What documents should I submit with my retirement application? Fund trustee can be subject to ERISA standards. 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. SURS provides information regarding the RSP via written materials, the SURS website, the SURS Member website, quarterly webinars, individual counseling appointments and pre-retirement seminars, as well as by answering questions that come into the SURS Call Center. 2. 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. Before a member makes their Plan Choice Election, any contributions SURS receives for them are held in the trust fund used for the SURS Traditional Plan. The Investment Committee works with an independent external consultant to assist in its responsibilities, review the performance of the plans investment options and review the administrative and operational elements. CITs are typically exempt from SEC registration and thus, have lower regulatory costs. A comparison chart between mutual funds and CITs is provided below: Collective Investment Trust, Offered directly or through financial intermediaries (asset management, insurance companies, etc. Retirement Savings Plan (RSP) FAQs - SURS Turning Age 65 The State of Illinois requires that all insurance plan participants contact the Social Security Administration to apply for Medicare benefits at least three months prior to turning age 65. That amount will then be withdrawn, usually from the non-secured portion of the LIS for each month the member is under the age of 60. An estimate may also be obtained by speaking with an LIS specialist at the SURS Defined Contribution Contact Center. Health Insurance After Retirement in Canada: A Guide - Insurdinary The payroll process requires your employer to provide an FTP (File Transfer Protocol) file with detailed payroll information, release the FTP file from SURS Employer Website, and then post contributions to your account. If you have assets in the core funds (or in any funds remaining at TIAA), annuitize 100% of those assets or move them to the SURS LIS to be used in the SURS LIS calculation. This means if you move money out of these funds, you cannot move money back in until 30 days have passed. Preliminary estimated payments do not include the following: Your employer is responsible for payment of vacation and/or sick leave that you may be entitled to. If you do not elect to participate, no SURS contributions will be withheld. Neither SURS, Voya nor TIAA are allowed to provide ANY type of investment advice. While it is strongly recommended that you have a counseling appointment with a SURS counselor, Appointments may either be in person, via phone call. Her pension is $64,000/year [i] or $5,333/month. It is the amount the member can withdraw monthly from the Secure Income Portfolio during retirement and the amount the participating insurers will pay the member annually for the remainder of their lifetime (or the remainder of the spouses lifetime, if applicable) if the Secure Income Portfolio account balance is exhausted because the Guaranteed Income Withdrawal Amount depleted the account. 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. If the claim is not finalized within the 180 days, the member may need to submit a new application. Opportunity cost represents the potential benefits an investor foregoes by choosing one alternative over another. 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. Keep in mind that an illustration is simply a snapshot of that point in time. This information will be requested by SURS and Central Management Services (CMS) approximately 90 days prior to your 65th birthday. Transferring of funds between RSP providers. No. The withdrawal rates provided by insurers at the time your assets are allocated to the SIP. Many of these have underlying mutual funds which can be accessed for information. However, prior to age 60 that freedom to withdraw the account does not apply. Voya will be responsible for a large amount of communication materials that are made available to each member, including quarterly reports. For example, a pension benefit of $5,000 per month or $60,000 per year on a $1 million account balance equates to a withdrawal rate of 6%. PDF CLASSIFIED EMPLOYEES SUMMARY OF BENEFITS - College of DuPage Funds were selected for the RSP using the philosophy that they should be appropriate for an individuals primary retirement account. Tom Conner Director. The floor is set at retirement. Because of this, historical returns will begin with the inception of this product on September 1, 2020. With the LIS, if the growth of your account balance exceeds the payout and expenses, your annual benefit may increase. Lump-sum rollovers or cash distributions to members follow a similar process. Factors such as account balance (which changes daily), interest rates, mortality factors and age, just to name a few, may change frequently. This includes treasury bills, government securities, certificates of deposit and other highly liquid, safe securities. Register and follow the prompts to select RSP as your SURS retirement . The Illinois Department of Central Management Services (CMS) determines the cost of this insurance. She selects the SURS Traditional Plan. For the majority of Medicare recipients, Medicare begins the first of the month the person turns age 65. 