Your pension benefits are subject to taxation by the Internal Revenue Service for federal income tax purposes. Members give up eligibility for health insurance with options that include a lump-sum payout at retirement. The TIAA Traditional Annuity Account is a very complex contract with a great deal of restrictions with regards to withdrawals or transfers. If you have money in TIAA, you may also utilize any annuity options they might provide subject to those options being available in the SURS Plan Document. If you are not vested (less than five years of service credit) you will receive your contributions and the investment earnings on your employee contributions. You may also call the Defined Contribution Contact Center at 800-613-9543 for assistance. This fee is charged quarterly. If you meet retirement vesting requirements and take a lump-sum distribution or any lifetime income option, there is no required waiting period to return to employment and there is no earnings limitation. 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. The floor is set at retirement. The LIS is a custom target date fund with underlying portfolios. If the member dies prior to activation of the LIS, the deceased participants LIS Balance (including their secured assets) can be withdrawn by the recordkeeper for the benefit of the survivor or the participants plan beneficiaries. The State of Illinois agreed to pay 5% of the retiree s premiums for each year of service up to 20 years. The SIMPLE IRA must have been open for a minimum of two years. You'll Still Have Coverage As you already know, Canadians have a public healthcare system. Investing, News, Retirement Planning, Tax Planning. the SIP is that you can choose to only use half the account for generating pension income and still qualify for the health insurance benefit. You have retirement health insurance options regardless of your age. SURS will need a photocopy of your birth certificate if you have not already submitted one. SURS reviews the plan and its fees on a regular basis to ensure only cost-effective, high quality options are provided. Mutual funds are typically accompanied by a ticker symbol, so investors are able to search for more information about the securitys holdings and other characteristics. An alternate payee may file a Qualified Illinois Domestic Relations Order (QILDRO) claim in a court of law. First, the employer must transmit all payrolls to SURS. The Investment Committee has established a prudent process for reviewing and monitoring the plans investment lineup to ensure it is compliant with the Defined Contribution Investment Policy Statement. Taking a retirement distribution is an irrevocable action, regardless of the distribution option chosen. 2. Click here to view a list of SURS state employers. The primary source of this information would be the SURS Retirement Savings Plan and TIAA websites. The 50% secure income requirement would not apply. With more choices comes more complexity. 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, Chairperson: John Atkinson | Executive Director: Suzanne Mayer, Dial Toll Free: 800-275-7877, Dial Direct: 217-378-8800, Fax: 217-378-9800, Under 20 year Rates for Under Medicare Age, State Insurance Participation Election Form, State of Illinois Employees Benefits Handbook, State of Illinois Retirees and Annuitants Benefits Handbook. Yes, you can move assets in and out of the core funds by logging into your account at surs.org and selecting View/Manage My RSP Account.. There is neither a monthly nor annual earnings limitations. Yes. Health Insurance is one of the biggest obstacles we see for clients who wish to retire prior to eligibility for Medicare at age 65. Office of the Comptroller of Currency (OCC), IRS, and DOL. Manager not held to ERISA standards. 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. This is the cost to be invested in each fund. This covers the administration of the plan including tracking contributions, earnings, making distributions, filing all necessary forms with the SEC/DOL, maintaining data on the website, etc. Offered directly or through financial intermediaries (asset management, insurance companies, etc.) If you have frozen assets with TIAA (assets that were in certain TIAA funds prior to the October 2020 conversion) you may be eligible for a TIAA annuity as well. The Retirement Savings Plan has more flexibility, which makes annuitizing a bit more complex. To be eligible for the State Group Health Plan, you must meet the minimum vesting requirement for service credit with a state university or an agency of the State of Illinois. With the LIS, if the growth of your account balance exceeds the payout and expenses, your annual benefit may increase. Second, your Human Resources department will need to submit a summary/termination report to SURS. When you begin transferring money into the Secure Income Portfolio, fees slowly increase to cover the insurance protection on your Guaranteed Income Withdrawal Amount. A Tier I participant is eligible for retiree insurance benefits after 5 years of service credit. Within a week of receiving the summary/termination report, SURS will process the information and forward the application paperwork to the LIS provider. For example, your retirement date is April 1 and you are enrolling in State or CIP insurance. Keeping Individual Health Insurance After Retirement :: Drewberry Funds were selected for the RSP using the philosophy that they should be appropriate for an individuals primary retirement account. CITs are sponsored by a bank or trust company and are only available to certain retirement plan sponsors and their plan participants retail (public) investment is not permitted. In contrast, passively managed index funds are constructed to match or track the components of the market index. 