage of the company match by contributing to the 401(k). It’s like getting free money—money you’re not taxed on until you withdraw it.

*Matching employer contributions are invested in the PG&E Corporation Stock Fund. You may, however, reallocate the employer match to the other investment options at any time after it has been credited to your account, subject to the prohibition against insider trading.

Is your 401(k) beneficiary up to date?

Do you have the right beneficiary for your 401(k)? This is a separate election from your life insurance and pension preretirement beneficiary elections. Your beneficiary elections for one benefit won’t carry over to another benefit.

Review your beneficiary elections whenever you experience a significant life event like retirement, marriage, divorce or the death of a previously elected beneficiary.

You can change your beneficiary anytime. Log in to your NetBenefits account at 401k.com or call Fidelity at 1-877-743-4015.

Need help with your account?

Fidelity can help you change your investment mix, access your funds and answer other questions about your account. Log in to your NetBenefits account at 401k.com or call 1-877-PGE-401k (1-877-743-4015).

Representatives are available Monday–Friday except New York Stock Exchange holidays, 5:30 a.m.–9 p.m. Pacific time.

KEY FEATURES

Here’s a snapshot of PG&E’s 401(k) Retirement Savings Plan (RSP).

Eligibility

Most Union-represented, Management, A&T and PG&E Corporation employees are eligible to participate in the 401(k) plan.

Ineligible employees include Hiring Hall, Temporary Additional, Outage, Intermittent, contract employees and leased employees. For details, see your Summary of Benefits Handbook at spd.mypgebenefits.com.

Participation

As soon as you’re hired, you can enroll and start making contributions.

You can change, stop or re-start your contributions at any time.

Contributions

Your contributions and company matching contributions depend on your pension formula and whether you’re in a Union-represented position.

Vesting

You’re immediately 100% vested in the value of your 401(k) account including all company matching contributions.

Investment options

You can choose from a wide variety of investment funds, and you can change your investments anytime.

Investment guidance

You have a choice of accessing free online investment advice or fee-based professional management services at a reduced corporate rate through Financial Engines®.

Investment performance

The value of your 401(k) account fluctuates with investment returns.

Portability

Your 401(k) balance is portable. If you leave PG&E, you can take your 401(k) balance as a lump sum that you can roll over to an IRA or other tax-qualified employer plan—or you can keep your account in the PG&E plan if your account balance is greater than $5,000.

Access

You can access your account anywhere, anytime, by logging in to your NetBenefits account at 401k.com or through Fidelity’s NetBenefits mobile app.

401(k) CONTRIBUTIONS: FOR EMPLOYEES HIRED BEFORE 2013 WHO HAVE THE FINAL PAY PENSION FORMULA

The participation and contribution rules for the 401(k) plan are different depending on which pension formula you have.

Do you have the final pay pension formula? You can change, stop or re-start your contributions at any time.

Your contributions
How much you can contribute depends on whether you’re in a Union-represented position.
Union-represented employees

You can contribute up to 20% of your eligible pay, subject to IRS limits.

Management and A&T employees

You can contribute up to 50% of your eligible pay, subject to IRS limits.

All employees age 50 or older

You can make an additional before-tax catch-up contribution up to the annual IRS limit.

Company matching contributions
How much the company contributes depends on how much you contribute and whether you’re in a Union-represented position. Note, matching employer contributions are invested in the PG&E Corporation Stock Fund. You may, however, reallocate the employer match to the other investment options at any time after it has been credited to your account, subject to the prohibition against insider trading.
Union-represented employees

You become eligible for the company match after you have 12 months of service.

1–3 years of service: PG&E will match $0.60 per $1 you contribute up to 3% of your eligible pay.

3+ years of service: PG&E will match $0.60 per $1 you contribute up to 6% of your eligible pay.

Management and A&T employees

You become eligible for the company match as soon as you start contributing to the plan.

PG&E will match $0.75 per $1 you contribute up to 6% of your eligible pay.

All employees

Get the maximum match:
PG&E makes matching contributions on your 401(k) contributions each pay period, not annually—so if you stop or reduce your contributions, you won’t get the maximum company match.

401(K) CONTRIBUTIONS: FOR EMPLOYEES HIRED IN 2013 OR LATER—OR WHO ELECTED THE CASH BALANCE PENSION FORMULA IN 2013

The participation and contribution rules for the 401(k) plan are different depending on which pension formula you have.

Do you have the cash balance pension formula? You’ll be automatically enrolled in the 401(k) plan at an 8% contribution level. You can change, stop or re-start your contributions at any time.

Your contributions
How much you can contribute depends on whether you’re in a Union-represented position.
Union-represented employees

As soon as you’re hired, you can enroll and start making contributions.

After one year of service—if you haven’t already enrolled, you’ll be automatically enrolled at an 8% contribution level.

You can contribute up to 20% of your eligible pay, subject to IRS limits.

Management and A&T employees

As soon as you’re hired, you can enroll and start making contributions.

