Deferral limits will increase for 2020. The IRS announced that pension limitations governing the 457 plans will increase for 2020 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 $19,500 which increases the Special Catch-up limit to $39,000. The age 50 catch-up contribution limit will also see an increase from $6,000 to $6,500 making the total contribution limit for those aged 50 and older $26,000 for the 2020 tax year.
The Illinois Deferred Compensation Plan has adopted a default investment policy which is effective immediately. This policy will only affect participants who fail to select their own investment options. If an enrollment or transfer in form is received without any investment being selected this policy will allow the Plan to automatically select an investment fund by default. The investment fund selected will be the Vanguard Targeted Retirement Date fund closest to the year in which the participant turns 65. See the attached notice for more information.
Annual Default Investment Notice
The State of Illinois Employees'
Deferred Compensation Plan is a supplemental tax-deferred retirement plan for state employees.
In 2018, employees will be allowed to
defer up to $18,500 and employees over age 50 can
defer $24,500. The
deferrals, 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.
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)