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. Participants may still choose to annuitize the lump sum as they have in the past. 3515 independent client reviews rating us at 4.92 / 5. There will not be any state match contributions applied to your purchase. If you wish to return to participation and earn additional benefits, you must complete the Election to Participate During Re-employment Following Receipt of a Lump-Sum Retirement Benefit form. A Guide to Selecting Your SURS Pension Bluestem Financial Quarterly fact sheets for all investments including the CITs can be obtained online by logging into your SURS Member Website account. A reversionary annuity provides your spouse or other dependent beneficiary with a monthly income in addition to what is payable as a survivor benefit. What happens if I file my retirement application late? In addition, members are encouraged to utilize the LIS income estimator which is available through the SURS member website. Purchasing guaranteed income over time also helps protect your assets so that even if markets decrease, you are building guaranteed income for your retirement years that cannot be reduced. Voya is the new plan recordkeeper, replacing TIAA and Fidelity. 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. Insurance Providers A listing of all the State of Illinois health, dental, vision, prescription and life insurance providers. The LIS provider needs 10-14 business days to process and calculate the benefit. SURS allows the surviving spouse (beneficiary) to create a new account at the recordkeeper and move LIS assets from the deceased members account to that new account. The risks associated with the investment options in the core lineup vary, so it is important to carefully review and compare the investment objectives, strategies, fees and risks in the fund fact sheets before making any investment decisions. Home - SURS CITs pool assetsfrom multiple retirement plans into a single investment fund, similar to a mutual fund. For each year of service credit, the state of Illinois will pay 5% of your insurance premium in retirement. Unlike mutual funds, CITs are not publicly traded and are not subject to the reporting and disclosure requirements. She works for 25 years, retiring at age 67. The FAE is determined by comparing: (a) the average of the eight highest-paid consecutive academic years during the last 10 years of employment, and (b) the average of the highest 96 consecutive months during the last 120 months of employment (if applicable), using whichever is higher. Keep in mind that an illustration is simply a snapshot of that point in time. Download the Voya Retire app from the Apple or Google play stores. If you have received an annuity illustration from Principal Financial and would like to request an additional illustration, please send SURS an email through the webmail option on the SURS member website. If you return to SURS-covered employment or employment covered by an Illinois reciprocal agency, you cannot cancel or undo your retirement in order to recontribute to SURS or later retire under the Illinois Retirement Systems Reciprocal Act. 0127 364 6484. It does this by moving 1/15th of your account each year into the Secure Income Portfolio. The Election of Reversionary Annuity form must be on file with SURS at least 30 days prior to your effective date of retirement. The new SURS RSP Lifetime Income Strategy by default steps down your retirement funds from 95% stocks at age 50 to 50% stocks at age 65 by increasing its allocation to bonds (fixed income securities) each year. 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. No. Along with these new choices come more options. 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. There are different rules for participants retiring before age 60 when using the SIP. Each of the white-labeled funds is representative of a mutual fund or CIT. A significant decision if you decide to build your own portfolio is determining the asset allocation and finding the right balance of investments to meet your specific goals. 10 years of service credit is required for Tier II participants to be eligible for any retiree health insurance benefit. If you choose to have some balance remain in LIS and not be subject to the guaranteed payout through the SIP, you cant access the amount in the LIS until you turn age 60. SURS currently uses Principal Life Insurance Company and TIAA as annuity providers. You must apply within six months of the date you become Medicare eligible. If you have misplaced your username or password, re-register or call SURS at 800-275-7877. The number of shares you can purchase for a fixed amount of money varies inversely with the price of those shares. Their Joint LIS Income Benefit (guaranteed monthly payments) that was activated will continue to the surviving spouse. Chairperson: John Atkinson | Executive Director: Suzanne Mayer, Dial Toll Free: 800-275-7877, Dial Direct: 217-378-8800, Fax: 217-378-9800, Illinois Retirement Systems Reciprocal Act, Age 55 with 8 or more years of service, with applicable age reduction, Any age with 30 or more years of service*, At age 62 with 10 or more years of service, with applicable age reduction, At age 67 with 10 or more years of service, Current year earnings and/or vacation payments, Additional credit for unused, unpaid sick leave, Additional service credit purchased after your Application for Retirement annuity is received, Your spouse, if married at least one year prior to your death, An unmarried, dependent child under the age of 18, An unmarried, full-time student under the age of 22, A disabled child, if permanently disabled prior to the age of 18, A dependent parent, age 55 and older who is claimed as a dependent on your tax return. Option 1: The Traditional (defined benefit) plan offers retirement annuity, survivors' benefits, death benefits or refund of employee contributions. If members wish to defer additional income, they should contact their Human Resources Department and inquire about contributing to either a 403(b) or 457 plan. Retirees - SURS SURS has two full time dedicated Defined Contribution Account Representatives. You will then need to go to the SURS Member Website and click on the View/Manage Retirement Savings Plan (RSP) Account button, which can also be found under the Quick Links tab on the right-hand column. After moving all funds into the LIS and activation of at least 50% of your LIS fund total into the guaranteed SIP, any LIS funds not in the SIP may be moved back to RSP Core Funds or withdrawn. In order to participate in the health insurance program after retire-ment, you must be receiving lifetime income. Effective September 2020, big changes will be happening to the SURS Self-Managed Plan (SMP). You are encouraged to utilize the services of the SURS Defined Contribution Account Representatives. This means you're covered for many basic medical services from the time you're born. Our guide will help you understand health insurance after retirement in Canada. Your insurance cards will likely arrive a few weeks after your annuity begin date. ** There is no share class or vehicle of the BlackRock Extended Equity Market Index Fund that is offered as a mutual fund with a publicly available ticker symbol. The systems will then share information so that the proper calculations can be done. What documents should I submit with my retirement application? 