For years, members have asked for more flexibility in their 401(k) options — and until recently, PG&E was unwilling to discuss changes outside of General Negotiations. Thanks to the persistence of IBEW 1245, those long-standing requests will finally become a reality at the start of 2026.
Beginning January 1, 2026, two important improvements to the PG&E Retirement Savings Plan (RSP 401(k)) will go into effect under LA 25-16 [link to LA 25-16]:
- Roth 401(k) Option
IBEW 1245 represented employees will be able to contribute to a Roth 401(k). Unlike pre-tax and after-tax contributions, Roth contributions grow tax-free — and qualified withdrawals in retirement may also be tax-free. - Increased Contribution Limit
Members will have the option to contribute up to 50% of pay (compared to the current 20% cap). This added flexibility allows members to save at the pace that best matches their financial goals.
While financial advisors and online resources can provide more details on Roth contributions, PG&E plans to host educational sessions starting in late October 2025.