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Self-Managed PlanSelf-Managed Plan(SMP)(SMP)
401(a) Defined Contribution Plan
Serving Employees of Illinois Community Colleges and Universities
ContributionsContributions
8.0% Employee
7.1% State (total 7.6% with .50 for disability contribution)
15.1% total invested*
*Subject to current IRS code 415(c) limits
Serving Employees of Illinois Community Colleges and Universities
ContributionsContributions
• State contributions will begin with… “The first full payroll following receipt
of the SMP election form”
• Account Balance transferred to fund choice(s) within 21 days from receipt of election form
• Normal contributions are transferred 3-5 days after receipt from employer
Serving Employees of Illinois Community Colleges and Universities
Allocation of ContributionsAllocation of Contributions
Serving Employees of Illinois Community Colleges and Universities
““Fund Overview”, from Fund Overview”, from www.surs.orgwww.surs.org
Serving Employees of Illinois Community Colleges and Universities
What should you do?What should you do?
REVIEW!
REBALANCE!
DIVERSITY!
Serving Employees of Illinois Community Colleges and Universities
Investment Fund TransfersInvestment Fund Transfers
Serving Employees of Illinois Community Colleges and Universities
When can you retire?When can you retire?
• Age 55 with 8 yrs of service credit
• Age 62 with 5 yrs of service credit
• Any age with 30 years of service credit
• Police/Fire age 50 with 25 yrs, age 55 with 20 yrs.
Serving Employees of Illinois Community Colleges and Universities
Accumulating Service CreditAccumulating Service Credit
Service Credit Earned:
• 15 or more calendar days=1 month
• 1-2 months= .25 year
• 3-5 months= .50 year
• 6-7 months= .75 year
• 8 months+ =1.00 year
Serving Employees of Illinois Community Colleges and Universities
Unused/Unpaid Sick LeaveUnused/Unpaid Sick Leave
Converted to extra service, will be used for:
• Vesting
• Eligibility to retire (5 or 8 yrs.)
Annuity Begin Date must be within 60 days of termination to include service
credit converted from Sick Leave!
Serving Employees of Illinois Community Colleges and Universities
Unused/Unpaid Sick LeaveUnused/Unpaid Sick Leave
Unused/unpaid sick leave reported by employer upon termination of employment
Full Work Days = Additional Service Credit
• 20-59 days .25 year
• 60-119 days .50 year
• 120-179 days .75 year
• 180 days or more 1.00 full year
Serving Employees of Illinois Community Colleges and Universities
Purchasing Service CreditPurchasing Service Credit
Will NOT be matched by the State!
“Active” employee:• Prior Service• Other Public Employment-does NOT
count toward vesting or retirement eligibility• Military- does NOT count toward vesting,
does count toward retirement eligibility• Deferred Leave of Absence (w/o pay)
Serving Employees of Illinois Community Colleges and Universities
Purchasing Service CreditPurchasing Service Credit
“Active” or “Terminated” employee:• Repayment of Refund-need 2 years service
following date of refund to repay
How do I purchase Service Credit?• Rollover of Qualified $
• After Tax $
• Installment purchase, if active
Serving Employees of Illinois Community Colleges and Universities
Purchasing Service CreditPurchasing Service Credit
Why purchase service credit?• Vesting-to attain minimum service
requirement
• Increase-annuity benefit with purchase cost
• Tax deferral-if installment purchase, reduce current taxes and defer until distribution
• Insurance-if University employed, may reduce premium cost
Please call SURS for details!Serving Employees of Illinois Community Colleges and Universities
Reciprocal ActReciprocal Act
• Must have participated in at least 1 of the
other 12 Reciprocal Systems in Illinois and earned at least 1 year of credit
• Must meet each system’s minimum service credit requirement
• Earnings from all systems will be considered for your final average earnings
Serving Employees of Illinois Community Colleges and Universities
Options at TerminationOptions at Termination
• Leave money with SURS
• Rollover to another Qualified Plan
• Lump sum refund-(20% withheld for taxes + 10% penalty if not 59 1/2)
<5 yrs…state match forfeited
>5 yrs…entitled to the entire acct. val.