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. The new name better reflects the features of the enhanced plan, including the new hands-off default option that does not require self-managing. IMPORTANT! For those retiring before age 65, the cost of health insurance can be a significant obstacle. We have commonly heard the misconception that RSP participants must use the new SIP to maintain health insurance, which is not true. Retirees - SURS The appropriate form is available on the SURS Member website. While most assets were transferred to Voya during the changeover to RSP, some legacy funds may still exist at TIAA or Fidelity. Must meet vesting requirement of qualifying service for retirement as a Tier I (five years of service) or Tier II (10 years) member. The following are vesting periods for SURS: 4. If you are in the Traditional Pension Plan, the survivor annuity will receive a non-compounding increase of the lesser of 3% or of the change of the Consumer Price Index-Urban (CPI-U) from the preceding year. By investing in the SURS LIS in the years leading up to your retirement, you would systematically purchase secure income over a period of time of up to 15 years. A University Employee has 20 years of service at age 50, at which point she leaves university employment to pursue a second career with a private sector employer. To have your insurance fully subsidized by the State of Illinois, you need 20 years of service credit. By law, annual withdrawals from retirement plan accounts called Required Minimum Distributions (RMDs) must begin by April 1 in the year following the year when you reach RMD age. 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 To view the status of your claim, visit the SURS Member website. 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. A fee of 0.09% to 0.18%, which covers the investment management and administrative fees, applies to the money in the non-secured portfolio during your early working years. To have a healthy retirement income after working for a state of Illinois university, you generally need to work 20 years or more. This fee is calculated based on the amount invested in the Secure Income Portfolio. The State of Illinois requires that all insurance plan participants contact the Social Security Administration to apply for Medicare benefits at least three months prior to turning age 65. and have the ability to increase your monthly income in retirement with market gains but will not decrease your income with market losses. The SIMPLE IRA Certification form must be properly completed. Please note that an application is only valid for 180 days from the date of the signature. If you wish to enroll in CIP at this time, you must submit a completed Benefit Recipient Enrollment form. While the RSP is normally just one piece of your overall financial plan, most financial planners encourage a progressively conservative portfolio as one approaches retirement. When selecting this option, all RSP investment funds not otherwise annuitized must be first moved into the Lifetime Income Strategy (LIS) portfolio. SURS allows the surviving spouse (beneficiary) to create a new LIS account (with their beneficiary assets). Medicare Ineligible: You must submit a notice of ineligibility from Social Security confirming you are not eligible for Medicare in order to avoid an inaccurate calculation of health insurance premiums. You may select a single life annuity or one with joint and survivor options. SURS will send you a Retirement Estimate Request form via U.S. mail to your home address or . Yes, you should complete and submit an application for each reciprocal system. This legislation includes Public Act 90-65 (HB 110) and Public Act 91-0395 (SB 211), as well as the passing of the bill regarding health insurance for community college retirees. The RMD age is scheduled to increase to age 75 for distributions after the year 2033. Note that funds without ticker symbols are collective investment trusts (CITs). Benefits are paid out by the providers(s). Second, your Human Resources department will need to submit a summary/termination report to SURS. New contributions received after Sept. 1, 2020, will also be invested in the SURS LIS unless you make changes to their allocation. This process can also take two days, after which the rollover/lump-sum check is mailed to the member. The first requirement is service credit. Purchase a lifetime monthly annuity with Principal Financial Group2 (single-life; single-life with guaranteed period of 10, 15 or 20 years; and 50% and 100% joint and survivor with guaranteed periods options available). To see your current and projected fees on the SURS Lifetime Income Strategy, please refer to the SURS Lifetime Income Strategy investment section through the member website at surs.org/login. Annuitize the entire balance of your SURS RSP. Social Security provides a guide for you to calculate this reduction https://www.ssa.gov/benefits/retirement/planner/wep.html. If you have any questions regarding the forms needed you may call SURS at 800-275-7877 and ask for the RSP department. 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. This is based on the amount the State of Illinois covers for the cost of the Advantage Plan (Illinois Central Management Services, 2022). The provisions for survivor benefits require a reduction to the retirement and death benefits. 