State of Illinois Deferred Compensation Plan


LATEST NEWS

  • Deferral limits will remain the same for 2021. The IRS announced that pension limitations governing 457(b) plans will remain the same for 2021 as the increase in the Consumer Price Index was not sufficient to meet the statutory thresholds for its adjustment.  Therefore, the elective deferral (contribution) limit for employees who participate in the Deferred Compensation Plan will stay at $19,500. The additional catch-up contribution limit for employees aged 50 and over will remain at $6,500. The Special Catch-Up limit will remain at $39,000. 

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The State of Illinois Deferred Compensation Plan (“Plan”) is a supplemental retirement plan for State employees. Contributions to the Plan can be made on a pre-tax or after-tax (Roth) basis through salary deferrals. However, the combined pre-tax and Roth contributions cannot exceed the IRS limit. In 2021, employees are allowed to defer up to $19,500. Employees over age 50 are allowed to defer up to $26,000. Employees enrolled in Special Catch-Up are allowed to defer up to $39,000.

Pre-tax contributions, together with any earnings, accumulate tax-deferred until the employee terminates service, dies, or incurs unforeseeable financial hardship. Once distributions begin, the distributed monies are fully taxable as ordinary income for federal tax purposes. The funds are never taxed by the State of Illinois.

Roth contributions, together with any earnings, qualify for tax-free distribution when the initial after-tax contributions to the account are at least 5 years old and the employee is age 59 ½ or older, dies, or becomes disabled.

To review your account or make investment changes, you can access your account via the T. Rowe Price website.

Enroll Now and Build for Your Financial Future. Contact your Agency Liaison or the Deferred Compensation Office at the address and numbers below.

Enrollment BrochureDeferred Comp Flyer

Deferred Comp Flyer for Automatic Enrollment

Frequently Asked Questions

Questions and answers to address the most common inquiries about the Plan.

Fund Descriptions

Examine descriptions of the funds available in the Plan with an illustration of their share price stability versus their return potential.

Fund Prices and Personal Account Information 

Access up-to-date, personal account information, including current share prices for all funds, via the T. Rowe Price website. Fund prices are shown under the 'Investments' tab. Registration required for first-time users. 

 Fund Yields[PDF 81k]

Determine the investment results for each of the funds and their appropriate benchmark indexes. 

Forms and Newsletters

Download a State of Illinois Deferred Compensation Plan form or newsletter now using Acrobat Reader.

Liaison Manual [PDF, 1148k]

Reference Manual for State of Illinois Deferred Compensation Plan Liaisons

Roth Brochure or Summary Plan Description

Review a comprehensive, easy to understand guide for the Plan or the Summary Plan Description.

 Distribution

Whether retiring, moving to a job outside state government or leaving state service to pursue family or educational goals, you may decide how you want your State of Illinois Deferred Compensation Plan account distributed. You can now contact T. Rowe Price at 888-457-5770 and request a distribution over the phone. Download a distribution booklet, W-4P Withholding Allowance Certificate, Safe Harbor Notice 2014-74, or the Direct Deposit Form using Acrobat Reader.

Contact Us

CMS Deferred Compensation Office
801 S. 7th Street
PO Box 19208
Springfield, Illinois 62794-9208
217-782-7006 (Voice)
800-442-1300 (Toll Free)
217-785-3979 (TDD)