Note that funds without ticker symbols are collective investment trusts (CITs). If you do not wish to maintain health insurance eligibility, you can choose to convert any portion of your SURS LIS account to monthly income, from 0% to 100%. In this plan there are no minimum guarantees nor are there any limits on the maximum benefits. For any other questions, call SURS atDial Toll Free: 800-275-7877Dial Direct: 217-378-8800, Chairperson: John Atkinson | Executive Director: Suzanne Mayer1901 Fox Drive Champaign, Illinois 61820Dial Toll Free: 800-275-7877, Dial Direct: 217-378-8800, Fax: 217-378-9800, (not available to participants hired on or after July 1, 2005). First, the employer must transmit all payrolls to SURS. You can also maintain access to retiree health insurance (if you are eligible) without giving up access to your entire account balance. The Retirement Savings Plan offers a new, best-in-class investment line-up that includes cost-effective investment options across multiple asset classes allowing members to build a diverse portfolio. Therefore, the full fee does not apply until a member is completely invested in that portfolio immediately prior to retirement. The default retirement age is 65, but it can be changed to any age between 50 and 70. Retiree Healthcare Update - SURS Because the investment options on the core fund lineup can change periodically, it is best to access the most up-to-date information through your Retirement Savings Plan online account at surs.org/login. With more choices comes more complexity. PDF LOCAL 399 SUMMARY OF BENEFITS - College of DuPage You ; . For Traditional or Portable Plan retirements: Retirement claims are finished on a first in, first out basis. Does SURS pay partial month retirement annuities? For RSP members with less than five years of service the reciprocal time may be sufficient to allow you to have the states matching contributions reinstated to your account, assuming you retire reciprocally. THE SURS LIFETIME INCOME STRATEGY (LIS) Unlike mutual funds, CITs are not publicly traded and are not subject to the reporting and disclosure requirements. The employee leaves her account balance with the SURS RSP, which allows the balance to continue to grow. You will not be able to repay any retirement benefit to re-establish your RSP account. Members selecting the RSP have accepted the responsibility for assuming nearly total control over their retirement plan. Members can also run what-if scenarios to see how the income stream would grow if they added money or transferred money into the SURS LIS. You may use more than one option. SURS serves as the withholding agent for retiree insurance premiums however we are not the plan administrator and are not involved with contracting decisions or carrier coverage. Members are limited to one appointment per 12-month period. Benefit Choice Period for Health Insurance Changes is May 1 - 31, 2023 April 25, 2023 The FY 2024 Benefit Choice Period to make health insurance changes is May 1 through May 31, 2023. Members give up eligibility for health insurance with options that include a lump-sum payout at retirement. Many of these have underlying mutual funds which can be accessed for information. Principal will pay you for April, May and June with your first regular deposit paid on July 1. The date you firstbecome a participant with SURS, or another eligible Illinois retirement system covered under the Illinois Retirement Systems Reciprocal Act Determines your eligibility for SURS benefits and vesting requirements (Tier I or Tier II benefits) Tier I - Participation prior to January 1, 2011 This means that whatever the rate is on that exact day is the one you will receive. To be eligible for the CIP, you must have been a full-time employee of any SURS-participating community college and eligible for benefits at that employer. It is not an option in the Retirement Savings Plan. Other risks include inflation risk, which is the risk that securities may decline in value due to fluctuations in interest rates. Once you retire and become a SURS annuitant aged 65 or older, you are required to enroll in the Total Retiree Advantage Illinois (TRAIL) plan, managed through Illinois Central Management Services (CMS). The LIS is a custom date target fund that is composed of a non-secured income portfolio and a secured income portfolio (SIP). All new employees are required to contribute 1.45% of their gross earnings after optional health and life insurance premiums (life insurance premiums up to $50,000 coverage), dependent and/or medical care assistance to the Medicare portion of Social Security. Please note that in order to maintain eligibility for retiree health insurance, you must be receiving lifetime income. The underlying funds for the Stock, Bond, and Real. By not annuitizing, or taking the lump sum option, one was turning down the health insurance and assuming the risk of portfolio management. Roll-ins are allowed from other qualified plans. Ticker Symbols. Community colleges are not state agencies. When you begin transferring money into the Secure Income Portfolio, fees slowly increase to cover the insurance protection on your Guaranteed Income Withdrawal Amount. Members are strongly