30 days after you’re hired—if you haven’t already enrolled, you’ll be automatically enrolled at an 8% contribution level.

You can contribute up to 50% of your eligible pay, subject to IRS limits.

All employees Every January 1—if you stopped contributing—or if you’re contributing less than 8%--you’ll be automatically enrolled at an 8% contribution level.
All employees age 50 or older

You can make an additional before-tax catch-up contribution up to the annual IRS limit.

Company matching contributions
How much the company contributes depends on how much you contribute and whether you’re in a Union-represented position. Note, matching employer contributions are invested in the PG&E Corporation Stock Fund. You may, however, reallocate the employer match to the other investment options at any time after it has been credited to your account, subject to the prohibition against insider trading.
Union-represented employees

You become eligible for the company match after you have one year of service.

After that, PG&E will match $0.75 per $1 you contribute up to 8% of your eligible pay.

Management and A&T employees

You become eligible for the company match as soon as you start contributing to the plan.

PG&E will match $0.75 per $1 you contribute up to 8% of your eligible pay.

All employees

Get the maximum match:
PG&E makes matching contributions on your 401(k) contributions each pay period, not annually—so if you stop or reduce your contributions, you won’t get the maximum company match.

INVESTMENT OPTIONS: OVERVIEW

What kind of an investor are you? Do you like to choose and monitor your retirement investments? Or do you want a professional to monitor and manage your account for you?

PG&E offers a variety of investment options. Some require no involvement from you; others require active decision making from you. PG&E’s 401(k) investment options are structured in three tiers:

Tier 1 Target Date Funds—no involvement from you
Tier 2 Core Funds—moderate involvement from you
Tier 3 Self-Directed Account—heavy involvement from you

You can choose investments from among all three tiers, but you should pay attention to how the investments in each tier work. The goals and investment mix of a Tier 1 Target Date fund may be more helpful for you than a combination of funds from Tiers 1, 2 and 3.

Want professionals to handle your investments?

PG&E offers fee-based Professional Management through Financial Engines. And if you’re at least age 60 or five years from retirement, you have the option of enrolling in the Income+ service through Financial Engines. Both Professional Management and the Income+ service do all the investing for you.

INVESTMENT OPTIONS: TIER 1 TARGET DATE FUNDS

Are you looking for a single investment strategy to achieving a balanced portfolio targeted to a planned retirement date?

  • You decide what year you want to retire; then pick a fund with a target date closest to your retirement date, in five-year intervals.
  • Investment professionals make all the investment selections and asset allocation decisions based on the fund’s target retirement date.
  • The investment mix in your Target Date Fund will adjust automatically to a more conservative mix as the fund’s target date approaches.

The Target Date Funds are the default investment for your contributions. If you don’t provide instructions about how to invest your contributions, they’ll be automatically invested in the Target Date Fund with a target date closest to your 65th birthday.

Are you 65 or older? Your account will automatically be invested in the RSP Retirement Income Fund.

How Target Date Funds work

There are 11 Target Date Funds. Each fund’s investment manager establishes and adjusts the asset allocation for each fund based on the fund’s target date. A fund with a later target date will have more growth investments than a fund with a closer target date—which will have more fixed income securities.

Even though each Target Date Fund has its own investment mix and strategy based on the target date, the funds don’t guarantee a positive return or adequate income throughout retirement. All funds are exposed to market fluctuations.

INVESTMENT OPTIONS: TIER 2 CORE FUNDS

Do you want to build and frequently monitor a portfolio from a limited menu of funds that have been selected by PG&E?

  • You choose among 11 pre-screened funds covering a wide range of asset classes.
  • Most of the Core Funds are index funds with low investment fees.
  • You decide how to invest and rebalance your portfolio over time.

PG&E provides oversight and monitoring of the Core Fund managers to make sure the funds stay consistent with their stated objectives.

For fund descriptions, see your Summary of Benefits Handbook at spd.mypgebenefits.com > Retirement Benefits > Retirement Savings Plan > Investment Options.

INVESTMENT OPTIONS: TIER 3 SELF-DIRECTED ACCOUNT

Do you want a wide range of investment choices—and do you have the knowledge and desire to build and manage an investment portfolio through a brokerage account?

  • You register for a Self-Directed Account through Fidelity BrokerageLink®
  • You choose from thousands of mutual funds available in the Fidelity FundsNetwork through Fidelity BrokerageLink. You can’t use your Tier 3 Self-Directed Account to invest in PG&E Corporation common stock or in any other Tier 1 or Tier 2 funds.
  • You make every decision, and you actively manage and monitor your fund choices.
  • In return for the flexibility of a brokerage account, you’ll have to pay fees associated with various funds and transactions.
INVESTMENT OPTIONS: PROFESSIONAL MANAGEMENT

Do you want personalized help from investment professionals? PG&E offers Professional Management through Financial Engines, an independent investment advisory firm that specializes in providing unbiased advice to investors.

