Important Plan Design Changes. Several major changes have been made to the way the State of Illinois Deferred Compensation Plan is administered. A new Enrollment Brochure has been created to reflect those changes.
Effective June 15, 2020, participants must visit the
T. Rowe Price website or call (888) 457-5770 to request a salary deferral change or to enroll in the Plan. CMS will no longer accept Enrollment or Change forms, except in the case of lump sum deferrals. Enrollments and salary deferral changes will be effective the first pay period of the following month. Revocations will be effective as soon as administratively possible.
Effective June 15, 2020, participants must visit the
T. Rowe Price website to designate or change beneficiary elections. Participants may also call (888) 457-5770 to request a paper form by mail. Current beneficiary elections on file with CMS will remain in effect until a new election is made through T. Rowe Price.
Effective July 1, 2020, participants may elect to defer a percentage of their pre-tax gross compensation. This new deferral option is in addition to the current method of electing a flat contribution amount. A participant’s current deferral method will not change unless they make a new election. To elect a percentage deferral, participants must visit the
T. Rowe Price website or call (888) 457-5770.
Public Act 101-0277 amended the Illinois Pension Code to require automatic enrollment of certain new hires into the Deferred Compensation Plan.
Effective July 1, 2020, any new State of Illinois employee that is a member of the State Employees Retirement System (SERS), the General Assembly Retirement System (GRS), or the Judges Retirement System (JRS), and has not contributed to one of these retirement systems prior to July 1, 2020, will be automatically enrolled in the Plan.
New employees that are subject to automatic enrollment will have 30 days from their start date to opt out of the Plan. If a new employee is automatically enrolled, they will have 90 days from their enrollment to request a refund of their contributions. Plan participants may revoke their contributions at any time.
CARES Act Changes. In accordance with the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the State of Illinois Deferred Compensation Plan is enacting several changes to assist qualified individuals who have experienced adverse financial consequences due to the coronavirus. To determine if you are a qualified individual, please refer to the attached
Effective May 29, 2020, qualified individuals may request penalty-free distributions up to a total of $100,000 (not to exceed the participant’s account balance) through December 31, 2020. Additionally, qualified individuals may defer loan repayments due through December 31, 2020. Finally, certain required minimum distributions received in calendar year 2020 may be eligible for a rollover back into the plan.
For more information on coronavirus-related distributions, loan repayment suspension, or the rollover of required minimum distributions, please call T. Rowe Price at
1-888-457-5770. Representatives are available to assist you on business days from 6 a.m. to 9 p.m. Central Standard Time.
Addition to your Plan’s investment lineup. Effective July 1, 2020, the Vanguard Target Retirement 2065 Trust will be available to investors in the Plan. Find additional details on this, and current, Target Retirement Trust funds
here. A fact sheet may be found on the
Fund Descriptions page.
The State of Illinois Employees' Deferred Compensation 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 2020, 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.
Questions and answers to address the most common inquiries about the
Deferred Compensation Plan.
Examine descriptions of the funds available in the
Deferred Compensation 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.
Deferred Compensation form or newsletter now using
Reference Manual for Deferred Compensation Liaisons
Review a comprehensive, easy to understand guide for the Deferred Compensation 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
Deferred Compensation account distributed. You can now contact T. Rowe Price at 888-457-5770 and request a distribution over the phone. Download a
W-4P Withholding Allowance Certificate,
Safe Harbor Notice 2014-74, or the
Direct Deposit Form using
Deferred Compensation Office
801 S. 7th Street
PO Box 19208
Springfield, Illinois 62794-9208
800-442-1300 (Toll Free)
Last Updated 07/21/2020