encouraged to have a counseling appointment to gain a better understanding of how this process will work. Our guide will help you understand health insurance after retirement in Canada. Your pension is based the higher of two formulas which SURS will calculate for you. You may also call the Defined Contribution Contact Center at 800-613-9543 for assistance. The floor is set at retirement. For more information you may contact a SURS Defined Contribution Account Representative. If the member was actively working and contributing to SURS, the surviving spouse is not eligible to utilize the LIS for purposes of income generation. If your annuity payments began at age 60 or later, your earnings during any academic year, combined with your annual base annuity from SURS, cannot exceed your highest earnings during any academic year before you retired. Existing account balances in some TIAA accounts under the individually controlled Group Retirement Annuity (GRA) contracts will remain as currently invested with TIAA but will be closed to new contributions. NOTE: Failure to select provider and fund allocations will result in your contributions being placed in the SURS Lifetime Income Strategy (LIS), which serves as the default fund. The SURS Portable Pension Plan is a Defined Benefit retirement plan that has much in common with the Traditional Pension Plan. When selecting this option, all RSP investment funds not otherwise annuitized must be first moved into the Lifetime Income Strategy (LIS) portfolio. For a general overview of the SURS Lifetime Income Strategy, please refer to the LIS Brochure and for specifics on the underlying investments of the SURS Lifetime Income Strategy, please refer to the Investment Options Guide. receive a SURS retirement annuity as of date of retirement, and submits written notice of intention to retire to HR, through the supervisor, at least three months prior to retirement Benefit eligible retiree is reimbursed up to $2200 for medical insurance premiums for the earlier of 5 years or age 65. Once the court has ruled, SURS will distribute funds according to the Calculation Order when it is received. If your first participation began on or after January 1, 2011, there is no limitation on your post-retirement earnings if you return to work with an employer who is not covered by SURS; however, if you begin full-time covered employment with an eligible retirement system covered under the Illinois Retirement Systems Reciprocal Act, SURS may be required to suspend your annuity during that employment. Until members become vested for retirement benefits and approximately age 50, their contributions go to the non-secured income portfolio. Members who have 20 years or more of service credit receive premium-free health insurance. SURS benefit recipients may be eligible for the State of Illinois Group Insurance Plan or the College Insurance Program (CIP). Under the previous plan, participants had to use 100% of their assets to purchase an annuity at the time they retire to qualify for retiree healthcare or take a lump-sum distribution forfeiting retiree healthcare and requiring the participants to leave the plan at retirement. However, you will not be able to contribute to SURS and you may not be eligible for health insurance as an active employee. This fee is calculated based on the amount invested in the Secure Income Portfolio. This information will be requested by SURS and CMS approximately 90 days prior to your 65th birthday. Yes, the member may do so. Click Select Your Secure Income Level/Retirement Age. These funds can be beneficial in certain asset classes where managers have the potential to deliver strong net of fee performance over various market cycles. For Fiscal Year 2023, the limit is $330,000. In exchange for the fee, members will receive guaranteed income for life that can increase with market gains but will not decrease with market declines. Investing, News, Retirement Planning, Tax Planning. Additionally, CITs also have greater fee flexibility than mutual funds, where SURS is able to negotiate investment management fees for more competitive pricing on your behalf. Annuitization of SURS is the process of converting your benefit into a stream of income payable monthly for the remainder of your life. You should contact SURS for verification of purchase eligibility and/or updated cost. Along with the rebranding of the SMP to the SURS Retirement Savings Plan (RSP), more choices were added. Members eligible for the state of Illinois TRAIL plans are Medicare-eligible retirees who are enrolled in Medicare Parts A & B. Your insurance cards will likely arrive a few weeks after your annuity begin date. Bonds: Bonds are basically loans in which the borrower agrees to pay back principal, plus interest (income), by a certain time. How do I add or change my State life insurance beneficiary? Insurance ProvidersA listing of all the State of Illinois health, dental, vision, prescription and life insurance providers. The chart below summarizes this cost split: Costs above are for the employee only. Electing an annuity remains an option. Importance of health insurance in old age. PDF BENEFIT OPTIONS AT SURS RETIREMENT - University of Illinois Urbana There are three primary calculations used when member retires under theTraditionalorPortableplan: In addition, there is a special formula calculation for Police/Firefighters and a Supplemental Minimum Annuity Guarantee. IMPORTANT! They will pay you for June (TIAA must receive paperwork by the 20th of the month (before 4 pm EST) for you to be paid that month) with your first regular deposit paid on July 1. TIAA will continue to serve as a frozen recordkeeper. 