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. The service credit discussed above is the minimum requirements to be eligible for retiree health insurance. College Insurance Plan Information about the college insurance plan. When can I retire? For a retiree with 20 or more years of service, age 65 or older and on Medicare, the value of this benefit is around $150 per month. The following information is provided to assist unit . The investment lineup is designed as a tiered structure to help guide you through your investment decision-making and align with your retirement goals. A Notary Public may be required for signatures on the application. All purchase types are allowed. Yes, the member may do so. No survivor benefits are available unless purchased by the employee. Employer matching funds begin with the first full payroll following the receipt of your RSP election. The 50% secure income requirement would not apply. Fixed Account/Stable Value funds invest in diversified bond portfolios and uses contracts from banks and insurance companies to protect against a decline in yield or loss of capital. Retirement Plans - SURS Effective September 2020, big changes will be happening to the SURS Self-Managed Plan (SMP). Members can find their lifetime blended withdrawal rate on the My Account page of the SURS LIS website. Members with assets at TIAA may log onto their website for account balances or they will be reflected on the quarterly statements. An eligible surviving spouse may activate the new LIS account (or, if under 60, reinstate withdrawals from the non-secured portfolios). 4. Please consult the currentlist of reciprocal systems. These members are paid from the non-secured portion of the LIS in order for them to be eligible to receive insurance benefits. 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. Purchases may only be made by members actively contributing to SURS. This act directed state employees with less than 20 years of service credit, who retired on or after 1/1/98, to share in the cost of health insurance premiums based upon years of service credit. 3. Normal processing time is 6 months or longer. 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. If you first began participation prior to January 1, 2011:Each January 1st, your retirement annuity will automatically receive a 3% compounded increase. The chart below summarizes this cost split: Costs above are for the employee only. Your employer will complete their section. Health Care Insurance The survivor will continue to receive health care insurance after the death of the annuitant assuming that person is the eligible survivor and receiving the survivor benefit. If your Secure Income Level is greater than 0%, assets will be gradually allocated to the Secure Income Portfolio. In addition to the link to the Investment Options Guide and the table in the previous question, the primary sources of information would be the SURS Retirement Savings Plan and TIAA websites and the Registered Representatives available at Voya and TIAA. Retirement is such an accomplishment and we are here to help you through the process. Benefits Home - Western Illinois University 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. Turning Age 65 - SURS Move at least 50% of your RSP portfolio balance into the SURS Secure Income Portfolio and activate the lifetime income benefit. You must apply within 30 days of your 65th birthday. A Tier I participant is eligible for retiree insurance benefits after 5 years of service credit. A combination of Nos. 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. Insurance Providers A listing of all the State of Illinois health, dental, vision, prescription and life insurance providers. The State of Illinois subsidizes (or entirely covers) the rest of your supplemental health cost. MyBenefits FAQs - System Human Resource Services With the remaining RSP balance, allocate 50% to the SIP for lifetime income and 50% to the LIS or Core Funds for periodic withdrawal. Instead those payments will be spread out over your life expectancy, thus resulting in your monthly benefit being slightly higher than the Principal annuity for those who enrolled in insurance. Flexible for negotiated pricing. The conversion is as follows: The percentage of service will not affect your accumulation of service credit for qualification of benefits or vesting. There are several factors that may impact your claim: If you are wanting to change the financial institution where your monthly annuity is deposited, you will need to complete a change form for that specific provider. Members give up eligibility for health insurance with options that include a lump-sum payout at retirement. Since all annuity benefit payments are made on the first of the month, it is recommended that you select the first day of the month in the month in which you desire your benefit to begin. The systems will then share information so that the proper calculations can be done. We can also connect you with important State Universities Retirement System ( SURS) data. A new name: SURS Retirement Savings Plan (RSP). There is no waiting period if you return to employment with an employer who is not covered by SURS. The PIN number can only be mailed to you for security reasons. The new employer offers health insurance. Health Insurance After Retirement - IMRF. Retirement/Financial Planning - Benefits | SIUE Offered to both institutional and retail (public) investors. This information must be submitted to SURS or CMS no later than 60 days from the date you become Medicare ineligible. One benefit of using 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. City Colleges of Chicago do not participate in the CIP. The state of Illinois matches your contribution at a rate of 7.6% of your eligible earnings. These assets will not be automatically transferred. Do I need to purchase Medicare Part B when I retire? This applies whether you are Medicare eligible or ineligible. If you return to work under aSURS-covered employer; Traditional and Portable retirees are subject to an earnings limitation. Service credit can vary based on your SURS membership Tier, which is determined by the date of first employment under a SURS covered employer. 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.
