LATEST NEWS
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End of the Fee Waiver. As previously communicated in early 2021, administrative fees incurred by participants in the Plan were temporarily waived. However, effective the fourth quarter of 2021, the Plan administrative fees will resume. These fees will be deducted from participant accounts on December 31, 2021 and categorized on the fourth quarter statements as “Fees”.
On November 10, 2021, the attached
email was sent from T. Rowe Price to all participants in the Plan that have an email address on file. The attached
letter was mailed to participants that have not provided an email address.
Deferral limits will increase for 2022. The IRS announced that pension limitations governing the 457 plans will increase for 2022 as the increase in the Consumer Price Index was sufficient to meet the statutory thresholds for its adjustment. Therefore, the elective deferral (contribution) limit for employees who participate in deferred compensation will increase to $20,500 and the Special Catch-up limit will therefore increase to $41,000. The age 50 catch-up contribution limit will remain at $6,500 making the total contribution limit for those aged 50 and older $27,000 for the 2019 tax year.
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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 enroll in the Plan, create an account on the
T. Rowe Price website. This account is used to make changes to your contribution amount, investment mix, and beneficiary elections. You may also contact T. Rowe Price over the phone by calling (888) 457-5770.
Questions and answers to address the most common inquiries about the Plan.
Examine descriptions of the funds available in the Plan with an illustration of their share price stability versus their return potential.
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.
Determine the investment results for each of the funds and their appropriate benchmark indexes.
Download a State of Illinois Deferred Compensation Plan form or newsletter now using
Acrobat Reader.
Reference Manual for State of Illinois Deferred Compensation Plan Liaisons
Review a comprehensive, easy to understand guide for the Plan or the Summary Plan Description.
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.
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)