60 days prior to retirement is recommended. Members selecting the SURS Lifetime Income Strategy (LIS) will have the option to purchase income, typically after the age of 50 or possibly as early as age 45 depending upon their individual circumstances and only when they have become vested for retirement benefits. Members who meet the minimum coverage requirements and have less than 20 years split the cost of coverage with the state. Re-Employment After a Pre-Retirement Distribution (not age or service eligible). Retiree Healthcare Update September 20, 2022 | News The Department of Central Management Services (CMS) has recently announced that open enrollment for the state of Illinois Total Retiree Advantage Illinois (TRAIL) Medicare plans will be Nov. 1- Nov. 30, 2022. Please have assets in certain TIAA funds will be provided information regarding TIAA annuity options. Medicare Eligible:If you are enrolled in the State of Illinois Health Insurance Program, you must submit a copy of your Medicare card to SURS in order to avoid an inaccurate calculation of health insurance premiums. For more information on fees, members may consult the RSP materials, the Voya or TIAA websites or contact the SURS Defined Contribution Contact Center at 800-613-9543 or TIAA at 800-842-2252. Offered by bank or trust company. LIS payments will begin when the claims activation date. LIS payments usually arrive in your account around the fourth or fifth business day of each month. In the Lifetime Income Strategy, you may also purchase income just prior to the date of retirement. We have commonly heard the misconception that RSP participants must use the new SIP to maintain health insurance, which is not true. With an annuity you give your money to the insurance company and they simply pay you a lifetime benefit. No. Bonds are closely tied to changes in interest rates i.e., when rates fall, bond prices rise and are considered less risky than stocks in general. Effective on Sept. 1, 2020, Voya assumed the role of Master Administrator for the RSP. Alternatively, one may choose to use the new Secure Income Portfolio (SIP). Offered directly or through financial intermediaries (asset management, insurance companies, etc.) Human Resources provides valuable information to SIU retirees. Your money was moved to the SURS LIS and defaulted to: If you dont make any changes, 100% of your account balance will be on the path to generate guaranteed monthly income in retirement. College Insurance Plan Information about the college insurance plan. By doing so, you will benefit from dollar-cost averaging the price of securing income as it fluctuates over time. How much will I receive if I take a Distribution? If members do not elect the LIS, at retirement they will select from a variety of lump-sum distribution or monthly income options. Convert all or a portion of your account balance to lifetime income with the SURS Lifetime Income Strategy (single-life or joint-life options available). If you transfer funds out of the SURS LIS, you cannot transfer funds back into the SURS LIS for 90 days. This allows you to dollar cost average into your income figure. Benefits - SURS Your pension benefits are subject to taxation by the Internal Revenue Service for federal income tax purposes. Transferring of funds between RSP providers. Annuitize or not annuitize. Asset Portfolios are comprised of low-cost index funds which are also available on the core investment lineup. Existing account balances in TIAA Traditional contracts will remain as currently invested with TIAA. Members are limited to one appointment per 12-month period. When deceased participants spouse passes away, the deceased participant/deceased spouses remaining LIS balance (if it has not been completely depleted from the guaranteed or other withdrawals) can by withdrawn by the participants plan beneficiaries. The borrowers ability to repay typically impacts the bonds rate. You'll have to find a health insurance plan to cover you until you're eligible for Medicare if you retire before age 65. Coverage will be effective the first day of the month in which you become Medicare eligible or the first day of the month in which the enrollment form is received by SURS, whichever is later. If you first began participation prior to January 1, 2011: If you first began participation on or after January 1, 2011: , the survivor annuity will automatically receive an increase of 3% compounded annually. Yes, you should complete and submit an application for each reciprocal system. In an effort to pay you in a timely manner while we collect information needed to calculate your final annuity, SURS issues a PEP on the effective date of your retirement or within 30 days of the receipt of your application, whichever is later.