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. TIAA will not pay you for April and May. The RSP retirement application is found on the SURS website. Sponsor. Under current law, your pension benefits are not subject to income tax by the state of Illinois. Yes, since the LIS does not have a 50% joint and survivor option, this is allowed. Markets move up and down daily, thus your account balance changes daily. A quarterly performance chart is also available under the Quick Links on the SURS Member website. The goals of the redesign were to: The Self-Managed Plan (SMP) is now the Retirement Savings Plan (RSP). It is important to understand the following re-employment situation before making your decision to take a pre-retirement or retirement distribution. For members desiring to retire under the age of 60 and utilizing the LIS, a special arrangement has been made to permit this, primarily so that insurance benefits can begin on the date of retirement. Get peace of mind. The withdrawal rates provided by insurers at the time your assets are allocated to the SIP. You may use this link for a video on Member Website registration. Members will need to fill out applications with each system. Factors such as account balance (which changes daily), interest rates, mortality factors and age, just to name a few, may change frequently. If your employment with a SURS-covered employer ends, you may leave your contributions in the RSP or take a distribution of your vested amounts. Mutual Fund. Normal processing time is 6 months or longer. Transferring of funds between RSP providers. Members can have the ability to select the funds of their choice, depending upon their risk tolerance, goals, time horizons, etc. There is not a 60-day waiting period. 1. Survivor Benefits | Annuitants Association | Illinois State There may be cases where an individual chooses to forgo their SURS retiree health insurance benefits, but before making this irrevocable decision, it is important to understand what those health insurance benefits are worth. While mutual funds and CITs are both an investment option funded by shareholders that trade in diversified holdings and are professionally managed, there are differences in how CITs are registered and what investors may access them. You'll have to find a health insurance plan to cover you until you're eligible for Medicare if you retire before age 65. Additionally, CITs are not available for retail investors and are typically restricted from distributing fund information to the public. Retirement Savings Plan - SURS 27/10/2020. Benefits are paid out by the providers(s). If you have assets in the SURS Lifetime Income Strategy (LIS), convert at least 50% of your SURS LIS account balance to secure income. The enrollment must be immediate, and there can be no lapse in coverage. You will not contribute the 8% of earnings to SURS. 1. The state matching contributions and the earnings on those contributions are forfeited. This allows you to dollar cost average into your income figure. Part B has a monthly premium starting at $170.10 (2022); cost can increase based on income. This annuity will generally be administered for SURS through Principal Insurance company, or at TIAA if you still have funds in your RSP portfolio invested at TIAA. The SURS Lifetime Income Strategy (LIS) is a professionally managed target-date portfolio that adjusts its investment mix to become more conservative as you age. To be eligible for the SEGIP, you must have at least five years of service credit with a state university or an agency of the state of Illinois. 7 mins. To be eligible for the CIP, you must have been a full-time employee of any SURS-participating Community College and eligible for benefits. [1] Principal Life Insurance Company Illustrative Table of Annuity Premiums for SURS Rates as of October 1, 2022, [2] Chart SURS Blended Rates- Rolling Periods, Lifetime Income Strategy Q4 2022, [3] SURS Retirement Savings Plan Member Guide, page 22, https://surs.org/wp-content/uploads/Guide-RSP.pdf, 4 Considerations When Retiring with SURS Retirement Savings Plan, https://surs.org/wp-content/uploads/Guide-RSP.pdf. The providers are also available to discuss the large variety of distribution options at retirement time. While your retirement can be effective any day of the month, retirement payments are not prorated for the month in which you retire. This is a complex process that requires calculations to estimate the benefit at age 60. Currently, the state covers 5 percent of the total insurance premium for each year of qualified service. It can be used by members after their LIS activation date or by members who have declined the LIS and have chosen to take their withdrawals as needed. Ticker Symbols. At age 63, she fully retires from her private sector position and needs health insurance. The LIS is a custom date target fund that is composed of a non-secured income portfolio and a secured income portfolio (SIP). . Traditional and Protable Plan monthly annuities: After retirement, you may return to work with aSURS-covered employerafter you have been retired for at least 60 calendar days. The SMP was redesigned to better meet the needs of participants by improving the plan offerings for both the accumulation and decumulation of their retirement assets. The FAE is used under some calculations to determine a members retirement annuity and maximum annuity payable. In this example, the monthly pension benefit is only 65% of what it might have been had the account been fully annuitized. You will not start securing income until the later of the date that is 15 years before your target retirement age (the earliest age being age 45) or the date when you become vested by having five years of service credit. You will continue to receive these estimated payments while your claim is being processed. As such, public information is generally unavailable for CITs. There is neither a monthly nor annual earnings limitation. To be or not to be, that is the question.