Serving Employees of Illinois Community Colleges and Universities
RetirementRetirement
Same choice with each Provider:
• Rollover to another Qualified plan
• Lump sum (20% withheld for taxes)
• Lifetime Monthly Annuity*o Single Life or
with 10, 15 or 20 year guaranteeo Joint and Survivor (J&S) 50% or 100% or
with 10, 15, or 20 year guarantee
*necessary to be eligible for insurance
Serving Employees of Illinois Community Colleges and Universities
What’s Needed to Retire?What’s Needed to Retire?
SURS must have:
• Termination report from employer
• All contributions (last payroll)
• State matching $
• Verification of birth and marriage
• Retirement application
Serving Employees of Illinois Community Colleges and Universities
Retirement ApplicationRetirement Application
Obtain Application:
• www.surs.org, “Self-Managed”, “Forms & Guides” or…
• Call SURS
Submit within 90-days from the Annuity Begin Date
Serving Employees of Illinois Community Colleges and Universities
On-line Forms-www.surs.orgOn-line Forms-www.surs.org
Serving Employees of Illinois Community Colleges and Universities
Returning to Work after Returning to Work after RetirementRetirement
Self Managed Plan has no time limit or earnings limitation for returning
to work!
No longer eligible to make contributions to SURS
Serving Employees of Illinois Community Colleges and Universities
DeathDeath
“Active” employee benefit recipients:• Spouse-w/o Survivor Waiver
Lifetime annuity, lump sum or rollover
• Beneficiary-lump sum
• Estate-lump sum
With 1.5 years, benefit includes state match
Serving Employees of Illinois Community Colleges and Universities
DeathDeath
“Terminated” employee benefit recipients:• Spouse-w/o Survivor Waiver
Lifetime annuity, lump sum or rollover
• Beneficiary-lump sum
• Estate-lump sum
With 5 years, Benefit includes state match
Serving Employees of Illinois Community Colleges and Universities
DeathDeath
“Retired” employee:
Benefits to your designated beneficiaries will be determined by the annuity contract purchased at the time of your retirement.
Serving Employees of Illinois Community Colleges and Universities
Contact SURS to:Contact SURS to:
• Change address & other personal info
• Change beneficiary
• Reallocate contributions
• Choose Provider(s)
• Coordinate withdrawals
• Inquire about SURS Unified Statement
Serving Employees of Illinois Community Colleges and Universities
Contact Provider(s) to:Contact Provider(s) to:
• Seek investment education
• Determine appropriate asset mix
• Allocate investment Funds
• Inquire about quarterly statements
• Obtain estimate of benefits
Serving Employees of Illinois Community Colleges and Universities
Fund Info. & Estimates:Fund Info. & Estimates:
TIAA-CREF….1-888-219-8310
www.tiaa-cref.org/illinois
Fidelity……….1-800-343-0860
www.fidelity.com/atwork
*Principal…1-877-210-5565x202
*annuity payout onlyServing Employees of Illinois Community Colleges and Universities
Processes, Forms, Processes, Forms, Plan Info. or Detailed Plan Info. or Detailed
Questions:Questions:SURS:
Phone: 1-800-275-7877
(local-378-8800)
FAX: 1-217-378-9800
www.surs.org
Serving Employees of Illinois Community Colleges and Universities
DisclaimerDisclaimerAll aspects of administration of the State Universities Retirement System (SURS), including but not limited to benefit calculation and payment, must comply with state and federal law. No employee of SURS has the authority to bind the system to take action contrary to law, even in the event of misstatement of fact or law. Furthermore, while this letter states SURS’s current understanding of the law, this could change as a result of court opinions, statutory changes, or other matters (e.g., Attorney General opinions). Accordingly, SURS is required under law to correct any mistake in benefit amount, even after payments have begun. Use of any information from this letter, form, or any other document provided by SURS is for general information only and does not represent personal tax or legal advice either express or implied. You must seek professional legal or tax advice for personal income tax questions and other legal assistance.
Serving Employees of Illinois Community Colleges and Universities