For a fee, you can hire Financial Engines as your investment advisor. Financial Engines will create a retirement savings strategy, professionally manage your accounts for you and give you quarterly progress reports.

If you’re age 60 or within five years of retirement when you’re enrolled in Professional Management, you can take advantage of the Income+ service through Financial Engines. This service can help with planning and account preservation. At your request, the Income+ service can even provide monthly payouts from your account that can last throughout your retirement.

Visit financialengines.com/forpge to see what Financial Engines can do for you.

AGE 60 OR OLDER—OR FIVE YEARS FROM RETIREMENT? INCOME+ SERVICE

The biggest concern most retirees have is whether they’ll have enough money to live on. Studies suggest you’ll need 80% to 90% of your preretirement income each year to keep the same standard of living as today. That amount will increase as the cost of living increases.

Want help managing your 401(k)? Income+ service

If you’re age 60 or older—or five years from retirement—you might be interested in the Professional Management Income+ service through Financial Engines. It offers:

  • A Retirement Checkup from an Income+ representative, who will review when you might be able to retire, your sources of income and your estimated expenses
  • Help preserving your 401(k) account by balancing growth and safety
  • Monthly payouts from your 401(k) that will last throughout your retirement*
    *The investments can’t be guaranteed due to market fluctuations, but you can be reasonably assured that Income+ will manage your account so you receive this monthly payout for life.

To use Income+, you must be enrolled in the fee-based Financial Engines Professional Management service and be at least age 60 or within five years of retirement.

For more information about retaining Financial Engines as your investment advisor—including fees for the Professional Management service, visit financialengines.com/forpge or call Fidelity at 1-877-PGE-401k (1-877-743-4015). Representatives are available Monday–Friday except New York Stock Exchange holidays, 5:30 a.m.–9 p.m. Pacific time.

FREE ONLINE INVESTMENT SUPPORT

Looking for retirement planning tools? PG&E offers free investment support through Fidelity Investments—plus added support through Financial Engines:

  • Free Fidelity planning tools through your NetBenefits account at 401k.com—including an investment calculator that can help you project how much money you might have in your 401(k) as of the date you tell the tool you want to retire—and how that can translate into a monthly income
  • Free Financial Engines Online Advice service, where you can build an investment strategy, get advice on investments in Tiers 1 and 2 and monitor your account through your NetBenefits account at 401k.com

Want details?

For investment information—including prospectuses, fund descriptions and investment performance:

  • Log in to your NetBenefits account at 401k.com
  • Call Fidelity at 1-877-PGE-401k (1-877-743-4015)

Your Summary of Benefits Handbook at spd.mypgebenefits.com has more information about how the investments in each tier work. Click on Retirement Benefits > Retirement Savings Plan > Investment Options.

ACCESSING YOUR ACCOUNT

Before you retire

You can take money out of your account before you retire—as a loan or as an in-service withdrawal. Think carefully before you take money out of your account because you may have to pay fees, taxes and early withdrawal penalties. The IRS has strict rules about when and how you can access your 401(k) account.

For details, see your Summary of Benefits Handbook. Go to Retirement Benefits > Retirement Savings Plan > Accessing Your Account > Taxes and Penalties.

When you retire or leave PG&E

When you retire or leave PG&E, you have several options for your 401(k) account:

  • You can leave your balance in the PG&E plan if your account balance is greater than $5,000.
    If you’re age 55 or older on your last day of employment, PG&E will continue to pay the recordkeeping fees for you. If you’re younger, you’ll need to pay the recordkeeping fees; PG&E won’t pay them.
  • You can roll over your balance into another retirement account, like an IRA.
  • You can take your balance as a lump-sum cash disbursement.
    The cash disbursement will be subject to income taxes and tax penalties if you’re under age 55, or 59-1/2 in some cases.

If you decide to keep your balance in the PG&E plan or move your balance to another retirement account, you won’t be able to make new contributions to your account. However, you will be able to change your investment mix.

Required distributions after you reach age 70½

The IRS requires that you take annual distributions from your 401(k) account and any IRAs you might have by April 1 of the calendar year following the year you reach age 70-1/2. The IRS calculates the minimum amount you must take in order to avoid tax penalties. You’ll have to take a minimum distribution each year, even if you don’t need it to meet your expenses.

See your Summary of Benefits Handbook for details. Go to Retirement Benefits > Retirement Savings Plan > Accessing Your Account > Distributions After Your Employment Has Ended.

WHAT HAPPENS IF YOUR LIFE CHANGES

Taking a leave of absence? Getting divorced? Big changes like these are life events—and they can affect your participation in the 401(k).

Be sure to check your Summary of Benefits Handbook for details about what happens to your 401(k) when you experience these events. Go to Retirement Benefits > Retirement Savings Plan > What Happens:

  • If you’re on an authorized leave of absence
  • If you leave PG&E or retire
  • If you die
  • If you transfer to or from a Union classification
  • If you get divorced
  • If you get rehired